General Motors's (GM) new Arlington, Texas, stamping plant
is the 10th contiguous stamping plant added to GM's global
operations in the last five years. And, there's a reason for
that. Actually there are several. The realigned manufacturing
process is a tactical move predicted to improve profits through
savings on logistics, promise of higher quality, and risk
mitigation.
The addition of the new metal stamping plant, which will produce
large metal parts, such as doors, hoods, and side panels for the
next generation of the full-size SUVs, on the campus of the nearly
50-year-old Arlington assembly plant is expected to save GM $40
million a year in shipping costs. The assembly plant currently
receives stampings from GM locations, some more than 1,000 miles
away. GM expects the $250 million investment in the new facility to
be easily recouped in transportation cost savings, alone. But that
is only part of the plan.
