Arlington approves investment zone for $1.3B General Motors expansion

By April 30, 2015Uncategorized

As predicted by Mayor Robert Cluck, the Arlington City Council approved incentives for General Motors Co. to expand its SUV factory in the city. The Council unanimously approved on Tuesday an investment zone, paving the way for a $1.3 billion investment by GM toaccelerate production of some of the automaker’s most profitable vehicles, analysts say. The 61-year-old plant makes GMC Yukons, Cadillac Escalades and Chevrolet Suburbans. Boosted by lower gas prices, sales of GM’s full-size SUVs are up more than 50 percentin the first quarter of this year compared with the same period in 2014.

General Motors (NYSE: GM) has not publicly shared specifics of its plan for improvements at the Arlington plant, other than to say it would provide about 600 jobs and involve about $1 billion in equipment and $300 million in construction that would add 1.2 million square feet to the factory floor. “GM is developing a business case for a potential future investment at Arlington Assembly,” company officials said Wednesday in a prepared statement. “An investment would fund facility improvements aimed at strengthening the plant’s manufacturing capability.” Tax incentives from the city and the state are part of GM’s consideration process, a spokesperson for the company said.

Dallas Business Journal by Bill Hethcock

Leave a Reply