Monday, December 16, 2013

GM Unveils $1.3B Investment in U.S. Manufacturing

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General Motors (GM) announced on Monday that it plans to invest nearly $1.3 billion in five U.S. plants, making a push to expand its domestic operations.
The nation’s largest automaker said the investment will create or retain 1,000 jobs. The Michigan, Ohio and Indiana plants currently employ about 7,500 people.
GM will pump money into a Romulus, Mich., factory to support the production of a new 10-speed transmission and increase capacity for a new six-cylinder engine.
The investment will also go toward a Detroit-Hamtramck facility, a castings plant in Bedford, Ind., and expanding capacity for a six-speed transmission at a Toledo, Ohio, plant.
Most of the investment, about $600 million, will be allocated for a truck factory in Flint, Mich., GM’s oldest auto assembly plant. The company expects to add a new paint shop and other upgrades to the facility.
The $1.3 billion plan brings GM’s total investments in U.S. facilities announced this year to $2.8 billion.
“Today’s announced plant upgrades continue the momentum of a resurgent auto industry,” Mark Reuss, GM’s outgoing North America president, said in a statement. “More importantly, these investments add up to higher quality and more fuel-efficient vehicles for our customers.”
GM has unveiled a slew of moves recently, starting with last week’s official exit of the U.S. Treasury Department from its position in the company.
Also last week, GM named Mary Barra as the first female CEO in the history of Detroit’s Big Three. Barra will replace Dan Akerson, who plans to step down ahead of schedule in January. Reuss will take on Barra’s current role as head of global product development.
On Thursday, GM disclosed that it sold its remaining stakes in French car maker PSA Peugeot Citroen and Ally Financial, GM’s former lending arm.
GM also said it plans to phase out its Chevrolet brand in Europe and cease manufacturing in Australia by 2017. Its Holden brand in Australia will continue as a sales company, parts distribution center and design studio.
Shares jumped 2.6% to $41.08 Monday afternoon. The stock is up more than 40% so far this year.
Follow Matthew Rocco on Twitter @MatthewRocco

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