GM invests $36M at Mich. plant for Traverse, Enclave mid-cycle refresh

LANSING, Mich. — General Motors will invest $36 million at its Lansing Delta Township plant in Michigan for the mid-cycle refreshes of the Chevrolet Traverse and Buick Enclave.

The company, citing competitive factors, declined to provide specific details of the investment, which was announced Monday by GM CEO Mary Barra at the mid-Michigan factory.

No jobs are expected to be created as a result of the investment, GM said. Along with a nearby stamping plant, the site employs roughly 2,900 people, including more than 2,600 hourly UAW members.

The investment, according to Barra, will begin over the “next several months.”

The Lansing Grand River factory is the fourth U.S. plant Barra has visited in recent weeks in the wake of heavy political backlash over the company’s plans to potentially end output at four U.S. plants and shutter Oshawa Assembly in Oshawa, Ontario, in 2019.

GM is moving to end output at the plants in response to a steady decline in U.S. car sales as Americans increasingly embrace SUVs, crossovers and pickups. 

Barra on Monday reiterated the company’s reasonings for the moves, including “rapid change” in the industry due to autonomous and electric vehicles and shifting customer preference to utility vehicles.

Barra also has recently visited Spring Hill Assembly in Tennessee and Arlington Assembly in Texas, where she was joined by General Motors CFO Dhivya Suryadevara and Alicia Boler Davis, the company’s head of global manufacturing. Barra has also visited GM's pickup plant in Fort Wayne, Ind.

Third shift?

Lansing Delta Township’s vehicle assembly lines currently operate on two shifts, while the stamping operations run on three shifts. 

Adding a third shift, according to Barra, isn’t out of the question. She said it will be based on demand: “If we see the ability to add another shift that’s sustainable, that’s something we would definitely consider,” she said. “We’d love to be able to do that.”

UAW Local President 602 called the investment “great news” for the facility and its employees, while Marcos Purty, GM executive director of the plant, said the plant will play “a vital role where GM is headed.” 

The $36 million investment comes four years after GM spent $520 million for tooling and equipment for the redesigned Traverse and Enclave, which went into production in 2017.

Since 2009, GM has invested more than $600 million in the Lansing Delta Township plant.

Rivian investment

Barra declined to comment on any potential talks between GM and electric vehicle startup Rivian. It was reported last week that the automaker was in talks to invest in the Michigan-based startup.

“I have nothing to say further than what we’ve already said,” she said. “We are impressed with Rivian’s commitment to an all-electric future.”

Rivian last week announced Amazon Inc. would lead a $700 million investment round into the company.

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