Economy, Auto
0

GM Mulls $1b Internal Overhaul

GM Mulls $1b Internal OverhaulGM Mulls $1b Internal Overhaul

General Motors, formally part owned by the American government, has announced it may plan to spend as much as $1 billion renovating its Technical Center, a faculty which is over half a century hold, Bloomberg reported on Monday.

The renovation to the technical home of the world’s former number one includes offices for 2,500 new employees specializing in electrical engineering, software development and information technology.

GM has kept quiet about the proposed overhaul, and wasn’t open for comments by the time of publishing. Since the fall in the price of oil and subsequently gasoline, the automaker is also supposedly mulling a $1.3 billion expansion of its Arlington, Texas assembly plant. The center is well known for its production of sport-utility vehicles.

The Detroit based company looks to unify many of its global car models with a streamlined range which can be sold in most major markets. The company is using this new tactic to cut waste and offer more amenable prices and vehicles to buyers.  

The news of the upgrading of facilities follows another recent announcement by the Canadian government, as it sold its final 4.6 percent stake in the government last Monday. The Canadian federal government said it will sell its 73.4 million shares of General Motors Co. stock to Goldman Sachs & Co., ending nearly six years of government ownership into the Detroit automaker.

The shares would be worth about $2.7 billion based on GM’s close of $36.66 a share Monday.

 

Financialtribune.com