According to recent reports, General Motors (GM) is anticipated to invest a staggering $13 billion in U.S. facilities under the new agreement with the United Auto Workers (UAW). This significant investment is expected to create thousands of jobs and contribute to the growth of the U.S. economy. With this move, GM is demonstrating its commitment to strengthening its presence in the United States and supporting its workforce. The company's decision to invest such a substantial amount is a testament to its confidence in the U.S. market and its potential for growth. This is undoubtedly a positive development for both GM and the U.S. automotive industry as a whole.
GM's Planned Investment
General Motors (GM) has announced plans to invest approximately $13 billion in U.S. facilities by April 2028, according to the United Auto Workers union. The tentative agreement between the union and the automaker includes several new investments, such as $1.25 billion for a future electric vehicle plant at Lansing Grand River. GM has already revealed some of its planned investments, including $4 billion at Orion Assembly in suburban Detroit and $2 billion in Spring Hill, Tennessee, for new electric vehicles.
Comparison with Other Automakers
The automaker's U.S. investments through the terms of the 4 ½-year tentative agreement compared to $8.1 billion announced by the union at Ford and $18.9 billion at Stellantis.
The details disclosed by the union for GM did not include the billions in previously announced investments in four joint-venture battery cell plants in the U.S., including three upcoming facilities.
Tentative Labor Agreement
The tentative labor agreement was announced after roughly six weeks of targeted strikes by the union against GM, Stellantis and Ford, also known as the “Big Three” automakers. The work stoppages began on Sept. 15 after the sides failed to reach deals covering 146,000 UAW members with the automakers by a strike deadline.
The union discloses investment and product details to portray job security to members. The deal includes 25% pay increases, bonuses and other enhanced benefits for autoworkers, such as profit-sharing payments and a $5,000 ratification bonus. The 25% raises include an 11% increase upon ratification, followed by a 3% bump-up in the next three years and then a 5% increase in September 2027.
At GM, the union also made major gains in cutting down different tiers, or levels, of workers to be paid the same or similar to their traditional colleagues at assembly plants. UAW President Shawn Fain said some workers will receive an immediate raise of 89% if ratified by members.
Union's Plans and Leverage
The union's plans to use the record contracts with GM, Ford and Stellantis as leverage to unionize other automakers were reiterated by Fain on Saturday. Toyota Motor earlier this week announced plans to hike wages at its U.S. factories. The new rates would see hourly manufacturing employees at top rates in Kentucky receive roughly 9% pay increases to $34.80 an hour – still below the more than $40 an hour top rate under the UAW’s tentative agreements with the Detroit automakers.
Voting and Next Steps
UAW members at Ford have already started voting on that tentative agreement. Most notably, 82% of workers at Ford’s Michigan Assembly Plant voted in support of the pact this week. The suburban Detroit plant was among the first to strike alongside other assembly plants with GM and Stellantis. UAW members with Stellantis and GM are expected to vote on the deals over the next couple of weeks.
GM declined to comment on the released details, referring back to a statement by CEO Mary Barra when the tentative deal was initially announced: “GM is pleased to have reached a tentative agreement with the UAW that reflects the contributions of the team while enabling us to continue to invest in our future and provide good jobs in the U.S.,” she said. “We are looking forward to having everyone back to work across all of our operations, delivering great products for our customers, and winning as one team.”
