General Motors has a rather enviable problem on its hands: how to expand domestic SUV production. In response to this dilemma, Reuters reports that the automaker is contemplating investing $1.3 billion in its assembly plant in Arlington, Texas.
The proposed expansion encompasses 1.2 million square-feet of added space, at a cost of around $307 million. The remaining $986 million will be allocated toward new tooling and equipment. If the expansion goes through, the GM Arlington Assembly Plant could swell its workforce by as many as 589 persons, to a total 3,179.
General Motors is already among the top ten largest employers in the city.
To sweeten the deal, the Arlington city council is attempting to green-light incentives for GM, such as waiving any building permit and development fees, and offering an 80-percent reduction to the plant’s taxes for a full 10 years after completion of the expansion. The city council could vote on those incentives as soon as April 28th.
General Motors Spokeswoman Jennie Ecclestone (no relation to our own Chris Ecclestone – we think) stated simply that “GM is developing a business case for a potential future investment at Arlington Assembly. An investment would fund facility improvements aimed at strengthening the plant’s manufacturing capability.”