GM earmarks $1.3 billion to upgrade five plants

Article by Christian Andrei, on December 17, 2013

General Motors will spend $1.3 billion to upgrade two Michigan assembly sites and three powertrain plants, including retooling for a new 10-speed transmission. According to GM, the investment would result to the creation or retention of 1,000 jobs. “GM is committed to a strong American manufacturing base and creating jobs in dozens of communities throughout the country,” Mark Reuss, GM’s president of North America, said in a statement.

He remarked that the announced plant upgrades “continue the momentum of a resurgent auto industry,” adding that they add up to higher quality and more fuel-efficient vehicles for customers. GM will disclose details about the 10-speed transmission in the near future.

The carmaker inked an agreement in April with Ford Motor Co. to jointly develop nine- and 10-speed transmissions, which are expected to help improve fuel economy and performance in future vehicles. The investments include $600 million on a new paint shop and other upgrades at Flint Assembly site, which builds light-duty and heavy-duty pickups.

It also includes $121 million on a logistics optimization center at Detroit-Hamtramck Assembly site, which produces the Chevrolet Impala, Malibu and Volt.

The investments also cover $493.4 million at its Romulus powertrain plant for equipment to build a new 10-speed transmission and to hike capacity of a previously announced V-6 engine. The investment is in addition to a recently commenced $390 million retooling project at the site.

GM will spend $30.6 million on its Toledo Transmission Operations in Ohio to increase capacity for a six-speed transmission and tooling for a new variant. The carmaker will spend $29.2 million at its Bedford Castings in Indiana to build components for the 10-speed and six-speed gearbox. [source: GM]

Topics: gm

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