On June 5, General Motors announced its plans to invest more than $1 billion in two Michigan plants to produce its next-generation heavy-duty trucks.
The investment includes $788 million to prepare its Flint Assembly plant to build the heavy-duty and diesel trucks. Another $233 million is anticipated to be invested in the automakers’ Flint Metal Center to support the production of the vehicles in mid-Michigan.
Despite the automakers’ commitment to exclusively offer all-electric vehicles by 2035, GM continues to invest in traditional cars, including the Chevrolet Silverado and GMC Sierra heavy-duty pickups.
The investment announcement comes prior to contract negotiations between GM and the United Auto Workers Union (UAW).
For investors, UAW negotiation is primarily a short-term headwind every four years, resulting in higher costs. However, this year’s negotiations are expected to be fueled by a yearslong organized labor movement nationwide.
On the other hand, GM reported 2022 sales of its heavy-duty pickups increased by 38% compared to the year prior. Amounting to nearly 288,000 trucks sold.
Last week, UAW leaders officially outlined their main points for negotiation, including the restoration of a cost-of-living adjustment that was dropped during the Great Recession, more job security, and the abolition of a grow-in, or tiered, the pay system that sees members receive varying pay and benefits.
UAW Vice President Mike Booth, who is in charge of the union’s GM unit, said, “When business is thriving, as it has been for the past decade thanks to the dedication of UAW members, the corporation should continue to invest in its workforce.”
