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GM to invest $877 million to upgrade oldest assembly plant
On Tuesday, GM said it will spend $877 million to build a body shop at its Flint Truck Assembly Plant.
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Since 2011, GM has announced spending of over $1.8bn at Flint Assembly including $600m for plant upgrades and a new stand-alone paint shop under construction and scheduled to open in 2016. GM plans to break ground on the new body shop, which will cover 883,000 square feet, during the first half of 2016, with completion slated for sometime in 2018.
Flint Assembly, which opened in 1947, is GM’s oldest plant in North America.
General Motors has announced the final plant spend of its US$5.4bn round revealed back in April. GM factories in Flint; Arlington, Texas, and Fort Wayne, Indiana, together build about 60,000 trucks a month, according to Automotive News data. GM’s new investment means that our workers will continue to build award-winning vehicles right here in Flint to be sold around the world. GM said the investments over the next three years at U.S. plants will create 650 new jobs, primarily at two other Michigan facilities.
Amy Farmer, GM plant manager, said it’s hard work that brought money into Flint. She deferred from hinting when the next generation of large pickups and SUVs would reach the market, though sources said the company would build the upcoming vehicles using a variety of materials such as aluminum and lightweight steel. “This investment not only strengthens the ties between GM and the city, it demonstrates that Flint continues to play an important role in the resurgence of manufacturing in Michigan and the rest of the United States”.
The paint shop will paint trucks using “a wet-coat process” that results in a much durable and smoother finish.
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The announcement comes amid the automaker’s contract talks with the UAW. “This is a clean sheet approach for us to have a brand new body shop that gives us a little more flexibility for future products”. “This is both good for the company and good for our members”. The investment will also be used for improvements in assembly area, installation of new equipment, and retooling at the plant.