General Motors will spend $5.4 billion to upgrade U.S. plants

General Motors said Thursday that it will invest $5.4 billion in its U.S. factories over the next three years as part of a broader effort to modernize production facilities and secure jobs.

The nation’s largest automaker has been methodically upgrading and expanding its manufacturing plants in the United States and elsewhere since its bankruptcy and government bailout in 2009.

The moves are another example of the way auto companies are taking advantage of healthy profits and a strong American car market to increase spending on plants and new technology.

GM’s investments include $520 million for tooling and equipment at a plant near Lansing, Mich., that makes sport utility vehicles, $139.5 million for a new body shop and improved stamping facilities in Warren, Mich., and $124 million at a Pontiac, Mich., center that makes steel body panels.

Details on the remaining $4.6 billion will be provided “over the next several months,” the company said.

There was no mention of spending plans for GM’s Fairfax plant in Kansas City, Kan. GM chief executive Mary Barra is scheduled to visit the Fairfax plant on Monday to celebrate the recent production of the company’s 500 millionth vehicle globally. She will be joined by Alan Batey, GM’s North America president.

The two GM executives will hold a news conference at the plant Monday morning. GM has not provided any other details.

The Fairfax plant builds the Buick LaCrosse and the Chevrolet Malibu. The plant has about 3,900 hourly and salaried employees and recently completed $600 million in improvements, including a new paint shop.

GM’s announcement Thursday brings to $16.8 billion the investments by GM in its U.S. facilities since exiting a government-assisted bankruptcy in June 2009, according to the statement.

GM also has been investing outside the U.S., with a joint venture in China saying last week that it plans to spend $16 billion by 2020 to expand in that market and a March statement by GM that it will put $5 billion into plants in Mexico.

The U.S. investment comes as the Detroit-based company and the United Auto Workers union prepare to begin talks to replace a contract that expires in September. Cathy Clegg, GM’s vice president for North American manufacturing, said in the statement that “together with our UAW partners, we’re working hard to exceed consumers’ ever-increasing quality expectations.”

Ford has also been steadily investing in its North American operations, including its Claycomo plant, which builds the F-150 pickup truck and Transit van.

Fiat Chrysler is studying plans to expand a plant in Ohio that builds Jeep Wranglers or move the next-generation Wrangler to an existing plant.

This story was originally published April 30, 2015 at 9:58 AM with the headline "General Motors will spend $5.4 billion to upgrade U.S. plants."