General Motors is to plough US$788.7m into a new engine programme, as well as projects to modernise vehicle operations at its Spring Hill manufacturing plant, creating 792 jobs and retaining 16 posts.
At the same time, GM is announcing a US$118m cash injection at its Bay City Powertrain facility, adding 29 positions and retaining 67.
Since 2010, GM has announced initiatives of more than US$2bn for the Spring Hill operations. This includes $148m announced in February to re-purpose flexible machining and assembly equipment to build V8 engines.
“This investment will help GM and our workforce continue to put the customer at the centre of everything we do, providing them with powertrain solutions to meet their changing needs,” said GM North America manufacturing manager, Arvin Jones.
“Today’s announcement reinforces our faith in this facility and our strong commitment to this community and the state of Tennessee.”
According to Cindy Estrada, vice president and director of the UAW General Motors Department, this investment helps secure a positive future for its workforce.
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“UAW members at Spring Hill and Bay City have well-earned reputations for quality work and craftsmanship,” said Estrada. “Since the 2015 collective bargaining agreement, GM has invested more than US$1.7bn and UAW-GM members, their families and their communities will all benefit for years to come.”
Construction will start in May and last several years.
The Tennessee Valley Authority worked with government and company representatives in helping secure this investment announcement.
Spring Hill Manufacturing opened in 1990 and produced Saturn vehicles until March 2007. It produced the Chevrolet Traverse from September 2008 until November 2009, and the Chevrolet Equinox from September 2012 until October 2015.
Currently, the site operations consist of a vehicle assembly plant producing the Cadillac XT5 and the GMC Acadia, an engine plant making 4-cylinder engines, a stamping plant, a body shop, a paint shop and two polymer injection moulding operations.
Engines and stampings are supplied to various GM assembly plants globally. The complex will begin building small block V8 engines by the end of 2016.
Bay City Powertrain produces engine components, which are used in Chevrolet, Buick, GMC and Cadillac vehicles. The plant opened in 1892 as National Cycle Manufacturing Company and produced a new bicycle to replace old high-wheeled types.
In 1916, William Durant and Louis Chevrolet bought the plant and it was added to the General Motors portfolio in 1918.
With this announcement GM has ploughed or will inject US$249.4m in Bay City Powertrain since 2010.