American automaker General Motors (GM) has announced plans to invest approximately $5.4 billion over the next three weeks to improve and modernize its onshore factories. This plan is part of a broader effort by the centuries-old automaker to secure more American jobs.
It’s no secret that GM has been struggling as of late. Like many automakers, it was hit hard in 2009 from the country’s economic downturn. This prompted the U.S. government to issue a financial lifeline, keeping the nation’s largest automaker afloat through those troubling times. In recent years, however, GM has worked aggressively to turn its image around, with a focus on improving its line of vehicles while reshoring jobs back to the United States. This has apparently paid off well for the automaker, as recent financial statements reveal strong profits that continue to rise.
So, how does GM plan to use its five-plus-billion-dollar investment? The automaker has declined to say exactly how it will spend the money, but we do know that some of it will be invested into three Michigan factories, which will reportedly receive a total of $783.5 million for various improvements and renovations. Just the improvements being made to the GM Lansing factory alone will help retain nearly 1,900 American jobs, attesting to the benefit of investments such as this.
Michigan Governor Rick Snyder noted that GM is investing heavily into the state’s automotive industry. Snyder added that automotive heritage is a part of Michigan’s culture, with people and organizations from around the globe recognizing the state as a leading automotive hub.
“General Motors is investing in Michigan – and Michiganders,” Gov. Rick Snyder said. “Our state’s automotive heritage and expertise is known around the globe, and GM and its workforce are a major part of that. We’re going to continue to ensure the best environment for GM, the auto industry and all other industries to grow and thrive, creating more and better jobs. That includes connecting and developing the talent to keep the economic engine running at full speed long into our state’s bright future.”
Hopefully, other automakers will follow suit by making investments of their own. If other automakers take steps to invest in local factories, more jobs will be brought back to the U.S., bolstering the country’s economy.