According to a Reuters report, General Motors Co said on Monday that it plans to invest around $1.3 billion to improve its manufacturing output, add a vehicle paint shop, and make a new transmission at five US plants. The top automaker in the US reportedly said that the investment will go to plants located in Michigan, Ohio and Indiana and could retain or create a total of 1,000 jobs. However, GM was vague about the number of new jobs that could potentially be created with the investment. GM's plants in the US currently employs around 7,500 people.
The news agency noted that the investment is part of a typical $8 billion yearly investments GM makes on its operations worldwide. The $1.3 billion investment will be focused on a new V-8 engine and an existing 6-speed transmission, GM said in its statement.
GM North American President Mark Reuss said in a statement, "Today's announced plant upgrades continue the momentum of a resurgent auto industry. More importantly, these investments add up to higher quality and more fuel-efficient vehicles."
Reuters noted the size of investments GM had placed, indicating that it is doing better than it was in 2009, of which the US-company had filed for bankruptcy protection. With the help of its $49.5 billion U.S. taxpayer bailout, GM is seen to be making announcements of investments of over $10.1 billion in its operations in the US, including the $2.8 billion it has earlier announced this year.
$600 million from the $1.3 billion capital spending will go towards upgrades of its assembly plant in Flint, Michigan, where the heavy-duty Chevy GMC Sierra and Silverado and full-size pickup trucks are being built, including a new paint shop, said Reuters in its report. Over $493 million, on the other hand, will go towards purchases for new equipment in order to built a new 10-speed automatic transmission aside from increasing output of its new V6 engine that was announced previously, GM said.
Join the Conversation