GM To Open Michigan Software Center, Creating 1500 New JobsVW Staff
On Monday, General Motors Company (NYSE:GM) said it will be creating 1,500 jobs at its new software development center in Warren, Michigan. This comes on the U.S. automaker's earlier July announcement to move external information technology work back internally, to the company.
Over the next four years, General Motors Company (NYSE:GM) plans to hire software developers, database experts, analysts, and other IT positions, reported Reuters. The Michigan venue represents the second of four total software development locations that the company plans to open; this follows September's announcement of the first one in Austin, Texas.
With two down, two to go, the other locations and number of jobs added has not been announced yet.
Currently, General Motors Company (NYSE:GM) has about 90 percent of its IT services outsourced, with the balance completed in-house, but between the next three to five years, this number will flip-flop. In July, the company separately said it planned to move away from 23 data centers around the world, to two in only Michigan.
General Motors Company (NYSE:GM) spokesperson Julie Huston-Rough, explained that carmakers hit a balance between conducting computer work in-house and utilizing outside companies, reported the Washington Post.
In addition, the company has headed to college campuses and local IT job fairs to recruit for the new positions.
The IT moves are being directed by new GM Chief Information Officer, Randy Mott; in June he presented a plan to GM's IT employees. He thinks the change will allow General Motors Company (NYSE:GM) to become more efficient and productive. Mott would also like workers to focus on development and innovation at the venue.
As for either the cost or savings of the plan, GM has not disclosed any figures, but according to Reuters, they will slash the company's large IT applications list by a minimum of 40 percent, and move toward a standardized platform. GM will also make transmitting data easier.
The company has partnered with the state of Michigan for Monday's announcement, and Michigan Gov. Rick Snyder, said earlier, in a news release, that this represents the first of three total announcements by General Motors Company (NYSE:GM) regarding job creation in the state. It will add 2,000 positions, and invest close to $300 million in Michigan.
Huston-Rough was unaware of additional jobs, other than the ones at the IT center.
In other recent General Motors Company (NYSE:GM) news, the company reported last Tuesday that its September auto sales came in lower than analysts' expectations, with its volume increasing 1.5 percent, as compared to the previous year's figures.
In September, General Motors Company (NYSE:GM) sold 210,245 total vehicles across its divisions. Its strongest performers were the Buick and Chevrolet lines, with increases of 7.9 percent and 1.5 percent, respectively. The company did see weaker September sales in its GMCs (unchanged) and Cadillacs (decline of 1.3 percent).
GM's stock is currently trading down 0.81 percent to $24.60.