GM plans to invest around $16 billion on factories and facilities across the United States through 2016. The carmaker is also making an $11-billion capital investment in China through 2016. Selim Bingol, GM vice president of public policy, noted in a letter published in the Wall Street Journal that the investment in China will come out from their joint ventures in the Asian country.
GM’s new figure marks an increase from one announced in 2011 – a $7-billion investment through 2015. Through its joint ventures in China, GM sold around 2.84 million vehicles in the country in 2012 and targets to spike the figure to 5 million units by 2015.
The Journal ran a commentary last week on its op-ed page titled, “Welcome to General Tso’s Motors.” In the commentary, the Journal said that China “is disproportionately benefiting” from the GM’s U.S.-supported bailout in 2009.
In defense of the carmaker, Bingol noted that GM “was in China long before the economic meltdown of 2008-2009, and not one dollar of U.S. taxpayer rescue money was spent” in the carmaker’s operations in the Asian country. He remarked that GM’s joint ventures in China are self-funding, which means funds spent are generated in the ventures.
GM’s U.S. spending plan is connected to chief executive Dan Akerson’s strategy to increase operating margins to 10 percent in North America by mid-decade from just 7.4 percent in the past three years. As part of its plans to boost profits and regain market share, GM is launching around 20 new or refreshed vehicles in the US.