GM to Invest $47m in Defiance Powertrain Plant
The automaker will use to investment to purchase tooling and equipment for the Ecotec 1.4L engine and next-generation of small block car and truck engines.
The investment is part of $2 billion that GM has announced to invest the US in May 2011 for 17 facilities in eight states. This investment builds on the $3.4 billion invested and 9,000 jobs created or retained in the US since mid-2009.
The Defiance powertrain plant was opened in 1948 and manufactures 5.8 million parts annually. Currently, the plant has 1,277 hourly and salaried employees.
Arvin Jones, manufacturing manager at GM, said: â€œThis investment reflects the growing demand for fuel-efficient vehicles, such as the Chevrolet Cruze, Volt and the all-new Sonic. The products produced here will help our customers deal with rising fuel prices.
â€œWe appreciate the tremendous support we have received from the Defiance community over the years. This investment is possible because of the teamwork between GM, the UAW, the Defiance community and the great State of Ohio.â€
Joe Ashton, vice president of UAW for GM Department, said: â€œThe members of UAW Local 211 have played an active role in building a strong partnership with management at the Defiance plant. It is in places like Defiance that GM should be investing so that the American dream of living a middle-class lifestyle can be fulfilled.â€
In May 2011, GM has invested $131m in the Bowling Green Assembly plant to support production of the next generation Chevrolet Corvette, and added about 250 jobs.
With its global headquarters in Detroit, GM employs 202,000 people in every major region of the world and does business in more than 120 countries. GM and its strategic partners manufacture cars and trucks in 30 countries, and sell and service vehicles of the brands that includes - Baojun, Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Isuzu, Jiefang, Opel, Vauxhall, and Wuling.
Will the investment commercially benefit the firm?
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