A tentative new labour agreement with the United Auto Workers (UAW) union will see General Motors (GM) invest $13 billion U.S. in its American manufacturing facilities by April 2028.
The automaker has already announced some of the planned investments stemming from the new labour pact, including spending $4 billion U.S. at its existing Orion Assembly Plant outside Detroit and $2 billion U.S. in Spring Hill, Tennessee where it builds electric vehicles.
Many of the new investments include hundreds of millions of dollars for assembly plants to support or add additional volume, as well as engines and component parts, said General Motors in a news release.
Details of the investments were released after UAW leaders approved the new collective agreement, which must now be ratified by a majority of the union’s 46,000 members who work for GM.
The new deal between GM and the UAW was announced on Oct. 30 after six weeks of targeted strikes by the union.
The agreement includes 25% pay increases, bonuses, and other enhanced benefits for autoworkers, such as profit-sharing and a $5,000 U.S. ratification bonus.
UAW members at GM are expected to vote on the new contract over the next few weeks.
General Motors’ stock has declined 24% over the last 12 months and currently trades at $29.77 U.S. per share.
