TOLEDO, OHIO—General Motors Co. is throwing $2 billion into its assembly and component plants in a move that’s expected save more than 4,000 jobs throughout eight states in the U.S.
“We are confident about demand for our vehicles and the economy,” said GM Chairman and CEO Dan Akerson.
Akerson said GM will invest $204 million to retain about 250 jobs for a new, advanced 8-speed automatic transmission for future vehicles.
The company recently reported its fifth-consecutive profitable quarter since emerging from bankruptcy reorganization in July 2009.
The first investment add $131 million and about 250 additional jobs in Bowling Green, Ky. It will include new equipment and plant upgrades to make the next generation Chevrolet Corvette while the current-generation is assembled for at least the next two model years.
Over the next few months, GM will make specific facility investment announcements dependent on state and local incentives. According to the nonprofit Center for Automotive Research, the ripple effect of the planned investments would add almost $2.9 billion to the U.S. Gross Domestic Product and create or retain more than 28,000 jobs.
“The UAW’s goal has been to return all laid-off workers to active status and see the company begin hiring again,” said Joe Ashton, UAW vice-present, GM Department.
“These announcements will create and retain thousands of jobs and bring General Motors back to full employment of our hourly workforce,” he said.
“If the market continues to recover, we are confident that GM will hire new workers to meet the strong demand.”