Boston, MA 10/15/2013 (wallstreetpr) – As the workers go about their daily work, one can come to appreciate the buzz and activity at the new stamping plant of General Motors that is based at Arlington, Texas. A stamping machine does the work of applying about 200 tons of pressure on a sheet of metal and instantly molding it into an automobile spare part. This facility is added as a feather in the company’s cap since it is a new addition to its already existing plant in North Texas. It enables to produce components like fenders, doors and hoods at a rate of one per ten seconds.
The plant has already started functioning and has about 180 employees working round the clock shifts. On Monday, October 14, 2013, the company executives along with the governing officials of the locality came together for the official inauguration of the plant. This division has already started rolling out spare parts for the sports and utility vehicles of General Motors that are to be launched in 2015.
Cost Impact for the company
Keeping in view the cost of transportation from other states to the Texas plant, the company has decided to open its own stamping plant at the place of manufacture at a whopping cost of $200 million. Executive vice president of global manufacturing, GM and chairman of GM China, Tim Lee, stated that the company was saving $40 million transportation costs by opening up this facility. Else they would have to transport these components from Tennessee, Ohio and Indiana.
Stock Impact for the company
General Motors opened today at a low $34.84 after a day close of $35.35 on October 11. This can be attributed to the bad press of recalling GM Trucks. But gradually the price increased and at end of day of October 14, it closed at $35.33.
