GM Defiance Targeted for $47 Million Investment

Supports production of components for fuel-efficient engines

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Jun 10, 2011, 12:23 ET

DEFIANCE, Ohio, June 10, 2011 /PRNewswire/ -- General Motors intends to invest $47 million in its Defiance powertrain plant to purchase tooling and equipment to increase volume of components for the fuel-efficient Ecotec 1.4L engine and the next generation of small block car and truck engines.

"This investment reflects the growing demand for fuel-efficient vehicles, such as the Chevrolet Cruze, Volt and the all-new Sonic," GM Manufacturing Manager Arvin Jones said Friday. "The products produced here will help our customers deal with rising fuel prices."

The Defiance announcement is part of the $2 billion in U.S. investment that GM announced May 10 for 17 facilities in eight states. Facilities in Bowling Green, Ky.; Arlington, Tex.; Toledo, Ohio; Bedford, Ind.; and Bay City, Detroit, Flint, Lansing and Warren, Mich., also received investments that will positively impact employment. This builds on the $3.4 billion invested and 9,000 jobs GM has created or retained in the United States since mid-2009.

The plant, which opened in 1948, produces 5.8 million parts annually. It last was upgraded in 2010 to enable the facility to produce parts for the 1.4L engine.

"We appreciate the tremendous support we have received from the Defiance community over the years," said Jones. "This investment is possible because of the teamwork between GM, the UAW, the Defiance community and the great State of Ohio."

Defiance currently has 1,277 hourly and salaried employees.

"The members of UAW Local 211 have played an active role in building a strong partnership with management at the Defiance plant," said Joe Ashton, UAW vice president-GM Department.

"It is in places like Defiance that GM should be investing so that the American dream of living a middle-class lifestyle can be fulfilled."

About General Motors

General Motors (NYSE: GM, TSX: GMM), one of the world's largest automakers, traces its roots back to 1908. With its global headquarters in Detroit, GM employs 202,000 people in every major region of the world and does business in more than 120 countries. GM and its strategic partners produce cars and trucks in 30 countries, and sell and service these vehicles through the following brands: Baojun, Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Isuzu, Jiefang, Opel, Vauxhall, and Wuling. GM's largest national market is China, followed by the United States, Brazil, the United Kingdom, Germany, Canada, and Italy. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on the new General Motors can be found at www.gm.com.