The investment is for the next generation Corvette, which will be the seventh for the 58 year old American sports car.
The current-generation Corvette, introduced in 2004, will be built at the GM plant in Bowling Green, Kentucky for at least the next two model years, GM said in a statement.
GM North American President Mark Reuss said the company has invested $3.4 billion in the United States since mid-2009. It has also created 9,000 jobs in the meantime, he said.
GM sold 4,293 Corvettes in the United States this year through April, up 22 percent from 2010's first four months.
Sales of the Corvette were over 40,500 in 2007, but have slipped since, and plunged during the 2008-2009 recession and into 2010. Last year, only 12,624 were sold in the United States, by far the biggest market for the muscle car.
There are six variations of the 2011 Corvette, with a price range of $49,000 for the basic model Coupe, to $111,000 for the top-line ZR1.
The Corvette plant employs nearly 400 production workers on one 10-hour, four-day shift.
In a statement issued by GM, Joe Ashton, United Auto Workers vice president for GM relations, reaffirmed the UAW's goal of rebuilding the "great American middle class" that starts, he said, by making quality cars.
The UAW and major US automakers face negotiations on a new contract this summer. The UAW has signaled that it wants to share in gains of the automakers which are in a much better financial position than in 2007 when the last contract was signed.
The Bowling Green plant has made the Corvette since 1981. Prior to building Chevrolet Corvettes, the plant made air conditioners for Chrysler vehicles.