General Motors recently announced that it will spend over $900 million to update four of its major factories. Most of the expenditure will be allocated to a Flint, Michigan plant where the next generation V8 engines will be built for the motor company’s SUV’s and pickup trucks.
The other factories that are receiving investments are located in Rochester, New York; Defiance, Ohio; and Bay City, Michigan. All factories will focus on V8 engine components as well as parts for upcoming productions of electric vehicles.
The Associated Press reported:
The investments won’t create any new jobs, but they will preserve about 2,400 hourly and salaried positions positions at the four sites, the company said.
Much of the money, $579 million, will go to Flint Engine Operations for equipment to build the sixth-generation small-block V8 that will go into the next round of big pickup trucks and SUVs. The plant now employs about 700 people who also will keep making their current product, a diesel engine used in light trucks.
General Motors executive vice president of Global Manufacturing Gerald Johnson, “These investments, coupled with the hard work and dedication of our team members in Flint, Bay City, Rochester and Defiance, enable us to build world-class products for our customers and provide job security at these plants for years to come.”
The Detroit Free Press reported on the business plan:
GM said of the $918 million, $854 million will go to prepare the facilities to make GM’s sixth-generation small block V-8 engine used in the Chevrolet Camaro, light duty pickups and large SUVs. An additional $64 million will be invested in Rochester Operations in Rochester, New York, and Defiance Operations in Defiance, Ohio, plants to make castings and components to support GM’s EV production.
Flores also said these investments will help GM strengthen its full-size pickup and SUV business because this new V-8 engine will give GM vehicles a performance edge in what is a competitive market segment. GM’s pickup and SUV sales are key to GM’s profits and help to fund GM’s development of EVs as the company looks to transition to a zero-emissions lineup by 2035. GM said in a media release that “product details, timing, performance and features related to GM’s next gen V-8 engine are not being released at this time.”
General Motors has been steadily investing in its domestic manufacturing. Last year GM announced a $7 billion investment in Michigan which would create 4,000 new jobs and retain 1,000. The goal of this investment is to provide the motor company an edge in the electric vehicle market.
A company announcement stated:
General Motors Co. (NYSE: GM) announced today an investment of more than $7 billion in four Michigan manufacturing sites, creating 4,000 new jobs and retaining 1,000, and significantly increasing battery cell and electric truck manufacturing capacity. This is the single largest investment announcement in GM history. The investment includes construction of a new Ultium Cells battery cell plant in Lansing and the conversion of GM’s assembly plant in Orion Township, Michigan for production of the Chevrolet Silverado EV and the electric GMC Sierra, GM’s second assembly plant scheduled to build full-size electric pickups.
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