IBJNews

GM to invest $332M in factories, including Indiana plant

Back to TopCommentsE-mailPrintBookmark and Share

General Motors plans to invest $332 million into four factories in three Great Lakes states to build new, more efficient engines and transmissions.

The spending at plants in Toledo, Ohio; Bedford, Ind.; and Flint and Bay City, Mich., will allow the company to build a new V-6 engine, a new small motor and new eight-speed automatic transmissions, GM said Thursday. The company also added $46 million to a prior investment at plants in Romulus and Saginaw, Mich., to build the new V-6.

In Indiana, GM plans to spend $29.4 million for a metal castings plant in Bedford to make parts for small engines and for the new eight-speed and existing six-speed automatic transmissions.

No jobs will be added at the six plants, but GM said the investments preserve 1,650 jobs.

The investment also will help GM build more six-speed automatic transmissions as auto sales continue to rise in the U.S. Sales this year are expected to climb as high as 15.5 million cars and trucks, 1 million more than last year. Through March, GM sales are up just over 9 percent.

GM wouldn't give details about the new engines and transmissions, nor would it say what cars and trucks would get the new powertrains. It also wouldn't say exactly when they would be available, for fear of tipping competitors to its product plans.

The company did say that the money will help start a new family of three- and four-cylinder engines that range from 1 liter to 1.5 liters. Presently the smallest motor GM makes in the U.S. is a turbocharged 1.4-liter four-cylinder that goes into the Chevrolet Cruze and Sonic, as well as other models.

Last summer, CEO Dan Akerson told employees that the company was behind its competitors in engines and transmissions, saying that GM has six-speed transmissions when competitors have up to 10 gears. Transmissions with more gears allow engines to do less work and save fuel.

The investments announced Thursday should improve GM's technology in relation to its competitors, said Arvin Jones, GM North America manufacturing manager. "We think the investments we're making will give us a competitive advantage and position us very well," he told reporters.

The investments are part of $1.5 billion that GM plans to spend on its North American factories this year. So far the company has announced projects totaling $1.2 billion in the U.S. Another $250 million was announced for a GM assembly plant in Ingersoll, Canada.

The investments announced Thursday include:

— $215 million for the Flint Engine Operations in Flint, Mich., where the new three- and four-cylinder engines will be built. The plant also will get upgraded machinery for a V-6 engine that it currently builds.

— $55.7 million for Toledo Transmission Operations in Toledo, Ohio, to build a new eight-speed transmission and expand capacity to build an existing six-speed transmission. The new transmission will be used in "numerous" GM vehicles by the end of 2016, the company said in a statement.

— $31.7 million for a powertrain plant in Bay City, Mich., north of Detroit, to build parts for a new V-6 engine and components for new small engines.



GM already has announced that the new Cadillac CTS luxury sports sedan, due out later this year, will have an eight-speed automatic transmission that initially will be built by an outside company. The CTS also will get a new twin-turbo V-6 engine. New full-size Chevrolet and GMC pickup trucks that arrive late this spring also are expected to get eight-speed transmissions at a later date.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. So much for Eric Holder's conversation about race. If white people have got something to say, they get sued over it. Bottom line: white people have un-freer speech than others as a consequence of the misnamed "Civil rights laws."

  2. I agree, having seen three shows, that I was less than wowed. Disappointing!!

  3. Start drilling, start fracking, and start using our own energy. Other states have enriched their citizens and nearly elminated unemployment by using these resources that are on private land. If you are against the 'low prices' of discount stores, the best way to allow shoppers more choice is to empower them with better earnings. NOT through manipulated gov mandated min wage hikes, but better jobs and higher competitive pay. This would be direct result of using our own energy resources, yet Obama knows that Americans who arent dependent of gov welfare are much less likely to vote Dem, so he looks for ways to ensure America's decline and keep its citizens dependent of gov.

  4. Say It Loud, I'm Black and Ashamed: It's too bad that with certain "black" entertainment events, it seems violence and thuggery follows and the collateral damage that it leaves behinds continues to be a strain on the city in terms of people getting hurt, killed or becoming victims of crimes and/or stretching city resources. I remember shopping in the Meadows area years ago until violence and crime ended make most of the business pack you and leave as did with Lafayette Square and Washington Square. Over the past 10 to 12 years, I remember going to the Indiana Black Expo Soul Picnic in Washington Park. Violence, gang fights and homicides ended that. My great grandmother still bears the scares on her leg from when she was trampled by a group of thugs running from gun fire from a rival gang. With hundreds of police offices downtown still multiple shootings, people getting shot downtown during Black Expo. A number of people getting shots or murdered at black clubs around the city like Club Six on the west side, The Industry downtown, Jamal Tinsley's shot out in front of the Conrad, multiple fights and shootings at the skating rinks, shootings at Circle Center Mall and shooting and robberies and car jackings at Lafayette Mall. Shootings and gang violence and the State Fair. I can go on and on and on. Now Broad Ripple. (Shaking head side to side) Say It Loud, I'm Black and I'm Ashamed.

  5. Ballard Administration. Too funny. This is the least fiscally responsive administration I have ever seen. One thing this article failed to mention, is that the Hoosier State line delivers rail cars to the Amtrak Beech Grove maintenance facility for refurbishment. That's an economic development issue. And the jobs there are high-paying. That alone is worth the City's investment.

ADVERTISEMENT