© general motors General | October 21, 2019
Major investments part of tentative UAW, GM deal
Details of the tentative agreement hatched between General Motors and UAW last week are emerging, including GM’s pledge to invest USD 3 billion in the Detroit-Hamtramck assembly plant.
Detroit-Hamtramck, due to close in January 2020, is the only one of four plants tagged for closure last fall that would remain open under terms of the contract. The three other plants already shuttered will stay closed permanently: Lordstown Assembly in Ohio; Baltimore Operations in Maryland; and Warren Transmission in Michigan. Automotive News, which obtained a copy of the tentative contract, reported that Detroit-Hamstramck would build electric pickups, vans and battery modules and employ 2,225 people at full capacity. The USD 3 billion spend represents one-third of USD 9 billion that potentially would be spent on GM's U.S. plants if the contract is signed. Other investments pledged by GM include USD 1.5 billion and 2,000 jobs allocated to Wentzville Assembly in Missouri, which would build the next generation of GM's midsize pickups. Another USD 1 billion would go to the Lansing Delta Township plant in Michigan and Spring Hill Assembly in Tennessee to build next-generation midsize utility vehicles. Together, those investments amount to 5,000 jobs, including both created and existing positions. GM’s Warren, Michigan facility would receive approximately USD 200 million toward a new-vehicle program in pre-production operations and retain about 75 jobs. GM would also commit investing USD 2 billion in U.S. plant refurbishments and USD 1.3 billion in indirect investments. In a statement emailed to Automotive News, GM said it would “remain committed” to creating jobs in Ohio and plans to bring battery cell manufacturing operations to northeast Ohio, which would create 1,000 jobs. The company said it will move forward with plans to sell the Lordstown complex to Lordstown Motors Corp., which has stated its intention to build electric pickups for commercial fleet enterprises, creating 400 jobs at the site initially. The Ohio jobs are not part of the UAW agreement with GM. UAW's GM national council voted last Thursday to extend the union's national strike against the automaker until members ratify the tentative agreement. The voting process began Saturday and is expected to be completed by Oct. 25.