On Thursday, General Motors Company (NYSE:GM) announced plans to invest $5.4 million in its production plants in the USA in an effort to raise its production levels as well as the quality of its vehicles.
The company’s manufacturing chief executive from the North American branch, Cathy Clegg said that the company will focus on improving the products. She also noted that the investment would be important as it would create new jobs as well as assisting in the retention of existing ones. Cathy reported the project the projections at 650 new jobs and 15000 retained jobs.
The announcement was made at an opportune time, as General Motors was making preparations to meet with the United Auto Workers union. The meeting will be based on the making of a new contract focused on the welfare of over 50,000 hourly workers in the USA. The union leaders have compelled GM to invest in the factories that are represented by unions.
GM’s capital global spending for this year is estimated at 9 billion compared to last year’s budget of 7 billion. The budget is mostly allocated towards the incorporation of new technology and the costs of vehicle launch activities.
The acclaimed automobile maker has allocated almost $784 million from the investment budget to three plants that are located in Michigan. The company officials announced that they will release the details of how the remaining amount will be spent within the next few months.
General Motors Company (NYSE:GM) announced that $520 million will be allocated to tools and equipment that will be distributed to production processes for new vehicle models. The amount will go to the Lansing Delta assembly factory. A new body shop facility that was recently set up in Michigan will receive $139.5 million while the Pontiac stamping plant in Michigan will get $124 million.
The automotive company has not yet confirmed whether it will fully implement this investment. However, the officials have already given it the go ahead.
