General Motors Invests in US Manufacturing

Joe Weinlick
Posted by in Manufacturing


In the middle of December 2013, General Motors announced it would be investing almost $1.3 billion in its United States operations. The money, which will go to different GM manufacturing plants in the Midwest, is intended to boost output and enable plants to manufacture new, energy-efficient engine components. The news is an indication that US manufacturers are starting to rebound from the recession and commit themselves to putting out more fuel-efficient vehicles.

For people in the manufacturing industry, GM's investment is welcome news. Since the United States economy bottomed out several years ago, automotive professionals have faced serious concerns about the future of the industry. After years of an uncertain job market, the GM investment is a sign that things are looking up.

The investment will go to five GM manufacturing plants in Indiana, Michigan, and Ohio and will enable the company to create or keep 1,000 positions, benefiting the cities of Detroit, Flint, Romulus, Toledo, and Bedford. The largest portion of the funds will be spent in the plant in Flint, Michigan, which puts out a number of large trucks, including the GMC Sierra and Chevy Silverado. The plant, which is the oldest assembly facility among the GM manufacturing plants, will receive a much-needed upgrade.

In the five GM manufacturing plants, the money will be used to increase the production of a new V6 engine, manufacture a new ten-speed transmission, and boost the production of a six-speed transmission that is already being manufactured by the company. Other planned projects include the construction of a logistics center and a paint facility. The planned transmissions and engines will be manufactured with an eye toward fuel efficiency, indicating GM is making strides to stay competitive in an increasingly environmentally focused industry.

The news of GM's investment is a much-needed image boost for the GM manufacturing plants. In 2008, the company was hit so strongly by the economic crash that it required an enormous amount of government assistance. The GM leadership has been careful to point out, however, that the company has been making large manufacturing investments since 2009.

Like many US manufacturers, GM is restructuring its worldwide operations to better fit the slowly growing national economy. The international focus comes at a good time; according to a recent story in The New York Times, the company's joint venture in China recalled 1.46 million cars in China for safety issues. GM also plans to eliminate the Chevrolet brand in Europe and cease production in Australia by 2017.

For auto industry workers in the Midwest, GM's investment announcement indicates the company is finally bouncing back from the economic recession. As the company seeks to improve GM manufacturing plants around the country, it is expected to provide a positive boost to local and national economies.

 

(Photo courtesy of freedigitalphotos.net)

Comment

Become a member to take advantage of more features, like commenting and voting.

Jobs to Watch