GM to invest $2 billion in 17 plants

General Motors said Tuesday that it will invest about $2 billion in 17 plants across eight states in the United States.

"We are doing this because we are confident about demand for our vehicles and the economy," GM CEO Dan Akerson said in a statement.

Akerson made the announcement at GM's transmission plant in Toledo, along with Ohio Gov. John Kasich.

GM said it will invest $204 million in that plant for production of a new eight-speed automatic transmission. The company didn't say what future vehicles would get the new transmission.

GM said it would separately announce the other plant investments "over the next few months" as it works to finalize some state and local incentive packages. It didn't say which plants are in line to receive money.

The first investment--$131 million for GM's Corvette plant in Bowling Green, Ky.--was announced last week.

The company said the investments will create or preserve 4,000 jobs. It didn't say how many of those would be new positions.

GM already has invested $3.4 billion and has "added or saved" more than 9,000 jobs since emerging from it government-backed bankruptcy in 2009, the company said.

"The UAW's goal has been to return all laid-off workers to active status and see the company begin hiring again," Joe Ashton, vice president of the UAW's GM department, said in a statement. The planned investments will "bring General Motors back to full employment of our hourly work force."

GM does not build noncommercial vehicles with eight-speed transmissions, but the automaker unveiled a prototype for the eight-speed electric hybrid Buick Enclave last month at the Shanghai auto show.

The Toledo plant produces the Hydramatic 6L80 rear-wheel-drive six-speed transmission used in the Chevrolet Corvette and the Cadillac Escalade, and the global front-wheel-drive six-speed gearbox used in the Chevrolet Cruze and Malibu.

By Mike Colias- Automotive News