General Motors to Invest $76M To Boost Pickup Truck Manufacturing

GM plans to invest the money in two of its plants in New York and Ohio.
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Automaker General Motors  (GM) - Get Report on Monday said it plans to invest $76 million in two of its manufacturing plants in New York and Ohio to increase the manufacturing capacity of its pickup trucks.

The Warren, Mich., company will invest roughly $70 million into its Tonawanda, New York engine plant and more than $6 million into its Parma, Ohio metal stamping plant.

The Tonawanda plant investment will be used to increase manufacturing capacity for engines used in GM's Chevrolet Silverado and GMC Sierra HD pickups, among others.

"GM continues to invest to strengthen our core business and respond to growing customer demand for our full-size pickups," said Phil Kienle, vice president of North America Manufacturing and Labor Relations, in a statement.

The Parma plant investment will be used to boost production volume for trucks with the construction of four new metal assembly cells, the Detroit carmaker said.

GM's Tonawanda engine plant employs 1,300 people, while its Parma plant has 1,000 workers, the company said.

Separately last month, GM scrapped its equity stake in Nikola  (NKLA) - Get Report and instead struck a new fuel cell deal with the company.

GM now says that it will supply its hydrotec fuel cell system for Nikola's Class 7 and 8 semi-trucks, the company said. 

GM and Nikola previously signed a deal on Sept. 8 that had GM taking an 11% stake in Nikola -- worth around $2 billion -- in a joint venture that would have seen GM building the Nikola Badger, a fully-electric and hydrogen fuel cell electric pickup truck.

Shares of GM were down 0.73% to $41.62 on Monday.

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