GM to invest $877 million to overhaul Flint, Michigan, truck plant - Reuters

truck plants for you to install new assembly lines, physique welding shops and paint operations for long term generations regarding Silverado pickups and also SUVs such since the Chevrolet Tahoe along with Cadillac Escalade, whilst nevertheless running your operations in which construct current models. Assembling the newest vehicles will need substantially distinct equipment than the different tools GM utilizes today.

GM's plan to keep truck plants running by means of the significant model alter contrasts using Ford Motor Co's (F.N) approach to be able to retooling factories to gather its aluminum-body F-150 truck.

People familiar using the company's plans say GM's next-generation pickups and also SUVs is most likely to make use regarding a variety of materials, such as aluminum as well as lightweight steel, in losing weight and also gain gasoline efficiency to meet tougher federal standards. Ford in 2014 lost concerning 13 weeks of production from pickup truck factories inside Dearborn, Michigan, as well as Kansas City, Missouri, because the plants switched from the old, steel truck for the new, lightweight model.

DETROIT General Motors Co (GM.N) said in Tuesday it'll devote $877 million to overhaul its pickup truck factory throughout Flint, Michigan, capping a group of investments to maintain production of profitable significant pickups and sport utility vehicles rolling via an important model change expected throughout 2018.. Securing work with U.S. plants since April, such as the actual truck plant overhauls. Your business furthermore outlined upgrades along using other operations, such as a tiny car assembly operation in suburban Detroit, as well as an expanded facility within Warren, Michigan, which allows engineers along with workers in order to test production techniques prior to they may well be installed inside a plant.

The investments could help GM in its effort for you to set the particular framework for your new labor agreements your United Auto Workers union can be negotiating with the Detroit 3 automakers. GM factories throughout Flint; Arlington, Texas, and Fort Wayne, Indiana, collectively develop regarding 60,000 trucks any month, based on Automotive Information data. factories is really a leading priority with regard to union leaders.

     The Flint investment is an element of the program to grow 3 U.S. New paint shops at the truck plants additionally could allow GM to create vehicles which are larger compared to current models, as well as spend less from the same time, organization officials said.

   GM will not need to become able to "take the whole facility down regarding 6 months and go darkish in the market," Cathy Clegg,  head regarding North American manufacturing, advised Reuters, with out saying when model changes for your significant pickups as well as SUVs will come. Analysts estimate individuals vehicles generate $10,000 or perhaps much more in operating profit each.

Clegg stated your UAW's willingness to accommodate three-shift-a-day production from its truck along with SUV factories is critical for the company's efforts to become able to boost output to satisfy any boom in demand.

In the past, GM as well as its domestic rivals would shut down production with regard to weeks to retool for new models, stockpiling vehicles beforehand then discounting these people when the brand new model appeared.

(Editing through Matthew Lewis)

GM has announced any total involving $5.4 billion throughout investments throughout U.S

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