General Motors followed in the footsteps of other carmakers who folded after President-elect Donald Trump's criticism. The actions of the carmakers after Trump's rebukes display the power that the United States president wields when it comes to business decisions and the U.S. economy.
CNBC reported that GM promised to add and retain 1,500 jobs in the U.S. The addition reflects the carmakers willingness to contribute to the Trump's effort to boost the labor market and cooperate with the new administration.
Trump has been criticizing manufacturers, particularly carmakers that have previously disclosed plans to expand their businesses in other countries outside of the U.S. such as Mexico. The president-elect supports protectionist ideas when it comes to the U.S. economy and trade.
GM has boasted that it is planning to invest $1 billion in the U.S. As with Ford and Fiat Chrysler, GM said that the investment was already on the table, denying that Trump's criticism has something to do with the business decision.
CNET reported that another foreign carmaker that has announced an investment in the U.S. is Hyundai. The Korean carmaker promised that its investment in the U.S. will balloon by more than 50% than originally planned.
GM's investments will cover new vehicles, technology and certain car parts that will be created and manufactured in the U.S. The news comes after Trump threatened foreign carmakers with 35% import tax should they sell cars in the U.S. that are manufactured in a different country.
Aside from the 1,500 jobs that will be added and retained in the country, GM also boasted that it will create about 5,000 jobs in a span of years. It is not clear what the impact will be on other countries of the decisions to invest more in the U.S. Following Trump's bullying, manufacturers may be forced to pull back investments in other country just to be on good terms with the president-elect.
Jobs & Hire previously reported that Trump praised Ford and Fiat Chrysler after the carmakers decided to invest more in the U.S.