GM to add 1,600 jobs

By Ben Rooney, staff reporter


NEW YORK (CNNMoney.com) -- General Motors announced Tuesday a $890 million plan to upgrade of five plants in North America that the automaker says will create 1,600 jobs.

The goal is to overhaul the plants to produce a "new generation" of fuel efficient small block truck and car engines, GM said in a statement.

Under the plan, GM will invest $658 million to upgrade plants in Michigan, New York, Ohio and Indiana. It will also invest $235 million to renovate a facility in Canada.

The "next-generation" small block engines to be manufactured at the upgraded plants will have "unprecedented fuel efficiency," GM said. The engines will be E85-ethanol capable, and are designed to meet increasingly stringent criteria emissions standards expected throughout this decade.

"GM is investing in our plants, restoring and creating jobs, and making progress toward our vision of designing, building and selling the world's best vehicles," said Mark Reuss, president of GM North America, in a statement.

Since GM emerged from bankruptcy last July, the company has announced investments of more than $2.3 billion at 22 facilities in the United States and Canada. GM said these investments restored or created more than 9,100 jobs.

GM said last week it had repaid the last of its $6.7 billion in emergency loans it had received from the U.S. and Canadian governments. Ed Whitacre, GM's chief executive, said at the time the company would make significant investments in two plants in Kansas and Michigan to produce the next-generation Malibu.

But the company remains heavily indebted to the government.

Overall, GM received $50 billion worth of federal assistance in 2008 and 2009 to avoid going out of business. In return, the government got $2 billion in preferred stock and 61% of the company's privately held common shares.

Earlier this month, GM said it suffered a loss of $3.4 billion in the fourth quarter of 2009. But the automaker offered an upbeat outlook, suggesting it may return to profitability in 2010.

Meanwhile, rival automaker Ford Motor (F, Fortune 500) reported a surge in first-quarter profit Tuesday. The Dearborn, Mich.-based company said strong sales of Fusion, F-150, Taurus and Focus cars and trucks helped it bump up U.S. market share by 2.7% in the first quarter to 16.6%. To top of page

Just the hot list include
Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Find Your Next Car
Index Last Change % Change
Dow 24,495.59 32.65 0.13%
Nasdaq 7,183.50 37.37 0.52%
S&P 500 2,679.59 9.45 0.35%
Treasuries 2.98 0.03 0.95%
Data as of 11:46am ET
Company Price Change % Change
General Electric Co 14.66 0.12 0.79%
Micron Technology In... 49.87 -0.75 -1.48%
Bank of America Corp... 30.35 0.09 0.30%
Advanced Micro Devic... 10.09 0.10 0.98%
Apple Inc 166.61 0.89 0.54%
Data as of 11:31am ET
Sponsors

Sections

US regulators are close to slapping Wells Fargo with a $1 billion fine for forcing customers into car insurance and charging mortgage borrowers unfair fees. More

The Justice Department is probing wireless carriers, and that investigation could put the eSIM card rollout on hold. More

Countless older workers are about to end their careers without money in the bank. Here's what to do if you're one of them. More