Gm Would Be Investing $47 Million For Its Ohio Plant

By Author: Marty Vergel Baes
Total Articles: 423
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GM recently announced that they would invest a total of $47 million for its Defiance, Ohio plant. This announcement was actually a part of the company’s $2 billion total spending for this year aimed at upgrading its 17 plants scattered across the eight states in US. According to GM, the subsequent upgrades of its plants all over the US would ensure that the company would be providing reliable, fuel-efficient, and safer vehicles to almost every new car finder interested in buying a GM-made vehicle either in straight cash or by getting several auto loans to finance their vehicle purchases.

However, GM did not provide a detailed announcement as to whether the $47 million intended for the upgrade of its powertrain plant in Defiance, Ohio. What they clearly stated is that this increased spending would be devoted for buying tools and equipments that would boost the plant’s overall production output.

This move is viewed by the company as very strategic since this will allow the powertrain plant to ...
... explore and provide larger volumes of vehicle components used by GM in its Ecotec 1.4liter engine. Aside from this, the company also expects that the upgrade would provide new components that they will use for their upcoming trucks and smaller car engines.

The Ohio powertrain plant currently employs 1,277 salaried and hourly employees. But GM did not specify if the increased investment would be used to create new job opportunities or retain most of its employees. What was clear is that this investment would make the plant more productive most especially in creating some of the company’s needed vehicle components such as crankshafts, cylinder head, and cylinder block. However, most car experts expect that the additional budget for the plant would probably increase their output compared to the 5.8 million castings they produced in 2010.

In addition to this, the increased investment for the Ohio plant was considered as the company’s way of coping with the increasing demands for some of their popular cheap new car models such as the Chevy Cruze, the Chevy Volt, and the Sonic. In the event that the Ohio plant would be successful in increasing its production output, this would surely benefit the company as a whole.