Home > GM invests $US 1.3 billion in three US states

GM invests $US 1.3 billion in three US states

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General Motors has announced that it will invest $US 1.3 billion at five US plants, the week after the company announced its decision to stop manufacturing Holden cars in Australia.

AP reports that five GM plants in three US states will see investment for various upgrades, to make things such as transmissions and engines with greater fuel efficiency and pickup trucks of a higher standard. The manufacturing logistics centre in Hamtramck would also be upgraded.

"GM is committed to a strong American manufacturing base and creating jobs in dozens of communities throughout the country,” said GM’s North American head Mark Reuss in a release.

"Today's announced plant upgrades continue the momentum of a resurgent auto industry,"

The bulk of the money, $US 1.1 billion, would be invested in the state of Michigan, and $US 600 in Flint, the car company’s birthplace.

The news comes the week after General Motors, GM Holden’s parent company, announced that it would stop making cars in Australia at the end of 2017, switching to an import-only business after that.

The outgoing CEO of GM, Daniel Akerson, said that there were many factors behind the Holden decision, but refused to comment on the role of Australian government assistance in this.

“But basically you have a low tariff economy, so outside importers have an advantage, you've got a strong Australian dollar and you've got a supply chain... that is getting weaker," he told Fairfax Media.

Mary Barra, who will be the company’s first female CEO, will take over Akerson’s role on January 15.

The US government sold the last of its shares in the car maker last week.

GM has been sometimes referred to as "Government Motors", due to the unprecedented level of US public assistance it received following the GFC. 


Image: Bloomberg



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