GM To Invest $328M To Revise Flint Truck Plant!

General Motors Co. confirmed that it will invest $328 million to prepare its Flint Assembly Plant to construct the next-generation of Chevrolet and GMC pickup trucks. The investment will add or save approximately 150 jobs at the 2,100-worker factory, which constructs full size and heavy duty trucks, admitting GM's top seller, the Chevy Silverado, and the GMC Sierra. The jobs are in accession to 750 being created or preserved when GM adds a third shift at the plant next month to meet the increasing demand for its heavy-duty pickups.

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General Motors Co.

GM is anticipated to introduce new versions of GMC Sierra and Chevrolet Silverado in 2013. Dana Rouse, shop chairman for United Auto Workers Local 598, called these trucks as GM's "bread and butter." Rouse said, "This right here, this facility, is where we make money for General Motors." Company officials refused to say how many jobs will be new, versus retained, nor when they may be added. GM also manufactures pickup trucks at its Fort Wayne factory in Roanoke, Ind. and in Silao, Mexico.

While truck trades remain sluggish, GM and other automakers are hopeful they'll pick up in the second half of the year. During the closing weeks of June, GM had a 122 days supply of full-size pickups, well above what industry analysts consider healthy. GM officials corresponded that inventory is slightly high, but not far off from the targeted 100 to 110 days of supply.

The Flint factory upgrades are part of a $2 billion investment plan announced by GM in May to create or save 4,000 jobs at 17 facilities nationwide. The money also arrives as the UAW and Detroit's Big Three gear up for contract talks, anticipated to begin next week. "We've got a tough set of negotiations coming up," said UAW Vice President Joe Ashton, speaking to factory workers in Flint. "We're looking for your support." Ashton stated that the UAW will push to bring back jobs to U.S. factories, as GM had done in Flint, by lending a third shift there over its truck plant in Mexico. He has also stated that the union wants GM to reopen idled plants in Spring Hill, Tenn. and Janesville, Wis. and retain a third, which is specified to close next year in Shreveport, La.

GM's vice president of labor relations, Cathy Clegg, said car and truck demand will drive production decisions. The company will first look to fill underused factories with work before considering idled plants. Clegg said, "We need to see some pretty healthy market recovery before we start turning factories back on. We certainly aren't going to make a decision or make a commitment solely as a way of getting an agreement," she added. "If the market doesn't drive it, we can't do that."

Source: DetNews