GM will invest over $900M in 4 plants. Flint will get a new engine.
FLINT, Mich. (AP) — General Motors says it will spend more than $900 million to update four factories, with the bulk going to an engine plant in Flint, Michigan, to build the next-generation V8 for big pickup trucks and SUVs.
Friday’s announcement from the company indicated that investment will also be made into factories in Defiance and Bay City in Ohio, New York, and Bay City, Michigan. These investments will help to manufacture components for V8 engines as well parts for future electric cars.
According to the company, although the investments will not create new jobs, they will keep approximately 2,400 salaried and hourly positions at the four locations.
The investments “provide job security at these plants for years to come,” Gerald Johnson, GM’s manufacturing chief, said in a statement.
Flint Engine Operations will receive $579 million to purchase equipment to make the sixth-generation small block V8. This will be used to produce the next generation of large pickup trucks and SUVs. About 700 workers are employed at the plant, which will continue to make their current product, a diesel engine that is used in light trucks.
GM and other automakers will have to meet stricter fuel economy standards and pollution limitations starting in 2024. In order to sell new vehicles in the U.S., they will have to average 40 mpg of gasoline in 2026. This is up from around 28 mpg under old Trump administration rules.
The new V8 will need to be more efficient that the current version, but GM did not release any details.
GM’s Bay City engine components plant, Michigan will receive $216 million to make camshafts and connectingrods as well as to machine engine blocks for the new V8 in Flint. About 425 workers are employed at the plant.
The $55 million will be used to create a variety block castings for the V8. The company also announced that $8 million will be used to cast future electric cars. There are approximately 530 workers at the plant.
GM’s Rochester operations in New York will receive $68million, and $56million to make battery pack cooling line for electric vehicles. Rest of the money will go to tools for making intake manifolds or fuel injection rails for new V8. GM stated that the Rochester facility employs 745 people.