Here’s How Automakers Are Investing In America
America’s largest car maker may be expecting a modest 2013, but what it lacks in sales growth it will make up for with investment. At a speech Wednesday night, Mark Reuss, North American President for General Motors (NYSE:GM), announced that the company will be investing an additional $1.5 billion in North American factories this year.
The figure stacks on top of some $10.2 billion already spent by the company since July 2009, and is part of GM’s long-term strategy to re-establish both its market position and its brand image after its near collapse. GM is still America’s largest manufacturer and controlled 18.1 percent of the market in 2012, but that share dropped from 19.6 percent in 2011 at the hands of foreign competitors such as Toyota (NYSE:TM) and Honda (NYSE:HMC) as they recovered from the March 2011 earthquake, which severely interrupted their supply chain and dragged on production.
Ford’s (NYSE:F) market share also declined in 2012 — from 16.8 percent in 2011 to 15.7 percent in 2012 — and automakers seem to be unanimously turning to the same strategy to drum up sales…