GM sign (Photo : Reuters)
General Motors (GM) has plans to invest $5.4 billion to modernize its United States plants during the next three years. The move will add about 650 jobs to its workforce.
GM and United Auto Workers (UAW) executives made the announcement at its Pontiac Metal Center. The plant will be receiving upgrades worth $124 million.
The location was symbolic as the plant was nearly closed due to GM's declaring bankruptcy in 2009. However, the Pontiac plant now has nearly 500 employees, and will add 15 more due to the upcoming investments, according to Detroit News.
GM gave details for about $785.5 million of the future investments on Thursday. In the following months the company will announce how the $4.6 billion balance will be spent.
This summer Detroit's automakers will start contract negotiations with the UAW union. GM is planning to move some factories to Mexico due the lower operating costs, but will also invest more in domestic production to satisfy the UAW, according to TribLive.
GM's investments will include $250 million for equipment used to produce new automobile models, at a plant near Lansing, Mich. Other domestic investments will include a body shop and metal stamping plant.
Cathy Clegg, GM's manufacturing Vice President, says that the "common thread" among its investments is improvements in its products. The goal is to "benefit" the company's customers.
GM reported that since it declared bankruptcy in June 2009, it had invested $16.8 billion in its U.S. factories. That move added over 3,650 jobs and saved 20,7000 positions.
In December GM announced its plans to spend $5 billion to update and expand its four auto factories in Mexico. GM spends $8 an hour for salaries and benefits in Mexico, while that figure is $58 in the U.S.
General Motors Corporation was founded in 2008, and following bankruptcy General Motors Company was founded in 2009. Its 2014 GM's revenue equaled $155.9 billion.
