TORONTO — General Motors is to announce Tuesday plans to spend US$890-million to upgrade five North American factories, including facilities in St. Catharines, Ont., for the next generation of V8 engines, the latest set of factory upgrades in the automaker’s recovery, the Detroit Free Press reported.
The largest investment will go to GM’s Tonawanda, N.Y., factory, where the automaker plans to spend US$400-million to build a next-generation V8 engine. Earlier this year, GM announced a US$425-million investment in the plant to build new four-cylinder engines.
The automaker also plans to spend US$32-million to update its Bay City plant, US$115-million for its Defiance, Ohio, factory; US$111-million for Bedford, Ind., and US$235-million in St. Catharines, Ont., the newspaper said. All build powertrain components.
The move follows GM’s announcement last week that it would invest US$257-million for a new version of the Chevrolet Malibu, along with the payoff of US$5.8-billion in government loans.
GM North America President Mark Reuss said the automaker was running close to 100% capacity, one of its top goals following bankruptcy.
"It’s great news for our workforce and community," Wayne Gates, president of Canadian Auto Workers Local 199, told the Free Press.
Bloomberg News, citing people who asked not to be identified because the details aren’t public yet, reported that the spending on plants that make engines, transmissions and related parts will preserve 1,600 jobs. Kim Carpenter, a spokeswoman at Detroit-based GM, told the news agency the company is making announcements at several facilities.
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