GM Invest in Engine Manufacturing

Following this month's initial public offering, American manufacturer GM is stepping up its investments, with more than one announcement expected to be made over the following weeks. The first came today and concerns $163.2 million to be directed towards three of the carmaker's operations. Some 184 jobs will be retained as a result of the investment.

The Flint Engine Operations ($138.3 million and 135 jobs), Bay City Components ($12.7 million and 8 jobs) and Defiance castings ($12.2 million and 41 jobs) will be upgraded to become fit for the production of engines for the Chevrolet Volt, Chevrolet Cruze and a new, unspecified Chevrolet small car.

“This investment is essential in ensuring we can meet the expected high demand for the Chevrolet Volt, Chevrolet Cruze and a small car that will be produced at our Orion Township facility,” said Kathleen Dilworth, Flint Engine Operations plant manager. “These three facilities will continue to play a key role in GM’s resurgence and efforts to bring to market vehicles with segment-leading fuel economy.”

The engines to be produced in the three locations are the Ecotec 1.4l used in the Chevrolet Cruze and the 1.4l version used in the Chevrolet Volt. Increased production of the engines (400 engines a day) will begin at Flint in early 2011, with the goal being to reach 800 units a month by late 2011 and 1,200 a day in late 2012.

“The UAW has and will continue to play a key role in GM’s revival,” said Terry Everman, UAW Local 599 chairman. “Our members have demonstrated that they are more than capable of building the latest and greatest in technology that will power some of the most fuel-efficient vehicles in the market.”