By John D. Stoll
PONTIAC, Mich.-- General Motors Co. laid out a plan Thursday to
invest $5.4 billion in U.S. factories over the next three years, an
announcement that comes on the eve of summer contract talks with
the United Auto Workers.
The announcement, taking place at a stamping plant in a Detroit
suburb, includes at least $785 million earmarked for plants in
Michigan. It is unclear what level of government incentives or job
commitments are attached with the investment plan.
Michigan facilities in Lansing, Pontiac and Warren will benefit
from the plan.
GM's decision to outline billions in U.S. investment is a common
strategy for Big 3 auto makers in advance of quadrennial labor
talks with the UAW. Flush with profits, GM, Ford Motor Co. and Fiat
Chrysler Automobiles are expected to be pressed for pay increases
or richer profit-sharing plans.
This week GM won approval for $30 million in tax incentives from
Arlington, Texas, officials. The deal paves the way for a $1.3
billion expansion of an SUV factory to boost capacity of some of
the auto maker's most profitable vehicles and add about 600 new
jobs.
GM posted its highest North American profit in the first quarter
since emerging from bankruptcy--a result coming amid sizzling U.S.
auto sales and strong demand for trucks and SUVs. Its 8.8%
operating margin in the region is near the company's 10% near-term
margin target.
Write to John D. Stoll at john.stoll@wsj.com
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