General Motors upgrades 5 factories to meet car demand

General Motors will spend $890 million to upgrade five of its engine and component plants to keep up with demand for the company’s most popular vehicles, including its four core brands Chevrolet, Cadillac, Buick and GMC.

About $400 million will be spent to revamp GM’s powertrain factory in Tonawanda, New York, and $235 million will be spent on the company’s St. Catharines, Ontario plant. The rest will go to engine casting and component production at factories in Defiance, Ohio; Bedford, Indiana; and Bay City, Michigan, the New York Times reports.

The new investment comes less than week after the Detroit-based company repaid a $6.7 billion U.S. loan and announced a $257 million upgrade of its assembly plants in Kansas and Michigan for the next-generation Chevrolet Malibu sedan.

GM aims to build more fuel-efficient engines in response to consumer demand and future federal mileage requirements. Its North American assembly plants work on 24-hour schedules because of spikes in sales after it emerged from bankruptcy using government bailout money. GM’s sales were up 17% though March this year compared to 2009.