US Markets
Monday, November 6th, 2023 1:15 am EDT
Key Points
- GM’s $13 Billion Investment Plan: General Motors (GM) is set to invest approximately $13 billion in U.S. facilities by April 2028, as outlined in the recent tentative agreement with the UAW. These investments include projects such as $4 billion in Orion Assembly near Detroit, $2 billion in Spring Hill, Tennessee for new electric vehicles, and $1.25 billion for a future electric vehicle plant at Lansing Grand River. The funds will also support assembly plants, add additional volume, and invest in engine and components plants.
- UAW’s Tentative Agreement and Wage Increases: The tentative agreement between GM and the UAW includes substantial wage increases and enhanced benefits for autoworkers, with a 25% pay raise, bonuses, profit-sharing payments, and a $5,000 ratification bonus. The wage increases will be implemented in stages, starting with an 11% increase upon ratification, followed by a 3% annual increase for three years, and a 5% increase in September 2027. The agreement also aims to reduce wage tiers and bring different levels of workers closer to traditional assembly plant worker pay.
- Plans to Leverage Record Contracts and Unionize Other Automakers: UAW President Shawn Fain reiterated the union’s plans to use the record contracts with GM, Ford, and Stellantis as leverage to unionize workers at other automakers, including Toyota, Honda, Volkswagen, Hyundai, and Tesla. The goal is to secure similar “record contracts” for auto workers across the country. Toyota had announced plans to increase wages at its U.S. factories, but the rates are still below the wages agreed upon in the UAW’s tentative agreements with Detroit automakers. Voting on the tentative agreements with Ford, Stellantis, and GM is underway or expected to take place in the coming weeks.
General Motors (GM) is planning to invest approximately $13 billion in U.S. facilities by April 2028, according to a tentative agreement with the United Auto Workers (UAW) union. Some of the planned investments, such as $4 billion in Orion Assembly near Detroit and $2 billion in Spring Hill, Tennessee for new electric vehicles, have already been announced. Others, like the $1.25 billion for a future electric vehicle plant at Lansing Grand River, are new projects. These investments will include funds for assembly plants to support additional volume, engine and components plants.
The details of the tentative agreement were disclosed after local UAW leaders approved the pact, which still needs ratification by a majority of the union’s 46,000 members at GM. GM’s U.S. investments under this tentative agreement are less than those announced by Ford and Stellantis, with GM investing $13 billion compared to $8.1 billion by Ford and $18.9 billion by Stellantis. However, these numbers do not include previously announced investments in joint-venture battery cell plants in the U.S.
The tentative agreement with UAW includes 25% pay increases, bonuses, profit-sharing payments, and a $5,000 ratification bonus for autoworkers. The raises will be implemented in stages, including an 11% increase upon ratification, followed by 3% annual increases for three years, and a 5% increase in September 2027. The agreement also includes efforts to reduce wage tiers, bringing different levels of workers closer to traditional assembly plant worker pay. Additionally, new workers at GM’s Ultium Cells joint venture for battery cells will see hourly wage increases of between $6 and $8.
The UAW intends to use these record contracts with GM, Ford, and Stellantis as leverage to unionize workers at other automakers, including Toyota, Honda, Volkswagen, Hyundai, and Tesla. Toyota has recently announced plans to increase wages at its U.S. factories but is still below the wage rates agreed upon in the UAW’s contracts with Detroit automakers. The ratification process for the tentative agreement is underway, with Ford workers already voting on the deal, while GM and Stellantis workers are expected to vote on the agreements in the coming weeks.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/11/04/gm-expected-to-invest-13-billion-in-us-plants-under-new-uaw-deal.html
