GM to invest $1.3B in five factories - WNEM TV 5

GM to invest $1.3B in five factories

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FLINT, Mich. (AP) -

General Motors says it will invest $1.3 billion at five factories in three states so they can build higher-quality trucks and more fuel-efficient engines and transmissions.

About $600 million will go to the Flint, Mich., assembly plant for a new paint shop and other upgrades. The plant makes full-size pickup trucks. GM North America President Mark Reuss says investments are important everywhere, but especially so in Flint, the company's birthplace.

An engine plant in Romulus, Mich., near Detroit will get $493 million to build a new V-6 engine and 10-speed automatic transmissions.

Around $121 million will go for a logistics center at a Detroit factory, while GM will spend $31 million in Toledo, Ohio, to build more six-speed transmissions.

A casting plant in Bedford, Ind., will get $29.2 million to make transmission parts.

It's unclear how many jobs will be added. GM would say only it will create or keep 1,000 positions.

Meanwhile, retiring General Motors Co. CEO Dan Akerson says the government bailout of his company was a net gain for taxpayers -- even though they lost $10.5 billion.

Akerson says if GM had gone under, taxpayers would have had to pick up the company's $26 billion pension obligation. The government also would have lost billions in tax revenue and benefit payments.

He says GM won't repay the $10.5 billion because the government agreed to make loans and take company stock in exchange for the bailout.

GM repaid its loans and the government sold the last of its stock last week The government spent $49 .5 billion to save GM in 2008 and 2009.

Copyright 2013 Associated Press. All rights reserved.

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