General Motors to expand plants
Posted: Wednesday, April 21, 2010 8:02 pm
KANSAS CITY, Kan. (AP) — General Motors Co., hoping to capitalize on its hot-selling sedans and a growing trust in American-made cars, says it will invest $257 million in plants in Kansas and Michigan.
GM CEO Ed Whitacre used an appearance at the company’s Fairfax Assembly Plant to formally announce the automaker’s early payback of $8.1 billion in government loans to the U.S. and Canada. He also said GM would expand production at Fairfax and the Detroit-Hamtramck plant, both of which will build the next generation of the popular midsize Chevrolet Malibu.
Whitacre said $136 million would establish Fairfax as the Malibu’s main production facility, news that drew an extended round of applause from workers and dignitaries gathered for the announcement.
“I like that reaction so much I might have to say it again,” Whitacre said.
Another $100 million would expand production at the Detroit facility and deliver a boost to Michigan’s bleak economy, Whitacre said.
GM got a total of $52 billion from the U.S. government and $9.5 billion from the Canadian and Ontario governments as it went through bankruptcy protection last year. The U.S. considered as a loan $6.7 billion of the aid, while the Canadian governments held $1.4 billion in loans.
Published in The Messenger 4.21.10