GM's Plans to Invest $5B in U.S. Plants Will Spur Others to Spend

After General Motors (GM) announced Thursday it will invest $5.4 billion in U.S plant improvements during the next three years, Kelley Blue Book senior analyst Alec Gutierrez predicts that competitors like Ford (F) and Fiat Chrysler (FCAU) will follow suit. Gutierrez says it's clear indication about the robust nature of the market today, and it wouldn't be surprising if other automakers were inspired to invest in their own facilities to ensue they're able to meet consumer demand. He notes when you look at where GM is allocating its money, it's a good sign that the company is investing in its large utility platforms that have been seeing increased demand. For now, Gutierrez explains why he believes automakers will continue to invest in existing facilities instead of new ones.