Dan Akerson, General Motors Chairman and CEO, announced today the company’s plans to invest $600 million in its Kansas City assembly plant, the Fairfax Assembly Center. The production center for the Chevrolet Malibu and Buick Lacrosse, the plant has been in operation for 68 years and has produced more than 12 million vehicles.
“Today, we are announcing investments in Fairfax totaling $600 million! That $600 million represents one of the largest plant investments in the history of General Motors...And it brings our total investment in Fairfax to more than $2.5 billion over the last decade. This is a vote of confidence in you,” said Akerson at the official announcement.
Construction is expected to be completed by the end of 2015. The investment will increase the plant’s footprint more than 15 percent to 3.7 million square feet, add a 450,000 square foot state-of-the-art paint shop, reduce energy usage by 50 percent per vehicle, and other upgrades.
General Motors is making this investment in an effort to become more competitive. Along this effort, the company has stated that 70 percent of its vehicles that it sells in the US will be redesigned or new by end of 2013.
The company, still recovering from the economic recession, has posted 11 profitable consecutive quarters and has invested more than $7.3 billion in the US since 2009, creating and retaining more than 21,600 jobs.
Akerson also stated at the investment announcement his confidence in GM’s competitive advantage specifically because the Chevrolet Malibu was ranked as best midsize car in the 2012 J.D. Power Initial Quality Study and that the Malibu has the lowest warranty expense per vehicle ever seen at GM.
“You helped make this happen -- all of you together! And it benefits the entire GM family. Great quality flows straight to the bottom line and frees up cash we can invest in more new products... better equipment... profit sharing and much more,” said Akerson.