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  • GM Announces $1.4 Billion Investment For Arlington SUV Plant

GM Announces $1.4 Billion Investment For Arlington SUV Plant

Largest Single Plant Investment in U.S. This Year

Jul 14, 2015
Parts of California may be experiencing $5 a gallon gas this week, but for most of the country, oil inventories are up and gas prices are down. Low gas prices usually bode well for fullsize truck and SUV sales, and in anticipation of relative stability in fuel prices in the years ahead, General Motors has just announced a $1.4 billion investment in its Arlington, Texas, plant, which builds the company’s popular fullsize SUVs: the Chevrolet Tahoe and Suburban, GMC Yukon and Yukon XL, and Cadillac Escalade and Escalade ESV.
Among the upgrades Arlington will receive as part of the 10-figure investment are a new body shop, a new paint shop, general upgrades to the assembly line, and new tooling and equipment. The most recent investment follows a multi-million dollar investment in 2011, bringing the cumulative investment in Arlington to approximately $2 billion. The investment announcement comes on the eve of contract negotiations with the United Auto Workers (UAW).
Across the three brands, GM has a commanding market share of the fullsize SUV segment. Although having a rap for being gas hogs, the latest generation of GM SUVs are actually surprisingly fuel efficient, with the 2WD Chevrolet Tahoe with the 5.3L EcoTec3 V-8 getting 16 mpg city and 23 mpg highway.
Source: General Motors

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