The Wall Street Journal: GM mulls expansion of SUV plant in Texas
General Motors Co. is considering a $ 1.3 billion expansion of its Arlington, Texas, assembly plant to boost production of its large sport-utility vehicles, an indication the company sees the revival in demand for the profitable vehicles as potentially long lasting.
The auto maker would add another 1.2 million square feet to the plant, resulting in the creation of 589 new jobs, according to the plan outlined in Arlington documents. GM GM, +1.06% would spend $ 307 million on the physical expansion and another $ 986 million on new equipment.
The 61-year-old plant is home to the GMC Yukon. Yukon XL, Chevrolet Suburban and Tahoe, along with the Cadillac Escalade. SUVs are the hottest vehicles in the U.S. market as gasoline remains below $ 2.50 a gallon.
GM has had some trouble meeting demand for its larger SUVS, especially for the Cadillac Escalade.
An expanded version of this report appears at WSJ.com.