GM’s Customer Care and Aftersales (CCA) has planned to invest $65 million to construct a new warehouse facility near Flint, Michigan. This facility will serve as the new service parts hub for GM. The construction of the facility will begin in a month’s times and is expected to be completed by next year.
The 1.1-million square foot facility in Burton will replace the existing 400,000-square-foot facility which is in close proximity. The new facility, which is more than double the size of the existing facility, is expected to become fully operational by the first quarter of 2019. It is being estimated that the plant will generate approximately 700 employment opportunities.
GM decided to move out of its previous facility because it needed to expand its operations for future growth. This decision was also aided by the fact that the lease on the existing facility was about to expire.
NorthPoint Development, a Kansas based company is said to be building this facility. Once built, they will be leasing out this facility to GM for an initial term of 12.5 years.
“Burton was the best possible location for this new facility,” Lisa Veneziano, GM’s executive director of global aftersales supply chain, warehousing and logistics said in a statement. “We have long-standing ties to the community, the strong support of local and state leaders and it’s close to many of our key suppliers. We now have room to grow, and a great opportunity to serve our customers even better.”