Report – GM to spend $1.3 billion to upgrade Texas factory image

The largest US automaker, also the third biggest in the world, is eying a $1.3 billion expansion of its Arlington, Texas, assembly facility in a drive to lift production of SUVs, according to documents from the US town.

General Motors will expand the factory by 1.2 million square feet (111,000 square meters), also lifting its workforce by another 589 jobs, according to the city, adding to the existing 3,179 workers. On April 14 the city council is also expected to call a public hearing to debate the introduction of a reinvestment zone at the plant’s location. The city officials have also proposed dropping taxes by 80 percent for a decade at the expanded facility, while also axing building permit and development taxes, according to a city staff report. The carmaker is one of the ten largest employers in Arlington, according to figures from the city’s website and its investment would be divided into $307 million for the additional space and the rest of $986 million to be used on new equipment purchases. “GM is developing a business case for a potential future investment at Arlington Assembly,” commented a company spokesperson, declining to reveal further details on the plans.

The largest US automaker has been swift to expand its production facilities in the US following the return to public ownership last year – with the US government relinquishing the last stakes in the automaker following its bailout back in 2009. The carmaker has also profited from the US auto market’s expansion, quickly riding out without major disruptions last year’s massive safety scandal surrounding its decade-late recall of defective ignition switches.

Via Reuters