General Motors will invest $200 million in two Oakland County plants to prepare for production of a yet-to-be-named new model.
The Orion assembly plant will received $160 million for tooling and equipment, while GM will spend $40 million at the Pontiac Metal Center for new dies.
The projects are part of nearly $300 million in Michigan investments that GM CEO Mary Barra mentioned last month in a speech at the Detroit Economic Club.
“Today’s announcement is a shot in the arm for these two terrific plants,” Cathy Clegg, GM North America manufacturing vice president, said in a statement Friday. “We’re committed to growing our brands and producing the highest-quality and safest vehicles for our customers.”
The investments will not create new jobs, but they come almost five years after GM invested $575 million to upgrade the two factories to prepare them to launch the Buick Verano and Chevrolet Sonic.
“I’m confident that our members represented by UAW Locals 5960 and 653 will bring the same hard work and quality as they always do to the new vehicle program,” said Cindy Estrada, UAW vice president of the GM Department. “UAW members are proud to be an integral part of an industry turnaround that makes investments such as this possible.”
Earlier this month GM said it will begin laying off up to 160 workers at the Orion assembly plant in January to balance production more closely with expected sales. The plant currently has about 1,900 hourly and salaried employees.
GM declined to say what new model will be built in Orion or when production will start.