GM to invest in Detroit auto plant

April 8, 2014: 3:12 PM ET
detroit hamtramck plant
The Chevrolet Volt is one of several models General Motors assembles at its Detroit-Hamtramck plant.
NEW YORK (CNNMoney)

General Motors is giving another boost to its hometown of Detroit, a city in dire fiscal straits.

The automaker on Tuesday announced a $384 million upgrade to its plant that spans Detroit and the neighboring city of Hamtramck.

It is one of two automakers that still have plants in the one-time auto capital, which is working through the country's largest-ever public sector bankruptcy.

The GM investment includes upgrades to the assembly lines for the Chevrolet Volt and "two future products," the company said. The Detroit-Hamtramck plant currently assembles several electric vehicles, including the Volt and Cadillac ELR, as well as Chevy's Impala and Malibu sedans.

With this investment, General Motors (GM) said it has spent over $1 billion on the Detroit-Hamtramck plant, which employs about 1,600 people.

GM will also invest $65 in a nearby battery production plant.

Michigan Gov. Rick Snyder called the announcement "good news" for the Detroit and state economies.

How Chevy Volts are made

Even with tax breaks for shoppers, electric vehicle sales have underperformed automakers' hopes. But the companies are trying to increase sales while facing government-mandated emission targets.

Last fall, GM cut the Volt's sticker price from $40,000 to $35,000.

CEO Mary Barra, a longtime employee who took the top position in January, was once manager of the Detroit-Hamtramck plant. She is currently steering the company through a series of recalls totaling about 7 million vehicles.

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