GM is expected to invest $13 billion in U.S. facilities

General Motors (GM) is planning to invest approximately $13 billion in U.S. facilities by April 2028, according to the United Auto Workers (UAW) union. This investment is part of the recent tentative agreement between the union and the automaker.

GM has already announced some of the planned investments, such as $4 billion for the Orion Assembly plant in suburban Detroit and $2 billion for the Spring Hill plant in Tennessee, which will be used for manufacturing new electric vehicles. Additionally, there will be a new electric vehicle plant at Lansing Grand River, which will receive $1.25 billion in funding.

These investments will primarily be allocated to assembly plants that support or increase production capacity, as well as engine and components plants.

The details of the tentative agreement were revealed on Saturday after local UAW leaders with GM approved the agreement. However, it still needs to be ratified by a simple majority of the union's 46,000 members who work for the automaker. GM was the last Detroit automaker to reach a tentative agreement, following Ford Motor and Stellantis, the parent company of Chrysler. 

When comparing the U.S. investments made by the three automakers through their respective tentative agreements, GM's investment amounts to $13 billion, while the union announced $8.1 billion for Ford and $18.9 billion for Stellantis, which includes $6.2 billion for previously announced parts plants in Kokomo, Indiana.

The details released by the union for GM do not include the billions of dollars previously announced for the construction of four joint-venture battery cell plants in the U.S., including three upcoming facilities.

GM declined to provide further comments on the released details, referring back to a statement made by CEO Mary Barra when the tentative deal was initially announced. Barra stated that GM is pleased to have reached an agreement that acknowledges the contributions of the team and allows for continued investments in the future. She also mentioned the company's commitment to providing good jobs in the U.S. and delivering exceptional products to customers.

The tentative labor agreement was announced after approximately six weeks of targeted strikes by the union against GM, Stellantis, and Ford, also known as the "Big Three" automakers. These work stoppages began on September 15 when the sides failed to reach agreements covering the 146,000 UAW members employed by the automakers.

UAW Vice President Mike Booth highlighted the substantial wage increases and economic gains included in this contract, stating that they are unprecedented. He mentioned that the gains in this contract are worth more than four times the gains made in the previous contract.

Similar to the tentative agreements with Stellantis and Ford, the deal with the UAW includes a 25% pay increase for autoworkers, along with bonuses and enhanced benefits such as profit-sharing payments and a $5,000 ratification bonus.

The 25% raises will include an 11% increase upon ratification, followed by a 3% increase in the subsequent three years, and finally, a 5% increase in September 2027.

At GM, the union has made significant progress in reducing the wage tiers for workers at assembly plants. UAW President Shawn Fain stated that some workers will experience an immediate 89% raise if the agreement is ratified.

Eliminating wage tiers was one of the central goals of these negotiations, and while the union did not achieve all its objectives, it made substantial strides at GM, surpassing the efforts made by the other two major automakers.

Furthermore, the agreement includes the addition of new workers at GM's Ultium Cells joint venture for battery cells. These workers will receive a raise of between $6 and $8 per hour, according to Fain's confirmation on Saturday.

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