The auto industry has topped manufacturing news for the past two years. From the financial struggles of General Motors and other domestic manufacturers to the failure of electric car companies, automobile manufacturing has fueled a number of foreboding headlines. Expansion news from General Motors has turned that trend around over the past few weeks.
Perhaps the biggest news related to General Motors is a plan to invest over $690 million to expand Mexican-based automobile plants. GM operates a number of parts plants in Mexico, including an engine plant in Toluca. The multimillion-dollar investment will expand existing plants by updating equipment, adding space, and hiring additional workers in order to maximize throughput. Currently, GM employs 15,000 individuals at five locations in Mexico; there is no information regarding how many jobs the expansion will create. General Motors does plan to add a sixth facility in Silao; the new facility will be used to build eight-speed transmissions.
GM hasn't forsaken manufacturing vehicles on its home turf. Although inexpensive labor and free trade agreements make Mexican-based plants attractive to domestic auto manufacturers, General Motors is also expanding some US-based endeavors. In November 2011, GM announced a plan to invest $380 million in a Missouri-based plant, and in June 2013, the auto manufacturer announced that it was investing another $133 million in the plant. The new investment will allow the addition of 114,000 square feet of space and a third stamping press machine at the Wentzville, MO, plant. The expansion is expected to add fifty-five jobs to the plant by 2015.
It's not all new factories and increased investments for GM. In July, General Motors closed a plant that produced weld tools. The plant, which was located in Flint, MN, was opened in 1942. At the time of closing, there were approximately 350 employees. In keeping with more positive automobile manufacturing news, the closure of this GM plant didn't result in a loss of jobs. General Motors offered all employees jobs at other plants. Out of 350 employees, approximately 100 opted for an early retirement, while others were relocated to available jobs.
Despite a few lackluster years for the US-based auto industry, General Motors seems to have hit 2013 with a hop in its step. In addition to the specific expansion projects mentioned above, GM has committed to investing $1.5 million in North American auto manufacturing projects during 2013 alone. The company is also working with Honda on hydrogen fuel research and working on a program to break even in the European market within the next few years. At a time when manufacturers are struggling to stay afloat in a slow economy, recent announcements from General Motors about expansions, growing product demand, and plans for success offer hope to automobile manufacturers throughout the nation.
(Photo courtesy of stoonn / freedigitalphotos.net)
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