General Motors (GM) has planned to spend $5.4 billion and create about 650 jobs to improve its US factories during the next three years.

The company announced about its $783.5 million of the investments and said the remaining will be announced in the coming months.

The investments come when Detroit automakers are prepared for contract talks with the United Auto Workers union that will start this summer.

GM like other automakers wants to build or expand factories in lower-cost Mexico. It want to move more production south of the border and of keep the union happy with additional investments in the US.

Company's Delta Township plant near Lansing, Mich., which makes GM's large crossover SUVs such as the Buick Enclave, Chevrolet Traverse and GMC Acadia, will receive $520 million on equipment for future models.

The company's pre-production center in Warren, Mich., near Detroit and metal stamping plant in Pontiac, Mich. will get $139.5 million and $124 million respectively. The center in Warren will get money for a new body shop and metal stamping equipment.

The plant is running full-bore to meet demand for vehicles such as the Chevrolet Tahoe. Its sales have rose 33% so far this year. Low gasoline prices have added to a shift in the US market from cars to SUVs.

Spokesman Bill Grotz said that the money for GM's pre-production facility at its Warren technical center will help the company build higher-quality vehicles. The facility will do more to spot problems early and fix them.

Cathy Clegg, vice president of manufacturing, "The common thread among our investments is the focus on product improvements that benefit customers".

Gm also said that it has spent $16.8 billion on its US facilities since emerging from bankruptcy in June 2009. It has created more than 3,650 jobs and preserved 20,700 others.