General Motors Plans Midwestern Factory Upgrades At Cost Of $1.3 Billion (NYSE:GM)

General Motors has announced plans to invest $1.3 billion into projects to upgrade five of its factories in the Midwest. The money will be spent on upgrades to facilities in Michigan, Ohio and Indiana. The planned projects include a major overhaul of one of the company’s highly profitable truck plants. According to G.M., the investments would create or preserve about 1,000 manufacturing jobs.

Automakers have seen a year of big profits and surging sales in the United States. The automotive sector was one of the economy’s bright spots in 2013 and the automakers have expressed confidence that growth will continue in 2014. 14.24 million new cars and trucks were sold by manufacturers from January through November of 2013.

In anticipation of more good times to come, American automakers are investing heavily in their domestic operations. G.M.’s announcement came about a week after reports that Ford Motor would be hiring 5,000 new workers in 2014 and would introduce 16 new vehicles in North America in the near future. Joe Ashton, an official of the United Auto Workers union, said, “Today’s announcement is a win for American workers.” The United Auto Workers union represents 7,500 employees at the five affected plants.

The announcement disclosed that $600 million would be invested in the company’s pickup truck plant in Flint, Michigan. Upgrades to the Flint facility will include building a new paint shop. Another $493 million will be spent at another Michigan factory to expand capacity for a high-tech V-6 engine and to produce a new transmission with better fuel economy.

Executives at the company believe that the upgrades are needed to position the company to take advantage of more growth in the critical American market. Mark Reuss, head of G.M.’s North American division, said during the announcement, “Today’s announced plant upgrades continue the momentum of a resurgent auto industry.” G.M. is currently the nation’s largest auto company.