GM to Make $47 Million Investment in Defiance

By Scott Sarvay
By Jeff Neumeyer

June 10, 2011 Updated Jun 10, 2011 at 6:02 PM EDT

DEFIANCE, Ohio (Indiana’s NewsCenter) - A big General Motors foundry in Northwest Ohio is about to get bigger.

Jeff Neumeyer has more on an expansion of the company's Defiance Powertrain facility.

Jeff Neumeyer: " As we all know, the auto industry has been on shaky ground the last three years or so.

That's why an announcement Friday that GM is making a $47-million investment at the Defiance facility is a source of pride and relief.

GM officials told some of the plant's nearly 1,300 workers mid-morning that new tooling and equipment will be purchased to increase the volume of engine blocks, cylinder heads, and crankshafts cast at the foundry.

The move is not expected to create new jobs, but we're told it will protect more than 200 existing positions.

Arvin Jones/GM Manufacturing Manager: " The money we're investing is adding on capacity to the current processes, so the plant will in fact have more capability. So, it is one of job retention."

Dwight Chatham/Union Local 211 President: " I thank everybody involved, especially Arvin and Gene Tuohy, that believed in us down here, that we could get the work done here in Defiance Ohio, and not in Mexico or China."

Mayor Bob Armstrong/(D) Defiance: " Now to see all the progress that General Motors has made, it brings a new breath of life to our community."

Neumeyer: " Despite GM's troubles and bankruptcy filing in 2009, the auto giant claims to have made nearly $350-million in investments in Defiance since 2007.

The new products turned out in the latest upgrade are designed to improve vehicle fuel mileage, and help GM customers deal with rising fuel prices.

The Defiance announcement is part of the $2-billion in U.S. investments that GM is making at 17 facilities in eight states.

Company officials refused to comment on whether the Fort Wayne Truck Assembly Plant would benefit from the expansion euphoria.

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