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GM makes $109 million investment in U.S. factories

Automaker to increase production and keep jobs at two Michigan plants


May 16, 2011
by The Canadian Press

DETROIT—General Motors will invest $109 million in two Michigan operations, keeping or creating 96 jobs.

The investment will fund production of engines for the Chevrolet Cruze compact and Volt electric car.

It’s part of GM’s overall $2 billion investment to create or keep more than 4,000 jobs at 17 GM facilities in the U.S.

At a Flint, Mich. engine plant, GM is spending $84 million to increase production for a 1.4-litre four-cylinder engine. Another $25 million will be put into a Bay City factory to build parts for the engines.

GM’s sales are up 25 per cent this year, led by the Cruze. The company sold more than 25,000 of the compact cars last month.

Meanwhile, production has slowed for another Detroit automaker. Chrysler is moving its normal summer shutdowns at three factories into June from the usual July closings because of parts shortages from the earthquake in Japan.

A pickup truck plant in Warren, Michigan, and Chrysler’s Toledo, Ohio, North assembly plant will be idled the last two weeks of June. Both plants had been scheduled to close the weeks of July 11 and 18.

A Toledo parts operation will also close three weeks earlier.