With profits from sales pouring in to the company, General Motors is stepping up its spending on re-tooling its factories, including more than $350 million at three plants in Michigan, the automaker announced.
GM is investing $356.4 million for upgrades, including in a new engine line in Flint and driveline and powertrain components equipment in Saginaw and Grand Rapids, creating more than 50 jobs and retaining nearly 500 other positions.
“These investments will better position GM and its work force to produce high quality engines and components for customers who demand greater fuel efficiency and performance from our vehicles,’ said Bill Shaw, GM North America Manufacturing manager.
Details pertaining to the engine programs and associated vehicles will be released at a later date.
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“The membership and leadership of Region 1-D are excited about this investment in our area and our work force,” said UAW Region 1-D Director Gerald Kariem. “These investments were earned with the quality and skill our membership brings to their jobs every day, and we appreciate GM giving us the opportunity to continue to prove the UAW work force is world class.”
The announcement raises GM’s announced U.S.-facility investment in 2015 to $7.1 billion, including $353.4 million spent in four other states recently: $127.4 million in Bedford, Indiana; $44 million in Bowling Green, Kentucky; $100 million in Defiance, Ohio; and $82 million in D-Max joint-venture plant in Moraine, Ohio that builds Duramax Engines used in trucks.
“This investment and job creation is a result of the hard work from our D-Max team and IUE-CWA Local 755, who have consistently demonstrated their commitment and dedication to building the best diesel engine possible for our customers,” said GM North America Manufacturing Manager Scott Whybrew.
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“The Duramax diesel’s performance is renowned in the industry, and these productivity improvements will allow us to become even more efficient in producing these world class engines.”
GM has been investing heavily in many of its plants since it started making investment announcements earlier this year. However, it has spent a fair bit of money in the company’s home state during the past six years.
Since 2009, GM has made investment commitments in Michigan of more than $9 billion. During this time period, GM has far exceeded its original investment commitment under the Michigan Economic Growth Authority (MEGA) Agreement. GM’s substantial investment in Michigan and the corresponding job growth and retention has contributed Michigan’s economic success since 2009.
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The Michigan investment announcements come on the same day as an amended agreement between GM and the Michigan Strategic Fund under the MEGA tax credit program. As part of the amended agreement, GM will invest $1 billion in Michigan by 2030. Today’s announced investment of $356.4 million represents more than one-third of that amount.