By Jeff Bennett
KANSAS CITY, Kan.-- General Motors Co intends to invest $174
million in its Fairfax assembly plant here as it uses its strong
balance sheet to increase productivity at its U.S. factories and
bolster its vehicle portfolio.
Chief Executive Mary Barra--expected to speak here Monday to
celebrate the company's milestone of producing 500 million vehicles
globally--is plowing $5.4 billion into U.S. factories over the next
three years as she looks to deliver on the company's goal to boost
its North American operating margin to 10% from 8.8% of
revenue.
One way to meet that goal is by creating more consumer buzz
around the company's sedan lineup. In 2013, the company completely
redesigned the Chevrolet Impala. Now the 2016 Chevrolet Malibu will
have a sleeker look and shed 300 pounds compared with its
predecessor. Designers stretched the back seat giving passengers an
additional 1.3 more inches. It will also be tricked out with the
latest technologies such as 4G Wi-Fi and a lane departure warning
system. The 2016 arrives in showrooms in the fourth quarter. Full
pricing has yet to be announced but the 2015 model starts at
$22,500.
The auto maker is also planning to roll out a new sedan in the
Cadillac brand known as the CT6 which GM claims to be the lightest
compared with its rivals due to the high use of aluminum in its
construction. The vehicle is set to challenge the likes of Daimler
AG's Mercedes-Benz brand. The car is slated to go on sales in
either later December or early January. Pricing hasn't yet been
announced. An update to the Buick LaCrosse is also slated for the
2017 model year. The LaCrosse is built alongside the Malibu at the
Fairfax plant.
Some of the $174 million investment will be used to install a
"Shake and Rattle" booth which simulates any road condition
customers might experience. It also identifies any sources of noise
in the interior so it can be fixed. The booth could be one
technology GM rolls out to more assembly plants.
The Fairfax plant employs 3,230 hourly workers and 270 salaried
and has produced more than 12 million vehicles since production
first began in 1945. The plant operates on three shifts and
produces one vehicle every 58 seconds.
Separately, as part of the 500th million vehicle milestone
celebration, Ms. Barra is expected to announce all U.S. salaried
and represented employees and retirees can share a one-time
customer appreciation discount in the third week of May. The
discount can be combined with other incentives. The amount of the
discount wasn't immediately disclosed.
"During 2015, we expect to sell more than 1,000 new vehicles per
hour, 24 hours per day," Ms. Barra said in statement. "This adds up
to nearly 10 million vehicles, the most in our history. I look at
this extraordinary volume as 10 million opportunities to prove what
kind of company we are and to say thank you."
Write to Jeff Bennett at jeff.bennett@wsj.com
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