MOTORING NEWS - General Motors (GM) and Hyundai both announced plans to invest billions in their assembly plants in the US.
The news was announced a week before president Donald Trump was sworn in. Trump has not been shy about encouraging companies to boost employment.
GM said it will add about 450 jobs as part of a $1 billion investment in a plant in Michigan to assemble axles for pickup trucks. Earlier Trump nudged GM for not having made major investment announcements like Ford and Fiat Chrysler Automobiles.
The manufacturer also indicated that it will add about 5 000 salaried positions, many of which will be in the Detroit area not far from its headquarters. GM's announcement highlights a wider move by car manufacturers to begin assembling more vehicle components in-house rather than relying on outside suppliers. The company said it is attempting to build supplier parks near some of its major American assembly plants, which will be a combination of outside parties and components put together by GM.
In a separate statement, Hyundai said it plans to invest $3.1 billion into its Alabama and Georgia assembly plants as well as increasing its research and development activities in the US by 2021. The Korean company's president, Chung Jin Haeng, said they are also exploring an additional assembly plant for its Hyundai and Kia-branded vehicles in the US.
Both Hyundai and GM assemble some cars in Mexico, where wages are considerably lower than in the US. Trump has taken particular aim at vehicle assembly plants south of the border and several brands have made major investment announcements in the US recently.
