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GM to speculate $500 million in new Cadillac Escalade, different SUVs

An worker makes use of a flash grinder to clean out the steel body of a sports activities utility car (SUV) on the manufacturing line on the Common Motors Co. (GM) meeting plant in Arlington, Texas.

Matthew Busch | Bloomberg | Getty Photographs

DETROIT – General Motors plans to speculate greater than $500 million in a plant in Texas to arrange the power for manufacturing of its extremely worthwhile next-generation giant SUVs.

The Detroit automaker said Thursday the funding will embody new tooling and gear in Arlington Meeting’s stamping, physique store and common meeting areas for the gas- and diesel-powered Cadillac Escalade, Chevrolet Tahoe/Suburban and GMC Yukon/Yukon XL SUVs.

The funding is additional affirmation that the corporate plans to proceed to spend on its conventional operations to help in funding its rising electrical car enterprise.

GM on Monday made a similar announcement for its next-generation heavy-duty pickups, which share the body of the big SUVS. The truck funding included greater than $1 billion in two Michigan crops for manufacturing of next-generation heavy-duty vans.

The notably worthwhile autos stay in excessive demand, and gross sales are wanted to help in funding the automaker’s investments in EVs. The corporate has mentioned it plans to completely supply consumer EVs by 2035. The automaker lately confirmed an all-electric version of its Cadillac Escalade however declined to reveal when the car will come to market.

Gross sales of the full-size SUVs totaled greater than 279,000 autos final 12 months, representing about 12% of the automaker’s gross sales and a notable quantity of its income.

The funding bulletins come forward of contract negotiations between the Detroit automakers, together with GM, and the United Auto Staff union this summer time.

For traders, UAW negotiations are sometimes a short-term headwind each 4 years that lead to greater prices. However this 12 months’s negotiations are anticipated to be among the many most contentious and necessary in current reminiscence, fueled by a years-long organized labor motion throughout the nation, a pro-union president and an business in transition to all-electric autos.

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