Friday 21 November 2014

GM invests $200m in two Michigan plants

General Motors will invest US$200 million in its Orion Assembly and Pontiac Metal Centre plants to prepare for a future vehicle programme – but there will be no new jobs.

Orion will receive $160 million for tooling and equipment, and Pontiac will receive $40 million for new dies.

These investments are part of the nearly $300 million in Michigan-based investments that GM chief executive officer Mary Barra referred to in her speech at the Detroit Economic Club on 28 October.

“Today’s announcement is a shot in the arm for these two terrific plants known for their teamwork and employee engagement,” said Cathy Clegg, GM North America Manufacturing vice president. “We’re committed to growing our brands and producing the highest-quality and safest vehicles for our customers.”

While no new jobs will be created by these actions, this announcement brings the total investment in Orion Assembly and the Pontiac Metal Centre to $775 million since 2010. Across the US, GM has announced facility investment of nearly $11.4 billion since June 2009.

“I’m confident that our members represented by UAW Locals 5960 and 653 will bring the same hard work and quality as they always do to the new vehicle program,” said UAW vice president Cindy Estrada, who directs the union’s GM Department. “UAW members are proud to be an integral part of an industry turnaround that makes investments such as this possible and an opportunity to show the success we can achieve when we work together.”

In 2010, General Motors announced a $545 million investment in Orion Assembly, the 4.3 million-square-foot facility in Orion Township, Michigan to launch the Chevrolet Sonic and Buick Verano. Kelley Blue Book recently named the Sonic one of the “10 Best Back-to-School Cars of 2014 and the Verano “2014 5-Year Cost to Own Awards: Best Entry-Level Luxury Car.”

"This major investment by GM underscores Michigan's leadership in the automotive industry and reflects a broad-based confidence among job providers that our state is the place to do business," said Governor. Rick Snyder. "We appreciate GM's on-going contributions to Michigan and will continue our work to create an environment that keeps the economy driving forward."

Orion Assembly, located approximately 30 miles north of Detroit, was the first GM facility to receive the Clean Corporate Citizen designation by the State of Michigan.

The Pontiac Metal Centre, located in Pontiac, Michigan is a 1.2-million-square-foot facility that stamps metal parts for 20 different vehicle models. Pontiac recently earned the U.S. Environmental Protection Agency’s Energy Star Challenge for Industry, one of only two GM plants in the world to meet the challenge three times.

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