GM’s executive vice president, Global Manufacturing and Sustainability, Gerald Johnson says the $918-million manufacturing investment will help with V8 and EV component production. (Image: GM)
What Does $918 Million Mean?
When you read about investments in manufacturing facilities like the one GM made last week, it is probably something for which you have no context and so you shrug.
So let’s provide a bit of context.
GM announced the investment of $918 million in four U.S. plants.
- Flint [Michigan] Engine Operations is getting $579 million for the assembly of the forthcoming sixth-generation family of Small Block V8 engines. Machining capacity of blocks, cranks and heads will also be added.
- Bay City [Michigan] GPS gets a $216-million investment for camshafts, con rods, and block/head machining to support the Flint plant.
- Defiance [Ohio] Operations is receiving a $55-million investment. Of that, $47 million will go for various block castings for future V8 engine programs. $8 million will be used to build a casting development cell for future electric vehicle components.
- Rochester [New York] Operations is getting a $68 million investment. Of that, $12 million will go for the production of fuel rails and intake manifolds for the future V8s. $56 million will go for the production of EV battery pack cooling lines.
“V8s?” you wonder.
Gerald Johnson, GM executive vice president, Global Manufacturing and Sustainability:
“We are announcing significant investments to strengthen our industry-leading lineup of full-size pickups and SUVs by preparing four U.S. facilities to build GM’s sixth generation Small Block V-8 engine.”
Yes, they will still be making a lot of ICE trucks and utes.
But the $64 million in the Defiance and Rochester plants for EVs is not insignificant, so let’s not think the whole EV undertaking is going back-burner.
Back to the context
According to the 2023 Capital Spending Survey that projects spending on machine tools and associated equipment conducted annually by Gardner Intelligence, U.S. manufacturing companies—from the smallest to the largest—are projected to spend a total $7.01 billion.
This announcement from GM is 13% of all of that projected spend.
Yes, a lot of money.
Here's the rest of that story:
$579 million will prepare Flint plant for sixth-generation engine, $216 million will upgrade Bay City plant
LANSING, Mich. – Governor Gretchen Whitmer and Lieutenant Governor Garlin Gilchrist II today applauded General Motors’ announcement that it is investing nearly $800 million in its Flint and Bay City plants, both of which will strengthen the automaker’s full-size truck and SUV business portfolio in Michigan and retain jobs across the two locations. Michigan won the vast majority of the $918 million investment from GM in four facilities across the country.
“GM’s $800 million investment in Michigan will retain good-paying jobs and enable us to build on our legacy as the place that put the world on wheels,” said Governor Gretchen Whitmer. “Just one year ago, we announced GM’s historic, $7 billion investment growing its electric vehicle manufacturing capabilities in our state. Today’s exciting announcement ensures GM’s truck and SUV components continue to be built in Michigan and builds a strong base for future decisions around electric vehicle and battery investments as well. I thank GM for its ongoing commitment to making its future right here in Michigan.”
Lieutenant Governor Gilchrist joined elected officials, union leaders, and GM executives at the company’s announcement this morning at the Flint Engine Plant.
“GM has invested more than $1.1 billion in Flint Engine since 2011, and more than $3.2 billion across all its Flint manufacturing plants during that same time,” Lieutenant Governor Gilchrist said. “This investment makes a return of the V-8 engine to GM’s birthplace of Flint, Michigan. It is a testament to the skill and experience of the Flint Engine workforce, and truly, to the talented manufacturing workforce in the entire state.”
General Motors will invest $579 million to prepare Flint Engine to assemble the company’s sixth generation family of Small Block V-8 gas engines along with the related block, crank and head machining. Flint will continue building the 3.0L turbo-diesel during the facility renovations. GM’s 3.0 L diesel is used in a variety of light-duty truck applications.
At the Bay City plant, GM will invest $216 million to prepare the facility to build camshafts, connecting rods and block/head machining supporting future V-8 production at the Flint Engine plant.
“GM’s decision underscores the strength of our automotive workforce and the statewide impact of this vitally important sector. The continued maintenance of GM’s manufacturing presence in Michigan across both its popular truck and SUVs models and facilities will support GM’s all-electric future,” said MEDC CEO and Michigan Strategic Fund President and Chair Quentin Messer Jr. “We appreciate GM’s continued vote of confidence and are proud to join the Whitmer administration, bi-partisan legislative leaders along with our local and labor partners as we celebrate GM’s expansions in Michigan.”
Today’s news comes on the heels of this week’s announcement by Business Facilities recognizing GM’s historic $7 billion investment in electric vehicle and advanced battery manufacturing as its 2022 Impact Awards. As the largest investment in the company’s history, the project includes a $4 billion investment to convert GM’s Orion Township assembly plant to produce full-size electric pickups and up to $2.5 billion to build Ultium’s third U.S. battery cell plant in Lansing, growing the state’s global leadership in electric vehicle and advanced battery production.
It also follows a host of additional investments made by the company since January 2020, including:
- A $2.2 billion investment at its Detroit-Hamtramck Assembly plant to produce battery electric trucks and other electric vehicles, creating more than 2,200 manufacturing jobs at the facility.
- Adding more than 1,200 jobs at its Lansing Grand River Assembly facility to support the launch of the Cadillac CT4 and CT5.
- A more than $100 million investment in the Lansing Delta Township Assembly plant to produce the next-generation GMC Acadia.
- A $32 million investment at the Flint Assembly plan for future production of heavy-duty Chevrolet Silverado and GMC Sierra pickups.
- A $17 million investment in the Romulus, Michigan propulsion plant to enhance automation and increase capacity of GM’s 10-speed truck transmission, which is used in full-size pickups and other key products, including the all-new Chevrolet Tahoe and Suburban, GMC Yukon and Yukon XL, and the Cadillac Escalade.
- A $3.5 million investment at Orion Assembly. An additional $750,000 will be invested at GM’s site in Brownstown Charter Township, Michigan. Both investments are related to additional production of the Cruise AV test vehicle at Orion Assembly.
- Developing the Wallace Battery Cell Innovation Center as a next-generation battery facility at its Global Technical Center campus in Warren.
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About Michigan Economic Development Corporation (MEDC) The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness, and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook,Instagram, LinkedIn, and Twitter.
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