[UPDATED] GM’s Customer Care and Aftersales (CCA) division will open a new $65m service parts warehouse near Flint, Michigan, next year that will be more than double the size of its existing facility in the state. Construction begins this month on the facility and it is one of the biggest investments the company has made in parts processing and logistics facilities for 40 years.
The 102,000 sq.m (1.1m sq.ft) facility in Burton will replace GM’s spare parts processing facility in nearby Flint, which is 37,000 sq.m. Construction is expected to be complete at the beginning of 2019 and the facility will be operational by the first quarter. When the new facility opens GM will close the existing centre in Burton and employees will transfer to the new location. The parts facility will employ 700 people when fully operational.
GM said that the existing facility didn’t have room for future growth it had taken the opportunity of the lease expiring, to make the new investment.
“Burton was the best possible location for this new facility, which will be home to the CCA Davison Road salaried employees as well as team members represented by UAW Local 651 when it opens early next year,” said Lisa Veneziano, GM’s executive director, Global Aftersales Supply Chain, Warehousing and Logistics. “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.”
According to The Detroit News, the local city council has approved an industrial facilities exemption certificate that could give GM a 12-year tax abatement at the site, pending final approval from the State Tax Commission.
GM will lease the building from industrial property firm Northpoint Development, initially on a contract for 12.5 years.
