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Financial News USA
May 23


GM Helps Build New Detroit PDF Print E-mail
The resurgence of Detroit continued Wednesday as GM said Wednesday it will add two shifts and about 2,500 jobs at the historic Hamtramck assembly plant.

The workers will build the new Chevrolet Malibu midsize sedan and the next generation Impala, alongside the Chevrolet Volt and Opel Ampera electric cars, which will be built exclusively in Hamtramck.

GM said it will invest $69 million investment in tooling and equipment to support the Impala. That is in addition to a $121 million investment, announced last month, to support Malibu production. Hamtramck currently has 1,121 hourly and salaried employees.

This spring's growth adds another chapter to the plant's long-troubled history, which began when a historic neighborhood was razed in 1981 so that GM could expand into a new plant with modern production technology that did not initially work very well.

But that was old, bloated GM. Wednesday's announcement brought a different symbolism, of a revived, more agile company that is repaying the faith of the Bush and Obama administrations that agreed to bail it out. The new Detroit is also symbolized by Chrysler's widely praised Imported from Detroit Super Bowl ad.

"Filling this plant with new work is very satisfying because GM is dedicated to helping rebuild this city," said GM North America President Mark Reuss, in a prepared statement. "We are confident in the flexibility of the plant, the excellence of our workers and the great cars assembled here."

Two weeks ago, GM CEO Dan Akerson announced the company would invest about $2 billion in eight states, mainly in the Midwest, over the next few months, and would create or retain about 4,000 jobs at 17 plants. Speaking in Toledo, Ohio, Akerson said the company would invest $240 million to expand its Toledo transmission plant, where 250 jobs would be created or retained.

Now it seems that GM is seeking to single-handedly rebuild the Midwest economy. The automaker has recently announced investment and job growth in Bowling Green, Ky., home of the Chevrolet Corvette, as well as Flint and Bay City, Mich.

It remains to be seen whether GM, which downsized in bankruptcy court under the direction of Obama administration officials, can avoid once again becoming the bloated, insular company that once razed a thriving neighborhood to build the Hamtramck plant.

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