GM Plans About $16 Billion in Investments in U.S. by 2016
By Tim Higgins - May 6, 2013
General Motors Co. (GM), profitable for 13 consecutive quarters, is planning to invest about $16 billion on U.S. factories and facilities through 2016, more than it will spend in China, the company said.
“The $11 billion in capital that will be spent in China by 2016 is coming out of our joint ventures rather than Detroit and is far less than the approximately $16 billion in capital GM will invest in the U.S. over that time,” Selim Bingol, GM vice president of public policy, said in a letter published in the Wall Street Journal.
GM disclosed the U.S. investment figure after announcing the $11 billion investment for its joint ventures in China last month in Shanghai. That was an increase from a 2011 outline to spend $7 billion through 2015. GM through its joint ventures sold 2.84 million vehicles in China, its biggest market, last year and wants to boost that to 5 million by 2015.
The Journal last week ran a commentary on its op-ed page titled, “Welcome to General Tso’s Motors,” saying China “is disproportionately benefiting” from the 2009 U.S.-backed bankruptcy reorganization of Detroit-based GM. The Journal’s editorial page previously has criticized the bailout.
GM “was in China long before the economic meltdown of 2008-2009, and not one dollar of U.S. taxpayer rescue money was spent on our operations there,” Bingol said in the letter. “Our Chinese joint ventures are self-funding, meaning we require funds spent there to be generated there.”
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http://www.bloomberg.com/news/2013-05-06/gm-plans-to-invest-about-16-billon-in-u-s-by-2016.html