General Motors (GM) has once again responded to President Donald Trump's call for companies to invest more in domestic manufacturing, announcing a $4 billion investment in the expansion of three factories over the next two years. The largest U.S. automaker said on Tuesday the move will allow it to assemble more than 2 million gas and electric vehicles domestically each year.
Plants receiving capital injections include the Orion Assembly Plant in Orion Township, Michigan; the Fairfax Assembly Plant in Kansas City, Kansas; and the Spring Hill Manufacturing Plant in Spring Hill, Tennessee.
GM noted that this follows the company's announcement that it will invest $888 million in its Tonawanda powertrain plant near Buffalo, New York, where it plans to build next-generation V-8 engines.
CEO Mary Barra said the company believes "the future of transportation will be driven by American innovation and manufacturing expertise" and that the investment "demonstrates our continued commitment to producing vehicles in the United States and supporting American jobs."
If the president's proposal comes to fruition, increasing production in the U.S. would also provide additional financial benefits to GM. Trump’s budget plan — the so-called “Great and Beautiful Act” currently being debated in the Senate — calls for making auto loan interest tax-deductible, but only on U.S.-made vehicles. That could help GM attract more buyers from rivals that import their products because they can't offer tax breaks.
GM shares were up 2% in early trading Wednesday, but are down 6% this year.