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 Australia Pty Ltd. 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.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get commission from just 0.08% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
