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GM: $2B Investment Means Thousands Of Jobs

DETROIT (WWJ) - General Motors says it's going to invest $2 billion in 17 of its U.S. facilities. The company says that investment will create or preserve more than 4,000 jobs.

"These investments are key to our growth, key to our future success," said GM CEO Dan Akerson, at a ceremony at GM's Toledo powertrain plant.

GM not detailing many of the investments, saying that announcements would be made when the timing was right.   GM did announce that the Toledo plant would be updated to build a new 8 speed transmission, but didn't say what product that transmission would go into.  The $2 billion also includes $131 million invested in the Bowling Green, Kentucky plant, to prepare for the next generation of Corvette.

The company also did not confirm earlier reports that the investment would mean a second shift at the Detorit-Hamtramk plant, but many local officials feel that this will end up as good news for Michigan and Detroit.  A GM spokesman told WWJ that they may have more to announce later this week.

Calling it "great news for GM and for Michigan," Senator Debbie Stabenow said more than half of those jobs are expected in our state.

GM's CEO said that it's also great news for his comapny, and "great news for America."

"We are doing this because we are confident about demand for our vehicles and the economy," said Akerson.

Of the four thousand jobs coming out of the investment, Akerson said that about 1300 would be workers currently on layoff, then GM would start hiring new workers.  Those new workers would make the second tier entry level wage.  While that's half of the wage paid to other auto workers, the UAW says it's an opportunity to add jobs, that are very much needed.

"General Motors is moving in the right direction," says UAW Vice President Joe Ashton.  "The UAW is moving in the right direction.  We're willing to discuss anything that creates jobs, and gives us more capacity than we've had in the past."

The union has said it expects entry level workers to have the opportunity, over the long term, to move into first tier jobs.  Ashton also said that he expects to be able to reach a contract with GM this year, without any problems.  Agreement on that from CEO Dan Akerson.

"Neither one of us want to be considered greedy management or bad union," he said.  "This is not constructive.  It's not good for our customers.  It's not good for our shareholders.  It's not good for our employees."

Akerson and Ashton were joined at the Toledo plant by Ohio's new governor John Kasich.

The Center for Auto Research estimates that the spinoff imapct of the investment will be very large, adding $2.9 billion to the U.S. Gross Domestic Product, and adding or retaining 28,000 jobs.

That number includes jobs created at GM and its suppliers, and jobs that are added because of the money those workers spend.

"There is no greater evidence of the positive effect of the historic federal intervention than large new investments in major U.S. automotive facilities on the part of the rescued firms such as General Motors," said Sean McAlinden, executive vice president of research and chief economist at CAR.

That's something that was echoed from the White House today, which again emphasized the importance of not only the assistance given to General Motors, but changes that were forced upon the company.

"Because of this "tough love," the American auto industry is now positioned to grow and prosper as the economy recovers," said Ron Bloom--special assistant to the President for manufacturing, in a White House Blog post.  "Since GM and Chrysler emerged from bankruptcy in June 2009 the auto industry has added 115,000 jobs – the fastest pace of job growth in the auto industry since 1998. Last year, for the first time in 16 years, the Detroit Three actually gained market share compared to their foreign counterparts."

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