General Motors Company (GM) announced that it will be investing $1.3 billion in 5 manufacturing plants located in 3 states of the U.S. The automaker will be using the investment for producing new fuel-efficient engines and transmissions and to upgrade assembly plants.
The five manufacturing plants in which General Motors will be investing include; assembly plants in Flint and Detroit and an engine plant in Romulus, Mich., a transmission factory in Toledo, Ohio, and a casting plant in Bedford, Ind.
General Motors intends to invest $600 million in the Flint Assembly plant which produces Chevrolet Silverado and GMC Sierra pickup trucks; 493.4 million in Romulus Powertrain Operations, $121 million in Detroit-Hamtramck Assembly, $30.6 million in Toledo Transmission Operations and the remaining $29.2 million will be invested in the Bedford Castings plant.
Using the investment, General Motors will be producing a new V6 engine, a new 10-speed transmission and a 6-speed transmission. The automaker also plans to use the funds for upgrading the assembly plant in Flint by opening a new paint shop and the Detroit-Hamtramck Assembly plant by adding a logistics optimization center.
This new investment is expected to support the production of better quality and fuel-efficient vehicles for customers. It is anticipated to either create or retain 1,000 jobs.
Since 2009, GM has invested about $10.1 billion in its U.S. operations. In 2013 itself, General Motors made investments of $2.8 billion. With this, it created more than 26,500 jobs.
General Motors focuses on building a strong manufacturing base in America and employ numerous workers across the country. The United Automobile Workers also supports General Motors’s strategy to rebuild the nation’s economy, create better jobs in the country, and enhance manufacturing capacity of the U.S.
General Motors is one of the largest automobile producers in the world along with Ford Motor Co. (F), Honda Motor Co., Ltd. (HMC) and Toyota Motor Corp. (TM). Currently, General Motors has a Zacks Rank #3 (Hold).