General Motors has announced yet another investment in their truck-making capacity with another $20 million for their Arlington SUV plant.
Currently, General Motors employs roughly 4,500 people at their Arlington, Texas manufacturing plant. This plant specializes in full-size SUVs after converting from car production in 1997. At GM, full-size SUVs are a big deal, with no less than five nameplates in the segment: the Chevrolet Tahoe, Chevy Suburban, GMC Yukon and Yukon XL, and the Cadillac Escalade.
Large SUVs are a big deal for GM as they produce some of the highest profits in the industry. And GM is prepared to protect that profit with another $20 million investment at Arlington to upgrade the factory’s conveyor system. Those upgrades are scheduled to be completed next year.
“We’ve been building trucks in Texas for more than 20 years, and our additional investment in Arlington Assembly is proof of our commitment and confidence in our Arlington team,” said Gerald Johnson, GM executive vice president of Global Manufacturing. “We are counting on the Arlington team to continue focusing on building the highest quality products possible for our customers while preparations continue for the launch of the next generation of our full-size SUVs.”
Since 2015, General Motors has invested $1.4 billion in Arlington to upgrade the facility’s paint shop, body shop, and for general assembly area upgrades. That number contributes to the $23 billion GM has spent upgrading North American facilities since 2009.
News of GM’s investment in big SUVs comes hot off the heels of another $150 million investment in Flint, Michigan, where GM builds heavy-duty versions of the Silverado and Sierra pickups. Another $24 million was spent at Fort Wayne Assembly Plant to increase full-size pickup production of the same models.
Investment announcements such as these have become much more common in the current political climate. US lawmakers continue to threaten tariffs on imported goods, including cars and materials, and GM likely wants to ensure public opinion remains positive and to remind politicians that GM continues to employ many thousands of voters.