General Motors Co. Wednesday announced it will invest $63 million in an expansion of its Lansing Delta Township Assembly Plant, part of a $300 million Michigan investment GM CEO Mary Barra previewed this week. While no new jobs are expected, the work is expected to retain 38 jobs.
The Detroit automaker said it will expand its 2.8 million-square-foot Lansing Delta Township plant by 263,000 square feet; construction has started and is expected to be completed by the end of 2015. The plant currently builds the Chevrolet Traverse, GMC Acadia and Buick Enclave SUVs.
“Today’s announcement is the latest example of our ongoing efforts to strengthen key plant capabilities,” GM North America Manufacturing Vice President Cathy Clegg, said in a statement. “We’re committed to producing the highest quality and safest vehicles in the market, which will help us earn customers for life. This is why facility investment is so important.”
GM, in a July property tax abatement application to the city of Lansing, said it considered a $37.5 million expansion to construct “several body shop and general assembly additions to support operations.” The application stated the investment would not result in new jobs, but would retain 38.
GM spokeswoman Erin Davis said GM’s investment is larger than previously noted because it also includes expansion of the paint shop, which was not in its application.
The plant sits on a Lansing-Delta Township tax-sharing area and the Lansing City Council approved an abatement for the project valued at $2 million over 12 years.
Lansing Delta Township is GM’s newest plant in North America. It opened in 2006 and employs 3,295 workers, including more than 3,000 hourly workers represented by UAW Local 602.
The expansion will add more than 181,000 square feet in the body shop for new robots and flexible tooling, about 28,000 square feet in the assembly area and 54,000 square feet in the paint shop to use improve sealers and coatings to boost corrosion resistance.
“The investment in the plant and in UAW Local 602 members means workers will have an updated environment in which they can continue delivering quality workmanship for years to come,” said UAW Vice President Cindy Estrada, who directs the UAW’s GM department.
Since 2009, GM has announced investments totaling nearly $600 million at Lansing area facilities, including a $174 million stamping facility at the Lansing Grand River Assembly Plant that will create or retain about 145 jobs.