Carmakers Step Up N. American Plant Spending

Automakers have announced plans this week for new North American factory investments totaling more than $400 million in a scramble to keep up with rising demand in the region.

In presentations at the Management Briefing Seminars in Traverse City, Mich., Chrysler, Honda and General Motors have unveiled expansion plans for engine and assembly facilities. Analysts say July's strong vehicle demand has bolstered confidence that this year's sales will be the highest since 2007.

General Motors Co. has nearly doubled its spending at its Spring Hill, Tenn., plant to $350 million to prepare for production of two midsize models. The former Saturn factory has been used to supplement production of models in high demand.

Honda Motor Co. intends to invest an additional $180 million at its engine plant in Anna, Ohio, to increase output of engine components. In nearby Marysville, Ohio, the company also will erect a $35 million office and technical training center for engineers, service technicians and factory workers. The facility is scheduled to open in autumn 2014.

Chrysler Group LLC plans to spend $52 million to boost capacity to produce Tigershark four-cylinder engines at factories in Dundee and Trenton, Mich. Chrysler says the investment, which will increase output by the end of September, will create about 300 jobs.