Fresh after revealing it would invest $1.2 billion to upgrade one of its US plants, General Motors has revealed another reason it wanted to safeguard its cash hoard from the intervention of activist investors – it plans to use them to fund new expansions.
It appears now the largest US automaker, also the third biggest in the world, is planning to invest another one billion dollars in expanding its well known Tech Center campus in Warren, Michigan, the northern suburb of Detroit. Warren Mayor Jim Fouts dropped the hints during his State of the City speech. “We are pursuing incentives with the City of Warren. If the project is approved it would include new buildings and renovation of existing buildings,” disclosed a company spokesperson. It appears the investment is still in the incipient phase, though – a deal has not been inked, according to the same GM official. The carmaker had been steadily upgrading and improving its crucial tech center campus over the past few years and the new strategy could have two directions. The first one would have to do with the extensive damage suffered by the current 330-acre campus during last summer’s storms – GM paid then $132 million in flood reconstruction and still has numerous restoration jobs waiting. The other part would be a pure expansion, creating in the process around 2,500 to 3,000 new workplaces and also bringing new buildings for the consolidating IT division – with the projects tentatively complete by 2020.
GM has been promoting the Warren technical center as one of its four information technology centers in the US, building up its engineering and programmer ranks to develop new software and computing hardware for its future cars and also other purposes. The company has also decided that its 23 data centers across the world should be consolidated into just two venues, one of them being the Tech Center.