GM Invests $5.4B to Modernize Factories
General Motors Company announced at the end of April of 2015 that it is investing USD$5.4 billion over the next three years to expand and upgrade its US production facilities. The goal of this most recent investment is to put the domestic factories in a better position to handle upcoming new models that GM is expected to release in the next few years as well as securing jobs.
So far, details for only a fraction of the investment have been released, with USD$783.5 million heading to three Michigan plants: the Delta Township assembly plant will receive $520 million for new tools and equipment, the Warren facility will receive $139.5 million for expansion purposes and the Pontiac Metal Center will receive $124 million.
Alan Batey, president of GM North America, said in a statement: “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.” According to GM, the $5.4 billion breaks down roughly to an investment of $5 million per day or $150 million per month over the next three years. Details on what the remaining $4.6 billion will be used for are expected to be released over the next couple months.
Cathy Clegg, GM’s head of North American manufacturing said in a statement: “The common thread among our investments is the focus on product improvements that benefit customers.” Since 2009, General Motors has invested almost $17 billion in its US factories. General Motors led global vehicle sales for 77 consecutive years from 1931 through 2007, which is longer than any other automaker.
The company is currently among the world's largest automakers by vehicle unit sales. The company plans to build a fully electric car for the 2017 model year called the Bolt with a 200-mile range and a price of $37,500 before the tax credit. Headquartered in Detroit, Michigan, General Motors Company is an American multinational corporation that designs, manufactures, markets and distributes vehicles and vehicle parts and sells financial services.
General Motors produces vehicles in 37 countries under thirteen brands: Alpheon, Chevrolet, Buick, GMC, Cadillac, Holden, HSV, Opel, Vauxhall, Wuling, Baojun, Jie Fang, and UzDaewoo. General Motors acts in most countries outside the U.S. via wholly owned subsidiaries, but operates in China through 10 joint ventures. Their popular subsidiary, OnStar, provides vehicle safety, security and information services.
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Posted on May 6, 2015