General Motors Co. (GM - Free Report) announced its decision to build a new stamping facility at its Lansing Grand River Assembly plant in the U.S. The automaker intends to invest $174 million in the plant, which will create about 145 new jobs.
The stamping facility is likely to start operations from 2016 and will be producing stamping components for the Cadillac ATS and CTS family of vehicles. With this, General Motors expects to see savings of $14 million in material handling related logistics costs every year.
Lansing Grand River Assembly is the second U.S. assembly plant of General Motors. It mainly manufactures vehicles like Cadillac ATS, CTS and the CTS V-series performance versions. The unit focuses on delivering enhanced quality which will be further supported by the stamping facility addition.
Importantly, General Motors has invested over $530 million in the Lansing Grand River Assembly plant since 2009. In 2010, the automaker expended $190 million for the addition of production facility for Cadillac ATS which made way for 600 new jobs. Also in the same year, General Motors spent $37 million for tooling and equipment at the plant in order to improve its manufacturing capabilities.
In 2011, General Motors invested another $88 million for the manufacture of the all-new 2014 Cadillac CTS sedan at the Lansing Grand River Assembly plant. Also, the following year, the company started manufacturing the next-generation Camaro in the plant. Further, in 2013, General Motors invested $44.5 million and created 200 jobs for the new logistics optimization center at the plant.
General Motors currently carries a Zacks Rank #3 (Hold). Better-ranked automobile stocks worth considering include Tesla Motors, Inc. (TSLA - Free Report) , Visteon Corporation (VC - Free Report) and STRATTEC Security Corporation , all of which sport a Zacks Rank #1 (Strong Buy).