GM to spend $1.4B to upgrade Texas production plant to meet SUV demand

MarketsAssociated Press

General Motors says it will spend $1.4 billion to expand and improve its SUV factory in Arlington, Texas to meet strong demand for its vehicles.

The company said the plans, announced Tuesday, represent its largest plant investment in the U.S. this year.

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General Motors will add a new paint shop, body shop and general assembly area upgrades to the 60-year-old assembly plant.

Demand for GM's full-size SUVs has been so strong that the plant can't make them fast enough. The factory has about 3,800 hourly workers on three shifts making the Chevrolet Tahoe and Suburban, GMC Yukon and the Cadillac Escalade. The plant has basically been running flat-out for the past two years, and additional hiring is expected.