Bullying works: GM moves work from Mexico, promises thousands of new jobs

These moves are part of a $1 billion investment in US operations.

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A big shift in GM's manufacturing efforts is sure to earn a certain President-Elect's approval on Twitter.

General Motors announced that it would move axle production for the next generation of its full-size pickup trucks from Mexico to the US -- Michigan, to be specific -- which will create approximately 450 jobs. Additional insourcing efforts should contribute to a net growth of about 5,000 jobs over the next few years.

GM is also pressuring its suppliers to bring manufacturing closer to its assembly plants, in order to lower costs and further expand US jobs.

Raymond Boyd/Getty Images


The automaker also announced that it plans to invest an additional $1 billion in US manufacturing efforts, covering new vehicles, technology and individual part projects. This investment is connected to about 1,500 new or retained jobs and it comes on the heels of $2.9 billion in investments over the course of 2016.

Part of this massive shift in manufacturing focus can be attributed to President-elect Donald Trump. His campaign of publicly bullying companies on Twitter drew attention to companies offering foreign-made "American" products on US soil. And despite what your teachers say about bullying, it seems to be working. The Detroit Auto Show was rife with automakers keen to tout just how many of their products are made in the US.

Domestic automakers aren't the only ones feeling the heat. Hyundai said today it would increase US investment to $3.1 billion over the next five years, which may include a new plant. That's 50 percent more than the company originally intended to spend here. It's impressive what the threat of a 35-ish percent border tax will do.

Automakers have traditionally outsourced low-margin vehicles to other nations in order to keep costs down. Sedans lag behind crossovers in terms of both demand and profit margin, so they're usually the first to be considered for outsourcing. This push to move as much production as possible to the US may end up negatively affecting these vehicles' prices, but the results won't be clear until the new administration takes up the mantle and starts pushing for actual changes to import duties.

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