GM to Invest $109m to Support Engine Production
The move is expected to add or protect 96 jobs at the two sites.
The company will invest $84m at Flint and $25m in Bay City. The Flint investment will increase 1.4-liter engine capacity and Bay Cityâ€™s investment for connecting rods and camshafts used in the engine.
According to GM, the Ecotec 1.4-liter turbocharged engine for the Chevrolet Cruze Eco model helps in achieving segment-leading EPA estimated 42 highway mpg. The 1.4-liter naturally aspirated engine enhances range extension for the Chevrolet Volt electric car.
Later in 2011, the 1.4-liter engine will be installed in the Chevrolet Sonic, which will be built at GMâ€™s assembly plant in Orion Township, Michigan.
In November 2010, GM has planned to invest $151m and protect 143 jobs at the Flint and Bay City plants. The latest investment is part of a $2 billion investment to create or retain more than 4,000 hourly and salaried jobs at 17 facilities in eight states.
In May 2011, GM has reported revenue of $36.2 billion for the first quarter of 2011, compared to $31.5 billion for the same period of 2010.
GM with its global headquarters in Detroit, employs 202,000 people in every major region of the world and does business in more than 120 countries. GM and its strategic partners produce cars and trucks in 30 countries.
Terri Burden, engine operations plant manager at Flint, said: â€œThis investment marks the second major increase in engine and engine component output in less than six months - a sign that GM is moving quickly to meet growing demand for more fuel-efficient cars.â€
Joe Mazzeo, plant manager at Bay City, said: â€œI am very excited on behalf of all of our employees here at the Bay City plant about our announcement today and very thankful for the cooperation and support from the community.
â€œThis announcement comes about in part because of our great team and the focus we place on delivering great products, an outstanding work ethic and an excellent working relationship between our union and management team.â€
Will the move commercially benefit the firm?
Have your say and discuss with your peers on the InfoGrok community.
Participate by posting your comments now.