General Motors Co. (
) announced its decision to build a new stamping facility at its
Lansing Grand River Assembly plant in the U.S. The automaker
intends to invest $174 million in the plant, which will create
about 145 new jobs.
The stamping facility is likely to start operations from 2016 and
will be producing stamping components for the Cadillac ATS and CTS
family of vehicles. With this, General Motors expects to see
savings of $14 million in material handling related logistics costs
Lansing Grand River Assembly is the second U.S. assembly plant of
General Motors. It mainly manufactures vehicles like Cadillac ATS,
CTS and the CTS V-series performance versions. The unit focuses on
delivering enhanced quality which will be further supported by the
stamping facility addition.
Importantly, General Motors has invested over $530 million in the
Lansing Grand River Assembly plant since 2009. In 2010, the
automaker expended $190 million for the addition of production
facility for Cadillac ATS which made way for 600 new jobs. Also in
the same year, General Motors spent $37 million for tooling and
equipment at the plant in order to improve its manufacturing
In 2011, General Motors invested another $88 million for the
manufacture of the all-new 2014 Cadillac CTS sedan at the Lansing
Grand River Assembly plant. Also, the following year, the company
started manufacturing the next-generation Camaro in the plant.
Further, in 2013, General Motors invested $44.5 million and created
200 jobs for the new logistics optimization center at the plant.
General Motors currently carries a Zacks Rank #3 (Hold).
Better-ranked automobile stocks worth considering include Tesla
Motors, Inc. (
), Visteon Corporation (
) and STRATTEC Security Corporation (
), all of which sport a Zacks Rank #1 (Strong Buy).
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