Report – GM mulls investments worth billions at home image

According to a report coming from a source that talked to Reuters, the largest US automaker is preparing the announcement of an investment strategy worth many billions of dollars and spanning several years.

More importantly for the US market, GM will direct the spending towards certain US manufacturing factories in a bid to lift both production quota and build quality, according to the unnamed person that has knowledge of the carmaker’s plans. Gm so far has not confirmed or denied the report, but has already scheduled for Thursday a conference call at its stamping facility in Pontiac, Michigan, where it would report a “major US manufacturing announcement.” The third biggest carmaker in the world is largely expected to deliver the details on its planned capital spending towards factories and associated production equipment, such as body shops and stamping facilities – with the end result of creating more jobs, though the source didn’t know the exact number.

The announcement would come under auspicious times for the automaker as it gets ready to enter the negotiations room with the United Auto Workers union this summer – all the represented workers will have their contracts ended this September. The big, 50,000 US hourly workforce, would be more relaxed knowing that GM has secured investments for several years from now on in the union-represented facilities. So far, we already know that GM has a budget of $9 billion for this year for capital spending – which should be divided between new product introductions and technology investments and usually spending goes about two-thirds towards North America.

Via Reuters