Investing.com -- First the "Trump Effect" powered stock market indexes to record highs on Wall Street. Now, it appears to be changing the strategies of many major Main Street manufacturing companies.
General Motors Company (NYSE:GM) is this week poised to announce more than $1 billion in new investments at manufacturing plants in the U.S., a strategic move viewed as a response to pressure from President-elect Donald Trump, who takes office on Friday.
The spending will create 1,000 manufacturing jobs, analysts said. The formal announcement is expected as early as Tuesday, analysts added.
The Detroit-based automaker follows Ford Motor Company (NYSE:F), Fiat Chrysler Automobiles NV (NYSE:FCAU), and Toyota Motor Corp Ltd Ord (NYSE:TM)., which since the November election have announced plans to build new car plants here in the U.S., rather than in Mexico.
Trump last week in a Twitter posting stated that he thought GM would soon be following its corporate competitors with an expansion in the U.S.
GM's CEO reportedly spoke with the president-elect earlier this month, after Trump publicly reiterated his plan for a "big border tax" for cars made for the U.S. market in Mexico.
Ford CEO Mark Fields last week said the scrapping of foreign outsourcing plans was a "vote of confidence" in the incoming Trump administration, which has promised to lower corporate taxes and an increase in manufacturing jobs for working class whites and blacks in major metro areas throughout the "Rust Belt" region of Midwestern states, including Ohio, Pennsylvania, Michigan, and Wisconsin.