GM to Invest in Michigan Plants

General Motors Corp. plans to announce today that it’s investing $500 million in five Michigan factories, a person familiar with the plan said Monday.

GM, the world’s largest automaker, will make the investments in a Cadillac assembly plant in Lansing, an engine factory in Romulus, a transmission factory in Willow Run and a stamping operation and truck assembly plant in Pontiac, the person said. Cadillac’s U.S. sales have increased for four consecutive years while GM’s overall sales have declined.

“We’ve got a number of government officials coming,” said Kathryn McBride, a spokeswoman for Detroit-based GM. “The news will be positive, and it affects five of our plants here in Michigan.”

Michigan’s economy, which relies on the auto industry, has been hurt by problems at GM and Ford Motor Co. In November, GM said it would close a vehicle assembly plant in Lansing as part of a plan to eliminate 30,000 jobs by 2008.

In January, Ford said it would close an assembly plant in Wixom as the company cuts as many as 30,000 factory jobs in the next six years.

One-third of Ford’s reductions, along with three-quarters of the 4,000 white-collar jobs Ford plans to cut by March, will occur in Michigan, according to Sean McAlinden, an analyst with the Center for Automotive Research in Ann Arbor.

General Motors’ sales of cars and light trucks fell 4.3% in 2005, and its share of the American market slid to 26.2% from 27.5% in 2004.