General Motors CompanyGM announced that it will invest around $356 million in Michigan to fund a new engine line in Flint and driveline and powertrain components at the Saginaw and Grand Rapids facilities. With this investment, the automaker will employ over 50 new workers and retain nearly 500 positions.
Of the total investment, $263 million is meant for a future engine program at Flint Engine Operations. This investment will help retain 410 hourly and salaried jobs at the plant. General Motors will invest $50 million for driveline components at Saginaw Metal Casting Operations, retaining 68 jobs in the process. The company will invest another $43.35 million for powertrain components at the Grand Rapids plant. This investment will create 55 new positions and retain 15 jobs.
General Motors believes that these investments will enable it to produce high quality engines and components for customers, thus ensuring better fuel efficiency and performance in vehicles.
This investment by General Motor increases its total 2015 investment in U.S facilities to $7.1 billion. Recently, the company also announced an investment of $353.4 million in four other states. It will invest $127.4 million for engine components in Bedford, IN; $44 million for engine capacity expansion in Bowling Green, KY; $82 million for productivity enhancements in D-Max/Moraine, OH; and $100 million for engine components in Defiance, OH.
General Motors also announced an amended agreement with the Michigan Strategic Fund under the Michigan Economic Growth Authority ("MEGA") tax credit program. Under this agreement, the automaker will make an investment of $1 billion in Michigan by 2030. The $356 million investment in the facilities constitutes more than one third of the total amount.
General Motors is focused on making investments in innovative technologies and vehicles, which should provide sustained growth while maximizing shareholders value. Since 2009, the automaker has committed to invest a total of $9 billion in Michigan.
Detroit, MI-based General Motors is a prominent player in the global automotive industry. Currently, the company carries a Zacks Rank #2 (Buy).
Other favorably ranked automobile stocks include American Axle & Manufacturing Holdings Inc. AXL , Fox Factory Holding Corp FOXF and O'Reilly Automotive Inc. ORLY . All these stocks carry a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report