GM to invest $163Mil to boost production at Michigan, Ohio plants

Article by Christian Andrei, on November 26, 2010

To boost the production of engines for the Chevrolet Cruze, the Chevy Volt and an unnamed new small car, General Motors Co. is planning to invest $163 million at plants in Michigan and Ohio.

In a statement, GM said that the investments would save 184 jobs at the facilities, including an engine plant in Flint, Mich.; a components plant in Bay City, Mich.; and a casting plant in Defiance, Ohio.

GM aims to boost production of a 1.4-liter engine used in the Cruze compact car and a variation on that engine featured in the Volt plug-in hybrid at the Flint plant. GM anticipates that in early 2011, it will start producing 400 engines each day at the Flint plant, increasing this number to about 800 each day by late 2011.

With this added investment, GM is able to raise production capacity to 1,200 engines each day by late 2012. The Cruze is being assembled in Lordstown, Ohio.

Meanwhile, the Volt is being produced at its plant that is located between Hamtramck, Mich., and Detroit. It intends to produce the new small car at a plant in Orion, Mich., situated north of Detroit.

The UAW has and will continue to play a key role in GM’s revival,” said Terry Everman, UAW Local 599 chairman. “Our members have demonstrated that they are more than capable of building the latest and greatest in technology that will power some of the most fuel-efficient vehicles in the market.”

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