GM is feeling good about the economy and its prospects. Case in point: The automaker today announced that it plans to invest $2 billion in its U.S. assembly and component plants.
The dollars will create or keep more than 4,000 jobs at 17 facilities in eight states, according to the automaker. "We are doing this because we are confident about demand for our vehicles and the economy," GM Chairman and CEO Dan Akerson said during an event at the 54-year-old Toledo (Ohio) Transmission Plant. "This new investment is on top of $3.4 billion and more than 9,000 jobs that GM has added or saved since mid-2009." Akerson said GM will invest $204 million in the Toledo facility for an advanced eight-speed automatic transmission for future vehicles, retaining approximately 250 jobs.
|GM employee Coianne Avant works on the assembly line at the Toledo Transmission Plant, where GM today announced a $2 billion investment in U.S. assembly and component facilities.|
GM's U.S. sales through the first four months of the year are up 24.8% over 2010, and the company last week reported its fifth consecutive profitable quarter since emerging from bankruptcy reorganization in July 2009. "The UAW's goal has been to return all laid-off workers to active status and see the company begin hiring again," said Joe Ashton, UAW vice president-GM Department. "These announcements will create and retain thousands of jobs and bring General Motors back to full employment of our hourly workforce." GM announced the first of the new investments$131 million and about 250 additional jobs in Bowling Green, Ky.last week. Plant improvements and installation of new equipment to make the next-generation Chevrolet Corvette will begin soon, while the current-generation Corvette is assembled for at least the next two model years, according to the automaker. Over the next few months, GM will make specific facility investment announcements dependent on successful completion of state and local incentives in some communities. Union Cooperation Critical According to the nonprofit Center for Automotive Research, the ripple effect of the planned investments would add almost $2.9 billion to the U.S. GDP and create or retain more than 28,000 jobs. "If the market continues to recover, we are confident that GM will hire new workers to meet the strong demand for the products our UAW members build," Ashton said. "I am proud of how our membership has worked hard to ensure the company's success." Akerson said working in partnership with the UAW is essential to GM's success. "Nobody builds them more fantastic than you do," Akerson told the employees in Toledo. "We need you and the rest of our teams at all our facilities to keep working hard and keep being the best." See Also: