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

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 17,083.80 -2.83 -0.02%
Nasdaq 4,472.11 -1.59 -0.04%
S&P 500 1,987.98 0.97 0.05%
Treasuries 2.51 0.04 1.83%
Data as of 1:09am ET
Company Price Change % Change
Facebook Inc 74.98 3.69 5.18%
Ford Motor Co 17.84 0.06 0.34%
Yahoo! Inc 36.17 1.46 4.21%
Bank of America Corp... 15.62 0.10 0.64%
Apple Inc 97.03 -0.16 -0.16%
Data as of Jul 24

Sections

Would you pay $7.76 for a Big Mac? The Economist's iconic Big Mac index is a lighthearted way to compare currencies and buying power around the world. More

The government says health insurers are charging lower premiums, thanks to a provision in Obamacare. More

In New York City, business travelers have ditched meals at Starbucks in favor of Seamless takeout, according to a new report. More

CNNMoney readers rip managers who micromanage to death, play favorites, throw their staff under the bus and steal credit for their work. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.