General Motors has experienced thirteen consecutive quarters of growth and is now formulating plans to invest about US$16 billion in American factories and faciliities up until 2016. This would be higher investment volume compared to its plans for China, through a letter published in the Wall Street Journal.
The US investment figures was disclosed after its announcement of US$11 billion investment for its China joint venture last month. This was an increase in funds from a 2011 budget outline through 2015.
The Wall Street Journal also ran an op-ed commentary titled, "Welcome to General Tso's Motors", saying China is benefitting disproportonately from the bankruptch reorganization of GM. Previously, the paper had criticized the bailout of the Detroit based car maker.
According to Selim Bingol, GM VP for Public Policy, through the letter said, "The $11 billion in capital that will be spent in China by 2016 is coming out of our joint ventures rather than Detroit and is far less than the approximately $16 billion in capital GM will invest in the U.S. over that time."
He added, "GM was in China long before the economic meltdown of 2008-2009, and not one dollar of U.S. taxpayer rescue money was spent on our operations there. Our Chinese joint ventures are self-funding, meaning we require funds spent there to be generated there."
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