General Motors has committed to investing close to $1.3 billion in United States manufacturing plants. The investment will include five facilities, which are located in Detroit, Flint, and Romulus, Michigan, Toledo, Ohio, and Bedford, Indiana. The plan is expected to create jobs in some of the most distressed cities in the Midwest.
Following years of mismanagement and a controversial government bailout, GM has realized increased profits in the last 15 quarters. As Mary Barra prepares to take over as CEO on January 15, the automotive giant is making a comeback.
The announcement was made in Flint, Michigan, The location is significant as the city’s demise was documented in Michael Moore’s 1989 documentary Roger & Me. The once-thriving town and its residents were devastated by former CEO Roger Smith’s decision to close several GM plants.
During the announcement, General Motors committed to investing $600 million to upgrade the Flint plant. The plant, which assembles Chevy Silverado and GMC Sierra trucks, will use the funds to implement several upgrades including a new paint shop.
GM Executive Vice President and North America President Mark Reuss said the investment will allow for upgrades at all five plants. The upgrades will include equipment to manufacture engines and transmissions that are more fuel-efficient. As reported by Forbes, a planned logistics center will streamline production to improve overall vehicle quality.
. Reuss said General Motors is dedicated to investing in America:
“GM is committed to a strong American manufacturing base and creating jobs in dozens of communities throughout the country. Today’s announced plant upgrades continue the momentum of a resurgent auto industry.”
The five plants currently employ approximately 7,500 workers. Officials with GM said the upgrades will “create or retain about 1,000 jobs combined.” However, Reuters reports that is unclear how many new jobs are included in that total.
In contrast, General Motors recently closed several plants throughout Europe and Australia.