GM to invest $2 billion in U.S. plants: reports
DETROIT (Reuters) - General Motors Co <GM.N> plans to invest $2 billion at plants in eight states, including at a plant in Toledo, Ohio, that makes transmissions for small cars, the Detroit News reported, citing sources.
GM CEO Dan Akerson will announce the investment at the Toledo plant on Tuesday, where the company will add about 250 jobs as part of a $250 million upgrade, the paper said.
GM sent out a press release on Monday announcing an event with Akerson at the plant slated for Tuesday, but a company spokeswoman declined to comment on the newspaper report.
The Associated Press had earlier reported that GM would invest $260 million and add 400 new jobs at the Toledo plant.
That report cited Ray Wood, president of UAW Local 14 which represents workers at the plant, as saying the plant will obtain equipment to make a new eight-speed automatic transmission toward the end of 2012.
Representatives of UAW Local 14 could not be reached for comment.
The AP report said the new workers at the plant -- which makes transmissions for a number of vehicles including GM's No. 2 selling Chevrolet Cruze -- will start at the entry-level wage paid by the automaker of $14 an hour. The plant also makes transmissions for trucks, which have not sold so well as high gas prices have pushed American consumers to more fuel-efficient models.
That lower wage, introduced as part of concessions in labor talks with the automakers, has angered many rank and file members of the United Auto Workers union. The top tier of UAW workers make about $26 per hour, enough to grant middle class status.
(Reporting by Nick Carey and Deepa Seetharaman; Editing by Phil Berlowitz)