GM to invest $2 billion in U.S. plants
May 11, 2011 — General Motors (GM) on Tuesday announced plans to invest $2 billion in U.S. assembly and component plants, adding or preserving 4,000 jobs at 17 facilities in eight states.
GM Chairman and CEO Dan Akerson said the move was in addition to $3.4 billion invested and 9,000 jobs added or saved since mid-2009.
“We are doing this because we are confident about demand for our vehicles and the economy,” Akerson said.
He said about $250 million would go toward the development of a new eight-speed transmission that would improve performance and fuel economy. Another $131 million will be put toward plant improvements and new equipment in Bowling Green, Ky., for production of the next generation Corvette. Other specific facility announcements will be made during the next few months, GM said.
The investments could eventually result in the addition of $2.9 billion to the U.S. Gross Domestic Product and create or keep 28,000 jobs, according to the Center for Automotive Research.
Joe Ashton, vice president of the GM department of the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW), said the investment is a good sign for membership.
“If the market continues to recover, we are confident that GM will hire new workers to meet the strong demand for the products our UAW members build," Ashton said. “I am proud of how our membership has worked hard to ensure the company's success.”
GM’s sales through the first four months of the year are up nearly 25 percent compared to 2010 and the automaker recently reported its fifth consecutive profitable quarter since emerging from bankruptcy in 2009.