GM decided to move axle work from Mexico 18 months ago
General Motors’ decision to move axles production from Mexico to a Michigan components plant is tied to a strategy announced more than 18 months ago, two sources familiar with the plans told The Detroit News.
The automaker revealed today a plan to add thousands of new jobs in the next few years, including axle work that will be taken from a supplier that manufactures some of its products in Mexico. GM said the move would create 450 U.S. jobs.
GM declined to name the supplier or where or when those jobs would go to the U.S. However, American Axle & Manufacturing Holdings Inc. confirmed The Detroit News that it was losing the work.
The automaker announced in June 2015 a plan to produce future vehicle components at its own plants. The company said at the time it would spend US$ 5.4 billion in U.S. plants over three years.
Following GM plans, American Axle announced in July 2015 that it would lose some of the axle and driveshaft work for GM’s next-generation full-size pickup program. The Detroit-based supplier currently builds axles for GM’s full-size pickups at its Three Rivers, Michigan, plant and at its Guanajuato Manufacturing Complex.
American Axle also pointed out that it has covered approximately 90 percent of this expected impact with new programs and businesses that “will launch in the 2018 to 2020 time frame”.