General Motors has announced an investment of $200 Million in its two plants, Orion Assembly and Pontiac Metal Center, for getting the facilities ready for a future vehicle program. Of this $200 Million, $160 Million will be invested for tooling and equipment in the Orion Assembly and $40 Million will be invested for new dies in the Pontiac Metal Center.
These investments are part of the approximate $300 million worth of Michigan-based investments that Mary Barra, the company’s CEO, referenced in a speech at the Detroit Economic Club on October 28 this year. These investments however, will not result in new job creations.
More information is available in the press release below.
GM Invests $200 Million in Two Michigan Plants – Press Release
DETROIT – General Motors will invest $200 million in its Orion Assembly and Pontiac Metal Center plants to prepare for a future vehicle program.
Orion will receive $160 million for tooling and equipment, and Pontiac will receive $40 million for new dies. These investments are part of the nearly $300 million in Michigan-based investments that GM CEO Mary Barra referenced in a speech at the Detroit Economic Club on October 28.
“Today’s announcement is a shot in the arm for these two terrific plants known for their teamwork and employee engagement,” said Cathy Clegg, GM North America Manufacturing vice president. “We’re committed to growing our brands and producing the highest-quality and safest vehicles for our customers.”
While no new jobs will be created by these actions, this announcement brings the total investment in Orion Assembly and the Pontiac Metal Center to $775 million since 2010. Across the U.S., GM has announced facility investment of nearly $11.4 billion since June 2009.
“I’m confident that our members represented by UAW Locals 5960 and 653 will bring the same hard work and quality as they always do to the new vehicle program,” said UAW Vice President Cindy Estrada, who directs the union’s GM Department. “UAW members are proud to be an integral part of an industry turnaround that makes investments such as this possible and an opportunity to show the success we can achieve when we work together.”
In 2010, General Motors announced a $545 million investment in Orion Assembly, the 4.3 million-square-foot facility in Orion Township, Mich., to launch the Chevrolet Sonic and Buick Verano. Kelley Blue Book recently named the Sonic one of the “10 Best Back-to-School Cars of 2014” and the Verano “2014 5-Year Cost to Own Awards: Best Entry-Level Luxury Car.”
“This major investment by GM underscores Michigan’s leadership in the automotive industry and reflects a broad-based confidence among job providers that our state is the place to do business,” said Gov. Rick Snyder. “We appreciate GM’s ongoing contributions to Michigan and will continue our work to create an environment that keeps the economy driving forward.”
Orion Assembly, located approximately 30 miles north of Detroit, was the first GM facility to receive the Clean Corporate Citizen designation by the State of Michigan.
The Pontiac Metal Center, located in Pontiac, Mich., is a 1.2-million-square-foot facility that stamps metal parts for 20 different vehicle models. Pontiac recently earned the U.S. Environmental Protection Agency’s ENERGY STAR® Challenge for Industry, one of only two GM plants in the world to meet the challenge three times.