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$545 Million Investment by General Motors

A big investment amidst troubling times for the car giant

auto warranty quoteGeneral Motors Corp. will be investing $545 million in five different production plants in the Michigan area. This seems odd for GM, considering that they lost $8.6 billion last year alone and have already ditched 27,000 employees since 2000. However, Joel Spielman, general manager of GM’s North American manufacturing operations, seems to think that this investment may boost moral.

Jennifer Granholm, the Governor of Michigan, had a few things to say about the investment and the restructuring of Detroit’s largest automaker.

"We want you to know that your success-and we know GM will have success in turning it around – is our success," Gov. Jenifer Granholm Said. "There is no vision of Michigan’s future that does not include a vibrant and growing auto industry."

GM also shared three improvement projects that stem from the large investment.

The company is investing $152 million in its Ypsilanti transmission plant to increase production capacity for rear-wheel drive, six-speed transmissions. It is investing $60 million in its Romulus engine plant for making the small-block V8 engines that will go into its new full-size trucks. It is also spending $32 million to update the hydroforming equipment in its pontiac metal stamping plant, which uses water to help make the unique curves on the Pontiac Solstice and Saturn Sky roadsters.

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Posted on Tuesday, February 14th, 2006 at 10:56 pm In Auto Warranty  

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