GM to Spend $1.4B to Expand Texas Plant

July 15, 2015

July 15, 2015—General Motors will spend $1.4 billion, over a quarter of its U.S.-wide manufacturing investment, to expand its plant in Arlington, Texas, according to a report by USA Today.

In April, The Arlington city council approved a 10-year, $28.7 million package of tax abatements for a 1.2 million-square-foot expansion of the plant.

Construction is set to begin this summer and will be completed in 2018. Production of Chevrolet Tahoes and Suburbans, GMC Yukons and Yukon XLs, and Cadillac Escalades will not be disrupted by the construction.

Local officials in Arlington have said that the project will involve the addition of over 550 jobs, but company officials have said there will not be hiring as a result of the project but 4,180 jobs will be preserved at the plant.

"This super-sized investment reflects GM's commitment to our full-size SUV customers who expect nothing but the absolute best from us and their vehicles," said Cathy Clegg, vice president of GM North America manufacturing and labor relations, according to USA Today. "Today's investment will contribute to Arlington Assembly's winning tradition marked by strong customer focus, innovative thinking and teamwork."

The investment in the Arlington plant is the largest part of a $5.4 billion plan to upgrade 40 plants throughout the country. GM has detailed the plans for all but $900 million of that.

"These investments represent the power of our collaboration to create jobs and improve competitiveness, quality and our manufacturing base in this country," said Cindy Estrada, vice president of the United Auto Worker’s GM department, in a statement according to USA Today.

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