General Motors (GM) is to invest $5.4 billion in US plant improvements
over the next three years, including $783.5 million for three
Michigan facilities.
The Pontiac Metal
Centre will see $124 million invested while two other investments include $520
million for tooling and equipment for future new vehicle programmes at the
Lansing Delta Township assembly plant (retaining 1,900 jobs) and $139.5 million
for a new body shop and stamping facility upgrades at pre-production operations
in Warren.
Observers speculate
that some of Pontiac Metal Centre's investment could be linked to a new press.
GM has revealed that the $32 million project would include $30.3 million for a new
press-bay addition expected to add 15 new jobs within two years after
completion.
The Lansing Delta
Township plant builds Buick Enclave, Chevrolet Traverse and GMC Acadia SUVs –
all due for next-generation models within the next few years. Late last year,
GM announced a $63 million expansion at the plant, including new robots and flexible
tooling in the body shop, in assembly and the paint shop
GM executives say
they will announce the remaining $4.6 billion of the $5.4 billion and identify the
plants involved over the next several months.
All of the
investments announced today refer to body plants. It is possible that upcoming
investments could include investment on powertrain.
“The common thread
among our investments is the focus on product improvements that benefit
customers,” claimed Cathy Clegg, vice president of GM North America
Manufacturing. “Together with our UAW partners, we’re working hard to exceed
consumers’ ever-increasing quality expectations.”
All major body
panel dies will be pre-tested in Pontiac under regular production conditions,
enabling stamping plants to produce quality parts in shorter time;
pre-production vehicles in Warren will surface issues long before regular
production begins; and new products in Lansing will be among the best the
company has built, she said.
The $5.4-billion
new investment is equivalent to GM investing in US operations at the rate of about
$5 million a day or $150 million every month for the next three years.
Since June 2009, GM
has announced US facility investment of approximately $16.8 billion. About
$11.4 billion of that has come since the 2011 UAW-GM National Agreement. In
total, these investments have created 3,650 new jobs and secured the positions
of approximately 20,700 others.
“By working
together, the UAW and GM are making a difference in communities across the
United States,” declared UAW vice president Cindy Estrada, who leads the
union’s GM Department. “These investments represent the power of our collaboration
to create jobs and improve competitiveness, quality and our manufacturing base
in this country.”
GM and the UAW are
due to begin a round of crucial pay negotiations shortly for the next four-year
contract, hence today’s investment announcement ahead of those talks which are
usually tied in with contract periods.
GM has been pushed
into making investments, not only because of the forthcoming UAW talks but
other automakers have been making prolific investments, most notably Ford.
“These (GM) 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,” noted GM North America president Alan Batey.
GM chief executive officer
Mary Barra and Batey were expected to visit GM's Fairfax Assembly Plant in Kansas
City, Kansas, on Monday, to make announcements involving Fairfax, GM and
customers. The plant will be build the next-generation Chevrolet Malibu due
later this year and for which the plant is receiving $174 million for plant and equipment. In the actuality, Barra's visit turned out to be an anti-climax. She used the occasion to congratulate workers on the global production of the 500 millionth GM vehicle. GM claims it is the first car manufacturer in the world to achieve this. The occasion coincides with Vauxhall in the UK celebrating 90 years of ownership by the US company. In 2015, Barra said GM expects to sell over 1,000 new vehicles every day.
Meanwhile, last
December, GM said it would spend $5 billion in Mexico over the six years from
2013 to 2018, adding 5,600 new jobs in the region, including 4,400 so far not
announced. At the time, GM said $1.4 billion had been announced or implemented
and $3.6 billion would be forthcoming over the next four years.
Earlier this year,
GM claimed it planned to boost capital spending in 2015 to $9 billion, up from
$7 billion spent in 2014.
GM’s chief
financial officer Chuck Stevens has already promised GM would boost spending,
including for next-generation Chevrolet Malibu and Chevrolet Cruze sedans, next
generation compact and midsize crossovers and new Cadillacs.
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