GM Stock Rose After It Allocated $900M for Engine and EV Development

GM Stock

GM Stock (NYSE:GM)

On Friday, General Motors (NYSE:GM) announced its intention to make substantial production modifications that would need an investment of $918 million.

The whole amount is going to be invested in a variety of different institutions around the country. According to the manufacturer, most of the investment will go toward developing a sixth generation Small Block V-8 engine in Flint and Bay City, both located in the state of Michigan. According to GM, the Flint facility will get an investment of $579 million. In comparison, the Bay City plant will receive an investment of $216 million. To facilitate the production of new engines, facilities in Rochester, New York, and Defiance, Ohio, will each get $47 million and $12 million in capital investments, respectively.

In addition to the investment amount, no other information was supplied on developing the new engine.

The remaining $64 million of the $918 million will be divided between the Defiance and Rochester facilities so that castings and components for the expanding electric vehicle manufacturing activities of the corporation may be manufactured there. The largest portion of the money that is still available, $56 million, will be used to install battery pack cooling lines for electric vehicle manufacture scheduled to take place in Rochester.

“Today we are announcing major investments to bolster our industry-leading array of full-size trucks and SUVs,” Gerald Johnson, GM’s executive vice president of Global Manufacturing and Sustainability, said. “We are preparing four U.S. plants to construct GM’s sixth generation Small Block V-8 engine.” To quote the company’s CEO: “These investments, together with the hard work and devotion of our team members in Flint, Bay City, Rochester, and Defiance, allow us to manufacture world-class products for our customers and offer job stability at these sites for years to come.”

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