General Motors Company (NYSE:GM) is considering the expansion of its Arlington Texas assembly plant.
The expansion is expected to boost GM’s SUV vehicle production. If the company decides to follow through with the expansion of the 60-year-old plant, the estimated budget will be around $1.3 billion.
General Motors Company (NYSE:GM) is considering the initiation of the massive investment plan in line with the increased demand for SUVs in the United States. Critics speculate that the increased demand for SUVs might be pushed by the consistent drop in fuel prices.
Refusing to go into details, the company’s Spokesperson, Ms. Jennie Ecclestone sent an Email that quoted the new plant as a business venture vested on boosting future production and performance of the company.
The extension of the Arlington assembly plant will see an increase in plant space by 1.2 million square feet. 589 new jobs will be created from the new extension, thus adding on to the 3000 jobs that already exist and are occupied. General Motors’ proposal involves using $307 million to fix up the physical situation of the plant while about $1 billion is expected to go to the purchasing and installation of new equipment. The company plans on optimizing the production so as to ensure efficiency in the production process.
A brief history of the firm points out its initial production process in 1954. Some of the vehicles manufactured from the plant include the Chevrolet Suburban and the Cadillac Escalade. The Escalade’s demand has increased so much that the General Motors’ Detroit plant is having a hard time trying to keep up with satisfactory supply.
Though all the signs are currently giving the proposed project the go sign to the proposed project, a public hearing will be held to discuss the matter before approval. The hearing will take place on 14 April.
The plant will put General Motors Company (NYSE:GM) on a path for long-term growth while at the same time, benefiting the state economy, through employment and goodwill.