Just this past May, General Motors announced it would invest $5.4 billion into upgrading its facilities. And in the months since, it has doled out the lion's share of those funds. But this latest announcement represents the biggest of the investments yet.

Of that $5.4-billion pie, GM will invest a hearty $1.4-billion slice into its assembly plant in Arlington, TX. That's the plant that handles the company's full-size SUVs, including the Chevy Tahoe, Chevy Suburban, GMC Yukon, and Cadillac Escalade – representing one of the company's most successful product programs. The latest investment follows $331 million that GM poured into the plant just a few years ago.

The cash injection will be applied to a new body shop, a new paint shop, upgrades to the assembly line, and the retooling and replacement of key equipment. No announcement was made regarding any additional jobs the expansion might include. In the meantime it is not expected to slow output at the factory, which produced its ten millionth vehicle earlier this year.

As part of its wide-ranging facilities upgrade, GM has already pledged $1 billion to expand its Warren Technical Center, $175 million for Lansing River (home of the Camaro), $1.2 billion for Fort Wayne (Silverado and Sierra pickups), $439 million for Bowling Green (Corvette), $119 million for Grand Rapids (engine components), and $245 million for Orion (for an unspecified new model). This latest announcement brings the total up to $4.5 billion out of the original $5.4-billion fund, leaving another $900 million to be doled out. Given the pace of the announcements so far, we'd expect the final moves to be made before the summer's out.

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GM Invests $1.4 Billion for Arlington Plant Upgrades
Texas-sized investment reflects company commitment to full-size SUV customers

2015-07-14

ARLINGTON, Texas – In its largest single plant investment in the U.S. this year, General Motors announced today $1.4 billion for a range of improvements to its Arlington Assembly Plant to more competitively produce high-quality full-size SUVs.

The investment allows the plant to be reconfigured with a new paint shop, body shop and general assembly area upgrades. Construction is expected to begin this summer and take approximately three years to complete. Production schedules for Chevrolet Tahoes and Suburbans, GMC Yukons and Yukon XLs and Cadillac Escalades will be unaffected by the construction.

"This super-sized investment reflects GM's commitment to our full-size SUV customers who expect nothing but the absolute best from us and their vehicles," said Cathy Clegg, GM North America Manufacturing and Labor Relations vice president. "Today's investment will contribute to Arlington Assembly's winning tradition marked by strong customer focus, innovative thinking and teamwork."

Since 2011, GM has invested nearly $2 billion in manufacturing improvements at Arlington Assembly including today's announcement, the launch of the current full-size SUVs and a new stamping plant.

"I have seen first-hand the success that is possible for a city when GM supports the communities where they work and live," said Arlington Mayor Jeff Williams. "The city of Arlington has benefited tremendously from the strong business and foundational support from GM. This new investment in Arlington solidifies its continued stewardship and commitment to our community."

This has been a monumental year for the more than 60-year-old assembly plant. Arlington Assembly celebrated its 10 millionth vehicle build, hosted GM's Board of Directors and provided $100,000 in GM Foundation grants to local community organizations. Meanwhile, the UAW-GM team continues to work regular overtime in the only GM plant to make award-winning full-size SUVs for Chevrolet, GMC and Cadillac customers globally.

"By working together, the UAW and GM are making a difference in communities across the United States," said UAW Vice President Cindy Estrada, who leads the union's GM Department. "These investments represent the power of our collaboration to create jobs and improve competitiveness, quality and our manufacturing base in this country."

Today's announcement is a part of the $5.4 billion GM announced it would invest in U.S. manufacturing over the next three years. Approximately $4.5 billion of the $5.4 billion has been identified, leaving about $900 million to be announced by year end.

Since June 2009, GM has announced U.S. facility investment of approximately $17.8 billion. About $12.4 billion of that has come since the 2011 UAW-GM National Agreement. In total, these investments have created 6,250 new jobs and secured the positions of approximately 20,700 others.

General Motors Co. (NYSE:GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company has leadership positions in the world's largest and fastest-growing automotive markets. GM, its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Opel, Vauxhall and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety, security and information services, can be found at http://www.gm.com

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