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GM to spend $20 million more on equipment upgrade at Arlington plant

GM to spend $20 million more on equipment upgrade at Arlington plant
FILE PHOTO: A general view of the front entrance at the General Motors Assembly Plant in Arlington, Texas June 9, 2015. REUTERS/Mike Stone -
Mike Stone(Reuters)
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(Reuters) – General Motors Co said on Tuesday it would invest an additional $20 million (16 million pounds) to upgrade equipment at the automaker’s Arlington Assembly plant in Texas, ahead of the launch of full-size sports utility vehicles (SUVs).

The investment will not add to the plant’s production capacity, a GM spokesman said.

The No.1 U.S. automaker has not revealed when the company is going to launch its next generation full-size SUVs such as the Chevrolet Tahoe, Chevrolet Suburban, GMC Yukon, GMC Yukon XL and the Cadillac Escalade.

GM has long been dominated the U.S. full-size SUV segment, which fetches higher margins, but rival Ford Motor Co has been pushing to capture market share. Fiat Chrysler Automobiles NV said earlier this year it would start building a full-size Jeep SUV in late 2020.

The latest equipment upgrade at Arlington plant is expected to be ready next year, the company said.

GM has invested more than $1.4 billion in the Arlington Assembly plant since 2015.

(Reporting by Rachit Vats in Bengaluru and Nick Carey in Detroit; Editing by James Emmanuel)

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