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11. Juni 2015

General Motors (GM) To Spend $439 Million On Corvette Plant

General Motors (GM) To Spend $439 Million On Corvette Plant

General Motors Company is set to upgrade its Bowling Green Kentucky plant which builds the Chevrolet Corvette sports car

Detroit-based General Motors Company is spending $439 million to expand and upgrade its Kentucky plant as part of a $5.4 billion investment plan for its US factories. The Bowling Green Kentucky plant has been building the stylish Chevrolet Corvette sports car since 1981. The construction is scheduled to start this summer and is expected to complete in 2017.

Under the expansion plan, a new 450,000-square foot-wide paint ship will be added to the plant, almost half the size of the current Bowling Green production facility, said the automaker in a statement. With the expansion of the plant and setting up of a new paint shop, GM plans to offer more color options for Corvette fans.

“With this major technology investment, we can continue to exceed the expectations of sports car buyers for years to come, “said Arvin Jones, manufacturing manager for North American region, as quoted by The Wall Street Journal.

Furthermore, the facility spending will account for upgraded robots and tooling features, along with environmental enhancements, as reported by The Associated Press as well as new high efficiency baking ovens equipped to reduce power usage. The car maker had previously invested a total of $135 million over the last four years to assist the launch of the Chevrolet Corvette Stingray in 2014 and to open the Performance Build Center.

North America’s largest automaker also disclosed that 150 new jobs will be created in the Kentucky plant expansion, where 753 hourly workers are also employed. This announcement has been made just when the company is about to negotiate a new labor deal with the United Auto Workers (UAW) union this fall. According to Bloomberg, Vice President of UAW, Cindy Estrada said, “Hardworking UAW members have proudly built vehicles in Bowling Green for more than 30 years, and we are pleased to be a part of such a significant facility upgrade.”

The $5.4 billion invested in US factories will also rake in new factory employments, especially in the Delta Township assembly plant and Pontiac stamping plant. With an aggressive expansion plan, GM is set to beat its rival Detroit-based car makers such as Ford Motor Company  and Fiat Chrysler Automobiles NV.

Source: bidnessetc.com

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