General Motors Company (GM) to invest almost $1.3 billion to upgrade 5 plants
General Motors Company (NYSE:GM) will be investing nearly $1.3 billion in five manufacturing sites in Michigan, Ohio, and Indiana for producing new fuel-efficient engines and transmissions. The plants will also enhance vehicle quality and for streamlining logistics. All of these investments combined will create or retain around 1,000 jobs.
The investment was announced on Monday at GM plants in Detroit, Flint and Romulus, Michigan; Toledo, Ohio; and Bedford, Indiana. It will support production of a new V6 engine, new 10-speed transmission, and existing 6-speed transmission. The funds will also support assembly plant upgrades.
GM has announced investments of around $10.1 billion in their U.S. operations since 2009. Around $2.8 billion was committed in 2013 alone. This helped created and retain over 26,500 jobs.
“GM is committed to a strong American manufacturing base and creating jobs in dozens of communities throughout the country. Today’s announced plant upgrades continue the momentum of a resurgent auto industry,” stated GM Executive Vice President and North America President Mark Reuss. “More importantly, these investments add up to higher quality and more fuel-efficient vehicles for our customers.”
The $1.3 billion investment will be used for:
– $600 million in Flint Assembly for facility upgrades (new paint shop)
– $493.4 million in Romulus Powertrain Operations, including $343.4 million for building equipment to produce an all-new 10-speed automatic transmission and $150 million to increase capacity of a new V6 engine
– $121 million in Detroit-Hamtramck Assembly for a logistics optimization center
– $30.6 million in Toledo Transmission Operations for increased capacity for 6-speed transmission and new variant tooling
– $29.2 million in Bedford Castings, including $22.6 million to produce 10-speed transmission components and $6.6 million to produce 6-speed transmission components
[Source: GM Media]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry