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GM Plans $1.4 Billion Upgrade for Texas SUV Plant

General Motors Co. will invest some $1.4 billion to update its factory in Arlington, Tex., that makes fullsize SUV/crossover vehicles.

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General Motors Co. will invest some $1.4 billion to update its factory in Arlington, Tex., that makes fullsize SUV/crossover vehicles.

The three-year program will reconfigure the plant with new paint and body shops and improve the general assembly areas. Construction is scheduled to begin this summer and won't affect production, according to the company.

The Arlington plant has been operating virtually around the clock for about two years to make Cadillac Escalade, GMC Yukon and Chevrolet Suburban and Tahoe vehicles. Profits on those models can run to $10,000 or more per unit, according to analysts.

Demand for the SUVs and crossovers made at the Arlington facility rose 2% to 113,300 units in the first half of 2015, led by a 56% jump in Escalade sales, according to Autodata Corp.

Gardner Business Media - Strategic Business Solutions