Gm Announces To Invest In A New Plant In Detroit

By Author: Bruce Wills
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GM announces to invest in a new plant in Detroit

(Source: Bloomberg) 22 April 2010

General Motors paid back $4.7 billion in loans yesterday and Chrysler Group LLC posted profits of $143 million in the first quarter of the year .The third motor company, Ford Motor Co. closed in U.S. stocks markets on 21 April 2010, at one of the highest value since January 2005.

General Motors CEO, Ed Whitacre made an announcement related to new investments in factories of Detroit and Kansas. The investment will be made in May and he said the new Chevrolet Volt electric car will be released by October, one month before scheduled time.He was preparing to take a chartered plane to go to Washington to meet the officials.

GM announcements include -

Loan repayment

The company paid off a total of $5.8 billion in loans back to U.S. government and Canadian government. It paid $4.7 billion to U.S. government and $1.1 billion to Canadian government .The loan has been paid back five years before the deadline and this is the first step to give back the investment of $50 billion, the U.S. government spent ...
... in the automaker.

GM's new stock offering

The new public offering by GM is priced higher than governments' investment and U.S. government can sell 60.1% of its stake to get back the rest of its investments. The managing director of an investment banking division, Chris Price said GM should not flood the market with shares. He said government's decision of exiting from GM will depend on the profit made by the automaker in the year and beyond.

Fresh investments of $257 million in Detroit and Kansas plants

In Detroit the company employs more than a thousand people and the factory manufactures Cadillac DTS and Buick Lucerne. The work on preproduction version of Chevrolet Volt has started in Detroit.

The next generation Chevrolet Malibu will be made at the Detroit and Kansas plants, which will be located in an area of 3 million square feet and plant will employ 3,706 people. The shop chairman of UAW Local said this may not create many new jobs but it will raise job stability.

New hiring in General Motors in North America

GM will have new hiring in North America .The hiring will be made at lower wage levels as the company's plants are in full use and many dealers are waiting to get the new products. There are more than 1,200 workers who were transferred to the plants to Kansas City as the other units of GM were closed. Now, the workers can bring in their families to Kansas. One of the employees in the company said she has been waiting to buy a home and now, she can buy it.

Ford and Chrysler plans in Detroit

Ford announced to introduce a new Fusion hybrid, which will resemble the top gasoline electric auto Toyota Motor Corp.'s Prius and Chrysler plans to launch 16 new models in 2010.

To invest in a low cost home in Detroit for rental benefit

Detroit-based motors companies made a faster exit than anticipated by market experts, which shows the positive trends for Detroit. Mayfair Group offers cheap foreclosure homes to the overseas buyers in Detroit, the city which hosts world's largest motor companies and a number of families working in these Detroit companies are waiting to take homes on rent. These homes can be easily rented because many locals cannot buy a house due to negative credit rating and the investment homes of overseas buyers is managed by local partners of Mayfair in Detroit.

For more information log on to Detroit Property Investment,Mayfair Group or

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