General Motors is going to make a huge investment in the development of electric cars.
Its investment is going to center on manufacturing facilities update that will prepare them for the production of next-generation electric cars that have zero bad emissions and will therefore help the enviornment. Moreover, this update of manufacturing facilities will prepare them for the production of new battery technologies that will help electric GM cars to be on the road much longer.
The total amount of investment GM will make is estimated at 449 million dollars. This investment will be made into company’s processes located at two plants. One of these plants is Brownstown Battery Assembly. Another one is called Detroit-Hamtramck Assembly.
Vice president of General Motors manufacturing division in North America, Gerald Johnson, stated that his company is devoted to the development of new technologies and production of high-quality vehicles that exceed national standards. He also stated that introduction of these new technologies will allow General Motors to grow in spite of resurgent state of automobile industry. He also added that the General Motors latest investment will help position the new Chevrolet Volt as the leader of electric cars.
This investment is the biggest ever made by General Motors at either of above-mentioned facilities. The statement about this huge investment was issued at Automotive Press Association.
Upgrade of Facilities
General Motors Detroit-Hamtramck production facility will receive the bulk of this money. About 384 million dollars will be spent on this production facility. A big part of this money will go toward upgrading plant equipment for production of the new Chevrolet Volt, while other part of this money will go toward production of two other products which have yet to be announced. Another part of this money will pay for more advanced equipment and tooling that can be used for production of electric cars.
General Motors Brownstown Battery Assembly will receive the rest of this investment. About 65 million dollars will be invested in it. This money will pay for more advanced battery systems.
Governor of Michigan, where the plants are located, has stated that these investments will make his state an even more important player in the field of automotive innovation. He also stated that Michigan’s resources, such as world-class universities and top talent, will be harnessed by this significant investment made by General Motors.
Rick Snyder, the Governor of Michigan, while conceding that some challenges do persist in the automobile industry, has stated that the technological progress sparked by this investment will have positive impact on both environment and the local economy.
It is important to note that General Motors have invested more than 5.4 billion dollars in its US-based production facilities since 2009. Only the production facilities based in Michigan have received about 2.8 billion dollars in investment.
Mike Duggan, the mayor of Detroit, has praised this investment by General Motors, saying that will help General Motors solidify its position as the automobile market leader. Moreover, he said that this investment will help make Detroit the leader of technological innovation. He also said that he expects a lot of well-paying jobs to be created by this investment.