We may earn commissions if you use the recommended services on this site.  

GM Set to Invest $13 Billion in U.S. Facilities as Part of New UAW Agreement

Latest Business News

General Motors to Invest $13 Billion in U.S. Facilities Under New UAW Deal

General Motors (GM) has announced plans to invest approximately $13 billion in U.S. facilities by April 2028, according to the United Auto Workers (UAW) union. The investment is part of a recent tentative agreement between GM and the UAW. Some of the planned investments, such as $4 billion at Orion Assembly in suburban Detroit and $2 billion in Spring Hill, Tennessee, for new electric vehicles, have already been announced. Other new investments include $1.25 billion for a future electric vehicle plant at Lansing Grand River. The agreement, which still needs ratification from the union's 46,000 members, follows similar deals reached by Ford and Stellantis. GM's investments in the U.S. under the tentative agreement fall behind those announced by the union at Ford and Stellantis, with $8.1 billion and $18.9 billion respectively. However, the details of the agreement have not been disclosed by GM, who referred back to a statement by CEO Mary Barra expressing satisfaction with the tentative deal and the company's commitment to investing in the future. The tentative labor agreement, reached after several weeks of targeted strikes by the UAW against GM, Ford, and Stellantis, includes significant wage increases and economic gains for autoworkers. The deal offers 25% pay increases, bonuses, profit-sharing payments, and a $5,000 ratification bonus. The pay raises include an 11% increase upon ratification, followed by 3% increases in the next three years, and a 5% increase in September 2027. The agreement also aims to reduce wage tiers and bring workers at different levels closer to parity. The UAW plans to leverage the record contracts with GM, Ford, and Stellantis to unionize other automakers. UAW President Shawn Fain reiterated the union's goal of organizing auto workers across the country, emphasizing that other automakers making record profits should also provide fair contracts to their employees. Toyota Motor recently announced plans to increase wages at its U.S. factories, but the rates still fall below the UAW's tentative agreements with the Detroit automakers. UAW members at Ford have already begun voting on their tentative agreement, with a significant majority of workers at Ford's Michigan Assembly Plant supporting the pact. UAW members with Stellantis and GM are expected to vote on the deals in the coming weeks.

GM's $13 Billion Investment: A Catalyst for New Business Formation?

General Motors' (GM) announcement of a $13 billion investment in U.S. facilities could potentially set a new precedent for industrial expansion and new business formation. This massive investment, part of a tentative agreement with the United Auto Workers (UAW) union, signals GM's commitment to bolstering its manufacturing capabilities, particularly in the burgeoning electric vehicle sector.

Investment in Electric Vehicles

GM's planned investments in Orion Assembly and Spring Hill, Tennessee, for new electric vehicles, could potentially stimulate the growth of new businesses in these regions. With the increasing demand for electric vehicles, there is likely to be a corresponding need for supporting industries and services, providing fertile ground for new business formation.
Wage Increases and Economic Gains
The tentative labor agreement, which includes significant wage increases and economic gains for autoworkers, could also have a ripple effect on local economies. Increased wages mean increased purchasing power, which could stimulate demand for goods and services and spur the growth of new businesses to meet this demand.

Unionization Efforts and Fair Contracts

The UAW's plans to leverage the record contracts with GM, Ford, and Stellantis to unionize other automakers could potentially lead to widespread improvements in wages and working conditions across the industry. This could make the auto industry more attractive to potential employees, potentially leading to an influx of skilled workers and fostering an environment conducive to new business formation. In essence, GM's $13 billion investment could potentially have far-reaching impacts, not only in strengthening its own position in the auto industry but also in stimulating new business formation and contributing to economic growth.
Story First Published at: https://www.cnbc.com/2023/11/04/gm-expected-to-invest-13-billion-in-us-plants-under-new-uaw-deal.html
Brought to you by BusinessFormation.io
Know Your State's Registered Agent Requirements: What is a Registered Agent
Learn How To Create An LLC: What Is An LLC and How To Start an LLC Online

LLC Filing & Registered Agent Services

Compare Online LLC Filing Services Today

We work with the market leaders in business formation and registered agent services.

Getting started is simple and inexpensive. Form your business today & secure your brand name before someone beats you to it! Click below to view the Top 3 Best LLC and registered agent service providers.
View Top 3 Providers Now

Filing An LLC Can Be Complicated

Streamline Your LLC Filing Online for $39

Northwest Registered Agent is the best-rated service for first time filers.

Get professional LLC formation & registered agent services for only $39 + state filing fee. This offers includes your full LLC setup, plus a private business address, lifetime support, and more.

Trusted by Millions. Save 82% Today.