General Motors (GM) is set to make significant investments in U.S. facilities, with plans to allocate approximately $13 billion by April 2028, according to the recent tentative agreement reached with the United Auto Workers (UAW) union.
Some of these investments have already been disclosed by GM, including a $4 billion commitment to the Orion Assembly plant in suburban Detroit and $2 billion earmarked for Spring Hill, Tennessee, to support the production of new electric vehicles. However, several other investments are new, with $1.25 billion designated for the establishment of a future electric vehicle plant at Lansing Grand River.
These investments encompass a range of aspects within GM’s operations. Many of them include substantial sums for assembly plants, which will either expand their capacity or introduce additional volume, as well as investments in engine and components plants.
The details of this tentative agreement were revealed after it received approval from local UAW leaders working with GM. It’s worth noting that the agreement still requires ratification by a simple majority of the UAW’s 46,000 members employed by the automaker. GM was the last of the Detroit automakers to reach a tentative agreement, following Ford Motor and Stellantis, the parent company of Chrysler.
For the UAW, disclosing investment and product details is crucial to demonstrate job security to its members. GM’s planned investments in the U.S., as outlined in this 4 ½-year tentative agreement, compare to $8.1 billion announced by the union at Ford and $18.9 billion at Stellantis, which includes $6.2 billion previously allocated for parts plants in Kokomo, Indiana.
It’s important to note that the details provided by the union for GM do not include the billions in investments for four joint-venture battery cell plants in the U.S., which also encompass three upcoming facilities.
In response to the released details, GM has not provided additional comments beyond a statement from CEO Mary Barra when the tentative agreement was initially announced. In the statement, Barra expressed the company’s satisfaction with the agreement, highlighting the commitment to invest in the future and provide job opportunities in the U.S., while emphasizing GM’s focus on delivering high-quality products for its customers and working as a unified team.