General Motors CEO Mara Barra revealed on Thursday that the car manufacturer would invest an extra $24 million in its Fort Wayne, Indiana factory, where the carmaker constructs full-size Chevy and GMC pickup.

Pickups are at the rewarding core of GM’s service, allowing the car manufacturer to generate money that it can utilize to buy electrical and self-governing automobiles. However a few of GM’s loan needs to spend for its bread-and-butter, and Fort Wayne has actually now gotten $1.2 billion in overall, out of the $23 billion GM stated it has actually pumped into United States production given that the monetary crisis.

Learn More: It appears like Trump simply revealed GM’s strategy to offer its Ohio vehicle factory to an electric-truck business– prior to GM might

“We are constructing Chevrolet and GMC team taxi pickups at record volume and mix levels to satisfy consumer need and the $24 million financial investment will permit us to construct much more,” CEO Mary Barra stated in a declaration.

For the statement, Barra took a trip to the plant, situated in northeastern Indiana, the house state of Vice-President Mike Pence– and a state that President Donald Trump brought by over half million votes in the 2016 election.

Politics matter– however so do pickups

A GMC pickup being put together at the plant.
GM

GM and Barra have actually skirmished with Trump over the idling of a factory in Lordstown, Ohio– another state that chose Trump in2016 The primary United States car manufacturer is now in speak to offer that factory, after ending production of the Chevy Cruze sedan there and using movings to displaced employees.

Politics most likely didn’t control GM’s choice on Fort Wayne, although Barra was sending out a clear message to the White Home. Business reasoning for putting funds into the factory is strong, provided the appeal– and success– of what it constructs.

“Combined sales of the Chevrolet Silverado 1500 and GMC Sierra 1500 team taxi pickups, which released in the 2nd half of 2018, were up 20 percent in the very first quarter of 2019 versus a year back,” GM stated in a declaration, including that it’s “forecasting another considerable boost for the 2nd quarter.”

Barra has actually been laser-focused on making the most of GM’s return on invested capital, so this relocation is simply the most recent example of the business putting funds where they can make sure the very best results for customers and investors.

GM’s Chevy and GMC brand names are likewise in an old-fashioned truck war with Ford and Fiat Chrysler Vehicles’ RAM, so it can ill-afford to stint pickups. In 2018, Chevy and GMC integrated offered over 900,000