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GM Dropping $5.4 Billion in Plants in Next Three Years

Automaker kicks off plan with $800M in three Michigan facilities.

by on Apr.30, 2015

GM's Alan Batey announced the maker will invest $5.4 billion in plants over the next three years, including $783.5 million for three Michigan facilities.

With its Pontiac Metal Center as the backdrop, General Motors officials announced plans to invest $5.4 billion into its facilities around the world during the next three years.

The maker is starting with $783.5 million at three plants in Michigan, beginning with $124 million for the aforementioned metal center in Pontiac, Michigan, which pre-tests all major body panel dies under regular production conditions. The process allows stamping plants to produce production-ready parts more quickly.

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Additionally, the company is investing $520 million in tooling and equipment for future programs at its Lansing (Michigan) Delta Township plant. The move keeps 1,900 jobs at the site. GM is investing $139.5 million in a new body shop and for stamping facility upgrades at its Warren, Michigan-based Pre-Production Operations center.

“These investments are evidence of a company on the move, strategically investing in the people, tools and equipment to produce cars, trucks and crossovers that are built to win in the marketplace, with stunning design, quality and breakthrough technologies,” GM North America President Alan Batey said.

Greg Middleton marries the chassis to the body of a 2015 Buick Enclave at GM's Lansing Delta Township plant that will get $520 million in new investments.

While the company touted the first bit of cash doled out, it declined elaborate on how the rest of the money – $4.6 billion – will be invested, saying that details would be revealed in the months ahead.

(GM wants bigger plant to make bigger SUVs. For more, Click Here.)

It’s unclear if the plans include an expected expansion of the automaker’s plant in Arlington, Texas, which produces Chevrolet Suburbans and Tahoes, GMC Yukons and Cadillac Escalades.

(Click Here for details about GM’s new Texas stamping plant.)

The tentative plans, which haven’t been confirmed by GM, call for adding 1.2 million square feet of space to the plant, adding 589 jobs. The plant currently employs 4,125, more than the required level, the city said. GM has filed a petition with the city government in Arlington asking for tax abatement of 80% for 10 years on the expanded plant and its equipment and waiving building permit and development fees.

(To see more about GM dismissing the notion of a merger with FCA, Click Here.)

GM could spend $307 million on the physical expansion and $986 million on new equipment, according to the city of Arlington’s website, and construction could begin sometime later this year.

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One Response to “GM Dropping $5.4 Billion in Plants in Next Three Years”

  1. Jorge says:

    It’s nice to see a few U.S. jobs being created.