GM Invests $129m in Ohio and Indiana Plants
GM is investing in these plants for second time since May 2011, and the total investment has increased to $287m at plant in Toledo, Ohio and $81m at Indiana plant.
The investment is part of $2 billion that the firm has planned to invest in 17 facilities in eight states over the next 18 months and will create or retain 4,000 jobs.
Previously, the Toledo plant was targeted for a $204m investment, and will get additional investment of $83m to enhance its six-speed transmission that was already produced in the plant.
The six-speed transmission will be used in the Buick Lacrosse that is set to launch in this fall and also in the 2013 Chevrolet Malibu that will debut early 2012. The new investment will add or retain 30 jobs at the plant that employs about 1,600 people.
GM has said to invest $49m in Bedford plant, and has received $32m to enhance the die-cast case and torque converter on the six-speed transmission assembled in Toledo. The plant has 405 employees and remains unchanged with the investment.
Apart from the above investments, GM will invest $15m to $20m at its components holding plant in Wyoming, Michgan that supports various powertrain projects. The investment will retain 60 jobs.
Cathy Clegg, vice president of labor relations at GM, said: â€œGM continually assesses its product offerings and makes adjustments to meet consumer demand. GM is moving quickly to get more fuel-efficient technologies into our vehicles to benefit the consumer, and these investments are an example of the speed with which we are responding.â€
In June 2011, GM has said to invest $49m to purchase tooling and equipment for the Bedford powertrain plant to produce components for 8-speed transmission and a future small engine program. The investment will create or retain 91 jobs.
GM and its strategic partners produce cars and trucks in 30 countries, and sell and service these vehicles through the following brands - Baojun, Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Isuzu, Jiefang, Opel, Vauxhall, and Wuling. Its national market is China, followed by the US, Brazil, the United Kingdom, Germany, Canada, and Italy.
How far the move benefits the firm?
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