GM announced it will invest $1.5 billion this year in its North American plants.
According GM North American chief Mark Reuss, the $1.5 billion to be invested in the North American plants is part of the $8 billion investment the US automaker announced it will spend each year for its worldwide operations. Since the GM’s bankruptcy in 2009 and the $50 billion bailout offered by the US government, the automaker has invested $10.2 billion in the North American market.
GM also announced its plan to refresh 70% of its vehicle lineup in the US in 2012 and 2013. Although customers are not yet into buying electric cars, GM has unveiled at the Detroit auto show the Cadillac ELR plug-in hybrid, saying that the electric car is not dead.
“We’re talking about a massive transformation that we’re undergoing as an industry, as a nation,” Reuss said. “It takes a long time to change an industry, to change habits and to change a way of life.”
The company plans to adopt a new design for the next Volt, a more efficient one, which will help GM cut thousands of dollars in costs per vehicle by using smaller components and reducing the car’s weight. GM did not offer a timetable for the next version of the plug-in hybrid vehicle.