General Motors will put $20.5 million into three of its Customer Care and Aftersales parts distribution centers in the United States, including two in Michigan, to install various automation technology that will modernize warehouse operations as the automaker prepares to bring dozens of new electric vehicle to the market in the next two years.
The three sites to get the upgrades are GM’s Memphis Parts Distribution Center in Memphis, Tennessee; Ypsilanti Processing Center in Ypsilanti, and Davison Road Processing Center in Burton, Michigan, GM said in a statement Thursday.
“As we continue to invest in our workforce by modernizing our warehouse operations, implementing technology allows our organization to prepare for industry growth, especially as we expand for the electric vehicle future,” said John Roth, GM global vice president, Customer Care and Aftersales, in a statement.
Roth added that the new technology will help minimize ergonomic stressors on workers and reduce the physically demanding work, “which will help us prepare for increased demand as we support more vehicles on the road. It can also help increase order fulfillment speed and ensure our customers continue to receive the right part, at the right place, at the right time.”
Here is how the investment breaks down:
- Memphis Parts Distribution Center: GM will invest $14 million to implement an automated parts storage and retrieval system. Memphis is a distribution hub for Original Equipment ACDelco parts, EV chargers and supports GM’s newly launched eCommerce business. The Memphis Parts Distribution Center was opened in 1999 and ships approximately 331,700 orders per month. GM employs about 259 people there. The system is scheduled to begin installation by June and start running by October.
- Ypsilanti Processing Center: GM will put $3 million into the facility, which has about 164 employees, to implement robotic technology with powered conveyors to lift and put materials on pallets. GM will begin installation by October and be complete by December.
- Davison Road Processing Center: The $3.5 million investment there will be used to implement automatic boxing machines, which will create custom sized boxes to fit parts. Installation starts in March and will be operational by April. GM employs about 1,224 people at this facility.
Newly elected UAW Vice President for the GM Department Mike Booth applauded GM’s investment, saying in a statement it makes clear “that our members are part of the future growth of General Motors.”
“These investments will make the jobs of our members at Locals 2406 (Memphis, Tennessee), 174 (Ypsilanti, Michigan) and 651 (Burton, Michigan) safer and more secure,” Booth said.
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Contact Jamie L. LaReau: jlareau@freepress.com. Follow her on Twitter @jlareauan. Read more on General Motors and sign up for our autos newsletter. Become a subscriber.