GM will spend over $1 billion to make new heavy-duty pickup truck

In order to produce the next generation of heavy-duty trucks, General Motors plans to invest more than $1 billion in two Michigan operations, the company announced on Monday.

Included in the investment is $788 million for the Flint Assembly plant’s preparation to produce the heavy-duty gas and diesel vehicles. The automaker’s Flint Metal Center will receive an additional $233 million to support the production of the vehicles. The two plants are situated in central Michigan.

The news of the investment comes before this summer’s contract talks between the Detroit manufacturers, including GM, and the United Auto Workers union.

Every four years, UAW negotiations present a short-term challenge for investors in the form of rising costs. However, due to a long-standing organized labor movement across the nation, a pro-union president, and an industry transitioning to all-electric vehicles, this year’s discussions are predicted to be among the most crucial and acrimonious in recent memory.