Flint, Mich., was as badly hurt by the downturn in the auto industry as any other city. Unemployment has remained high, along with poverty and crime. Its population reached 196,000 in 1960, based on Census data, and stayed at that level in 1970. By 2014, it had fallen to just below 100,000. The city twice has been run by a state-appointed emergency manager because its financial situation became so dire.
Source: Thinkstock
General Motors Co. (NYSE: GM) is investing in a new plant in Flint, but it will not add any jobs, at least based on the company’s announcement. While the upgrade may be good for GM as its modernizes its lineup, the decision does little or nothing for Flint.
In the announcement about a new facility in Flint, GM management said:
General Motors’ oldest assembly plant in North America, a popular destination for pickup truck customers who want to watch their vehicles being built, will undergo transformation in the coming years.
GM officials today announced plans to invest $877 million to build a new body shop for the assembly plant, locating it closer to the Flint Metal Center, which supplies sheet metal and other parts used in the Chevrolet and GMC full-size pickups produced in the assembly plant.
The investment will also cover improvements to the general assembly area inside Flint Assembly, as well as retooling and the installation of new equipment at the plant.
Also:
Since 2011, GM has announced investments topping $1.8 billion for Flint Assembly. This includes $600 million for plant upgrades and a new standalone paint shop that is under construction and slated to open in 2016. Work on the 883,000-square-foot body shop is expected to begin in the first half of 2016, with completion slated for 2018.
GM management also said that its initiatives across the United States have been helped by UAW cooperation and “have created approximately 6,250 new jobs and secured 20,700 other positions.”
But not in Flint.
ALSO READ: How Obamacare Increased Insurance Coverage in Every State
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
