GM announces $2 billion investment in U.S. plants
The automaker aims to save or create more than 4,000 jobs at 17 of its facilities in the U.S.
General Motors Co. announced it will invest about $2 billion in U.S. assembly and component plants, creating or preserving more than 4,000 jobs at 17 facilities in eight states.
“We are doing this because we are confident about demand for our vehicles and the economy,” GM Chairman and CEO Dan Akerson said. “This new investment is on top of $3.4 billion and more than 9,000 jobs that GM has added or saved since mid 2009.”
Akerson said GM will invest $204 million to retain about 250 jobs for an all-new, advanced 8-speed automatic transmission for future vehicles.
GM’s U.S. sales through the first four months of the year are up 24.8% over 2010, and the company last week reported its fifth consecutive profitable quarter since emerging from bankruptcy reorganization in July 2009.
"The UAW's goal has been to return all laid-off workers to active status and see the company begin hiring again,” said Joe Ashton, United Auto Workers (UAW) vice president – GM Department. “These announcements will create and retain thousands of jobs and bring General Motors back to full employment of our hourly workforce."
The first of the new investments, $131 million and about 250 additional jobs in Bowling Green, Ky., was announced last week. Plant improvements and installation of new equipment to make the next generation Chevrolet Corvette will begin soon while the current-generation Corvette is assembled for at least the next two model years.
Over the next few months, GM will make specific facility investment announcements dependent on successful completion of state and local incentives in some communities. According to the nonprofit Center for Automotive Research, the ripple effect of the planned investments would add almost $2.9 billion to the U.S. Gross Domestic Product and create or retain more than 28,000 jobs.
According to a CNNMoney report, since emerging from bankruptcy in June 2009, GM has invested $3.5 billion to create or retain jobs. The automaker has benefited from the combination of drastic cost reductions and an improved, leaner product line-up.