© Reuters. FILE PHOTO: A Chevrolet Suburban drives past the General Motors assembly plant in Arlington, Texas on June 9, 2015. REUTERS/Mike Stone
By David Shepardson
(Reuters) – General Motors said on Thursday it will invest more than $500 million in an assembly plant in Arlington, Texas, to prepare it for production of the next generation of its internal combustion engine full-size SUV.
The Detroit automaker is making a series of announcements this month. Sources told Reuters that efforts are being planned to retool existing auto plants in North America and introduce more efficient next-generation internal combustion models. General Motors faces increasingly stringent emissions requirements from the state of California and the Environmental Protection Agency (EPA). Sources said the total investments announced this month could reach about $3 billion.
General Motors said Monday it plans to invest more than $1 billion to retool two manufacturing sites in Flint, Michigan, to prepare for a new generation of its heavy-duty internal combustion engine trucks.
The Texas investment will be used to provide new tooling and equipment in the stamping and assembly areas of the plant that manufactures the company’s full line of full-size SUVs, including the Chevrolet Tahoe and Suburban.
GM, which has pledged to end production of gasoline-powered vehicles by 2035, said the Texas announcement highlights the company’s commitment to continue providing customers with a strong portfolio of (internal combustion) vehicles for years to come.
GM said on Tuesday it would invest C$280 million ($210 million) in Canada’s Oshawa Group to produce the next generation of full-size internal combustion engine trucks.
Records released Friday showed GM paid $128.2 million in fines for failing to meet corporate average fuel economy (CAFE) program requirements for 2016 and 2017.
The EPA proposed in April a 56% reduction in projected average fleet emissions above the 2026 requirements.
General Motors CEO Mary Barra and Chief Manufacturing Officer Gerald Johnson met with Michigan lawmakers on Capitol Hill Wednesday to outline its efforts to meet stringent emissions requirements, investment strategies and plans for autonomous vehicles.
And GM is facing pressure from the United Auto Workers union, which will enter contract talks with the three Detroit automakers this summer. The UAW is seeking significant pay increases, benefits, and pay improvements for those working on GM’s joint battery manufacturing projects.