General Motors is spending $328 million to update a factory in Flint, Mich., where it will build the next generation of full-size Chevrolet Silverado and GMC Sierra pickups.
The investment is part of $2 billion GM is spending to create or retain 4,000 jobs in eight states over the next 18 months.
A local GM spokeswoman said Monday that Flint’s green light doesn’t mean the Allen County assembly plant is out of the running for a similar investment.
“They’re doing some more analyzing on all the different options,” spokeswoman Stephanie Jentgen said of GM officials. She’s unsure when to expect an announcement about the local factory’s future.
Cathy Clegg, vice president for labor relations, said in Flint that the company has more investments to announce. She declined to comment about the Fort Wayne assembly plant.
Defense deal worth $11 million locally
All Rite Distributing Co. has won a five-year contract to supply machine-gun mounts to the U.S. Navy. The order is worth more than $11 million, the company said Monday.
The company, founded in 1972, registered to become a defense contractor more than 10 years ago after beginning as a wholesale distributor warehouse for aftermarket auto parts.
All Rite completed about $6 million in defense contracts last year. The company, 1430 Dividend Road, employs nine.
The late John McNaughton, who founded the company, was a World War II veteran.
Cisco will idle 6,500 workers
Networking equipment maker Cisco Systems Inc. is cutting 6,500 employees – about 9 percent of its workforce – as it follows up on a plan announced in May to eliminate thousands of jobs to reduce costs and raise profits.
Cisco, which has about 73,400 employees worldwide, said Monday it will lay off 4,400 people. An additional 2,100 employees chose to leave as part of an early-retirement program. The company said the cuts include the elimination of 15 percent of its employees at and above the level of vice president.
Cisco said the cuts will cost it $1.3 billion in severance and termination benefits. The company plans to take the charge over several quarters. It will take $750 million of that, including $500 million for the early-retirement program, during the current quarter.
Cisco will inform employees who have been cut in the U.S., Canada and some other countries during the first week of August.
Builders’ outlook up after hitting 2011 low
The outlook among U.S. homebuilders became a bit rosier in June, but the future prospects for home construction are anything but promising.
An index of builders’ outlook for their industry in June rose two points to 15, the National Association of Home Builders said Monday. Any reading below 50 indicates negative sentiment about the housing market. The index hasn’t reached 50 since April 2006, the peak of the housing boom.
In May, builder sentiment hit its lowest level in nine months. It’s still just seven points above the lowest reading on record, in January 2009.
Cash-strapped builders are struggling to compete with deeply discounted foreclosures and short sales.
