General Motors Co. GM announced that it will make an investment of $119 million at its Grand Rapids Operations plant. The investment will be utilized for tools and equipment, which will aid the production of vehicle components at the plant in the future. With this, the automaker will also create 300 new jobs.
The Grand Rapids Operations plant manufactures different precision-machined automotive engine components which are used in Chevrolet, Buick, GMC and Cadillac vehicles. The plant currently employs 500 workers in three shifts. This investment reflects General Motors’ collaboration with its UAW partners to introduce innovations and offer substantial benefits to customers.
General Motors is focused on making investments in innovative technologies and vehicles, which should provide sustained growth while maximizing shareholder value. In Apr 2015, the company announced that it will invest $5.4 billion for the improvement of plants in the U.S. over the next three years. The investment in the GM Components Holdings, LLC plant is part of this plan. As of now, the company has already made an investment proposal of approximately $3 billion.
General Motors had earlier announced plans of hiring 650 new workers. Thus, the creation of these 300 new jobs accounts for almost half of its commitment.
In May 2015, General Motors declared that it will make an investment of $1.2 billion for new facilities and technology at the Fort Wayne factory in Indiana. Further, in the same month, the automaker announced that it intends to invest $1 billion in its Warren Technical Center campus. For this investment, which involves the expansion of its operations, General Motors will be hiring 2,600 new workers.
In addition, General Motors plans to invest $783.5 million in three Michigan facilities. Of this, $520 million is for tooling and equipment, which will be used in future new vehicle programs at the Lansing Delta Township assembly plant; $139.5 million is meant for a new body shop and stamping facility upgrades at pre-production operations in Warren; and $124 million will be invested in the Pontiac Metal Center. The investment will be used for manufacturing cars, trucks and crossovers with improved design, enhanced quality and advanced technologies.
The automaker also outlined certain other plans related to its total investment. General Motors intends to spend $439 million to upgrade the Bowling Green, KY factory where it produces Chevrolet Corvette. Next, the company plans to spend $174 million for new equipment and technology at a Kansas City, KS plant. This investment will be used for the production of 2016 Malibu midsize sedan.
General Motors currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the auto industry include American Axle & Manufacturing Holdings Inc. AXL, Lear Corp. LEA and PACCAR Inc. PCAR, all carrying a Zacks Rank #2 (Buy).
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