Automobile manufacturer General Motors will be investing tens of millions of dollars into increasing wages and upskill workers at one of its major manufacturing plants located in Kansas as it prepares for the release of three major vehicles. The new investment will provide support for the careers of workers at the Fairfax Assembly plant located in Kansas City, which the company has described as “the forefront of its latest manufacturing innovations.”
General Motors also said that their investment will help get the facility prepared for the launch of three new vehicles, while also keeping its focus on pouring resources into its workforce and making American-made cars more competitive. The Fairfax Assembly plant is currently making the Chevrolet Bolt, which is an electric vehicle. It will also begin production on a gas-powered Chevrolet Equinox, along with a next-generation Buick compact SUV.
All of this innovation and expansion came with a hefty price tag for GM, as it recently took a multibillion-dollar charge connected to adjusting its electric-vehicle strategy. GM then reported that its net income attributable to stockholders was $2.7 billion with an EBIT-adjusted $12.7 billion. The company’s fourth-quarter net income was reduced by more than $7.2 billion due to special charges that GM said were due to changes in its EV capacity and investments, as it sought to adjust for anticipated declines in demand for electric vehicles.
According to Fox Business, several policy changes made by the Trump administration, such as the trashing of tax credits given to consumers who buy electric vehicles, along with changes that will reduce regulations placed on vehicle emissions, are big contributors to the change in demand. The Detroit automaker went on to say that its decision to invest in Fairfax is also due to its belief that if it wants to be competitive in the industry, it needs to pour into their workforce, the backbone of their success.
The company stated they see having highly-skilled adaptable workers is just as important to their success as having top-of-the-line modern equipment, especially with how quickly technology changes and advances. Much of the cash being infused into the Fairfax plant will be dedicated to helping employees learn and develop new skills for more advanced roles so they are able to keep up with new technology as it is developed.
“The investment in people isn’t just about preparing for the production of new vehicles; it’s about giving our people the opportunity to build a future their families can be proud of,” Fairfax plant director Michael Youngs explained. General Motors has already put $500 million into U.S. manufacturing apprenticeships and upskilling programs over the last five years. It’s currently training 2,000 workers a year in advanced manufacturing, electrification, and emerging technologies at its Technical Learning University located in Warren, Michigan.
GM also invested $66 million in higher education over the last half-decade to assist employees in the pursuit of various certificates and degrees. The automaker stated that they are making all of these investments as part of their long-term commitment to providing support for their current workforce, but also for future employees as they enter into the industry.
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