CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

GM share price down 2% after hiring new workers for plant

General Motors plans to invest $300 million in electric cars and hire 400 workers.

General Motors (GM) share price is down despite good news from the company. GM announced it will hire 400 workers for its electric vehicle plant in the corporation’s home state of Michigan.

Why is GM hiring new workers?

GM is adding new workers after a focus on its new electric vehicles and renewed commitment to US manufacturing.

Chief executive officer,(CEO), Mary Barra, touted the new deal as part of a reinvention for GM.

'We are excited to bring these jobs and this investment to the US. This new Chevrolet electric vehicle is another positive step toward our commitment to an all-electric future. GM will continue to invest in our US operations where we see opportunities for growth,’ said Barra.

The corporation may also be responding to pressure from car workers’ unions and US President, Donald Trump. The car company was widely criticised for closing five plants in the US and Canada in autumn 2018 and laying off thousands of employees in an attempt to cut costs. The company pledged to find jobs in other locations for the displaced workers.

The carmaker will invest $300 million in its Orion Assembly plant in Lake Orion, Michigan. The new gas-free car will be built in the same factory as the Chevrolet Bolt electric vehicle.

‘It makes sense because the Chevrolet Bolt EV is built at Orion and this is a great workforce. So there is capacity here to be able to do that and there are synergies as well,’ said Barra.

How did auto workers respond to GM's new investment?

Auto worker unions that disapproved of GM’s layoffs are pleased with the decision to add more employees to its workforce. Terry Dittes, vice president at the United Auto Workers Union that represents GM employees, praised the corporation’s decision.

‘The great workforce at Lake Orion understands that today’s announcement will provide over 400 new jobs for a General Motors product of the future built by UAW Local 5960 members for years to come right here in Michigan,’ said Dittes.

‘Today’s GM commitment of $300 million to build this electric vehicle, with our UAW members, is a good start on GM’s investment toward keeping future manufacturing jobs here in America,’ added Dittes.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.