According to reports, Detroit automaker General Motors would be halting expansion plans at the Warren Technical Center and Pontiac propulsion headquarters. The move was a part of cost-cutting measures undertaken by the company.
Only in 2017 did GM announce that it was in the final stages of a $1 billion investment in the Warren Technical Centre. The aim of this multi-year investment was to make necessary improvements and modernise GM’s existing campus to attract the right technical talent.
In its final leg, the investment in the Technical Centre included the expansion of its much acclaimed design studio that was announced in 2017.
However, the recently announced $28 million project at the battery lab at the Warren Technical Center will still have the green signal.
At Pontiac, GM’s plans to renovate its ageing building and workspaces will be postponed for now, and the employees were informed of this decision just last week.
When asked about the introduction of these cost-cutting measures, GM said these are “proactive steps” to safeguard the company as an industry downturn is looming large. Moreover, the carmaker is also exploring new avenues in the fields of electrification, autonomy and mobility of Auto 2.0.
The company aims at optimising costs and saving $6.5 billion in cost efficiencies through 2018, of which it has already achieved close to $6.3 billion by the third quarter.
GM CFO Dhivya Suryadevara said that the carmaker is on track to hit its efficiency goals by the end of this year.