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Thu April 4, 2013
4 GM manufacturing plants to get $332 million in upgrades
Two of the plants are in Michigan (Flint and Bay City), one in Toledo, and one in Bedford, Indiana.
The auto industry is working on squeezing more miles to the gallon out of the internal combustion engine, and that's what these investments are about.
The $332 million will go toward upgrading manufacturing plants to produce six and eight speed transmissions, small "Ecotech" engines, and a new V-6 engine.
GM recently announced that it will redesign, refresh or replace nearly 90 percent of its vehicles in the North American market between now and 2016.
In addition to the investments in Flint, Bay City, Toledo, and Bedford, IN, GM says it's also upping previously announced powertrain investments by $46 million. Plants in Romulus and Saginaw will see that investment.
From Ford's press release:
Since 2009, GM has announced nearly $1.8 billion of investments for the six Powertrain facilities.
“We are investing in technologies and manufacturing capabilities that produce high-quality, fuel-efficient vehicles and components for our customers,” said Diana Tremblay, vice president of GM North American Manufacturing. “Today’s announcement demonstrates GM’s commitment to growing the business and strengthening the plant communities where we receive so much support.”
GM says its investments won't lead to new jobs, but will retain 1,650 jobs at the facilities.
The plant in Flint will see the biggest investment. $215 million will be invested in the Flint Engine Operations plant for the 3 and 4 cylinder Ecotec gasoline engines.
Nathan Boomey of the Detroit Free Press reports Flint welcomes the news:
The investment marks a dose of good news for the Flint community after GM recently announced plans to shut down its Grand Blanc Weld Tool Center, displacing 343 employees...
“The investment we’re making is to obviously put in the required capacity or adjustment to the capacity to create more fuel-efficient products for our customers,” Jones said.
Boomey reports GM declined to reveal when the investments will occur, or what cars will receive the new engines and transmissions.
In their release, GM said the new "8-speed [transmissions] will be used in numerous GM vehicles by the end of 2016."