General Motors has confirmed plans to spend US$483m and create 483 jobs for its current and next-generation Ecotec four-cylinder engines at its Tennessee plant of Spring Hill.
The deal is however, subject to “successful incentive negotiations with local and state officials,” according to GM North America president Mark Reuss.
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The additional work would bring to almost US$2.9bn the amount of new US investment and 7,417 jobs that GM has created or retained in 20 US plants since emerging from bankruptcy in July 2009.
Employees to fill these positions will be recalled from lay-off in accordance with the United Auto Workers-GM National Labour agreement.
“The engines made in Spring Hill will drive the success of GM to meet our customer demands for advanced powertrains which offer high fuel economy without sacrificing performance,” said Reuss.
“This new commitment to the Spring Hill team will help GM almost triple its North American production volume of four-cylinder engines with direct injection by 2012.”
The spending announced today includes $23m that would add 30 hourly jobs to increase production beginning in the first quarter of 2011 of the current-generation Ecotec engine used in products such as the Chevrolet Equinox, Buick LaCrosse and GMC Terrain.
“We applaud GM’s decision to invest in the Spring Hill workforce represented by UAW Local 1853,” said UAW vice president GM department Joe Ashton. “Our members have proven time and again that they are capable of building high-quality, world-class products that are competitive with anyone in the industry.
“We want to be a positive force for putting America back to work. These jobs are important not only to the Spring Hill area, but throughout the region as well. Our union will work hard to ensure that there will be more good news for GM that in turn will be good news for the UAW.”
Currently, the Spring Hill Powertrain Plant produces three variants of the Ecotec engine. The Ecotec 2.4L with direct injection (DI) is in the Equinox, Terrain, LaCrosse, Buick Regal, Chevrolet Captiva (Mexico) and Daewoo Alpheon (Korea).
The Ecotec 2.0L DI Turbo is used in models of the Opel Insignia (Europe), Buick LaCrosse (China), and Regal. The Ecotec 2.4L Multiport Fuel Injection engines are shipped to Korea for the Captiva and Antara.
The bulk of the investment – US$460m and 453 hourly and salaried jobs – is planned for the next-generation Ecotec engines.
Reuss said the investment had no bearing on the Spring Hill Assembly Plant, which remains on stand-by status should more vehicle production capacity be needed.
The additional Spring Hill powertrain production follows announcements in February of US$494m for additional capacity at GM plants in Tonawanda, New York, Defiance, Ohio and Bay City, Michigan. Those projects are expected to result in the creation of around 550 jobs.
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