GM to Add About 800 Jobs at Tennessee Plant
April 27 2016 - 5:00PM
Dow Jones News
General Motors Co. plans to add about 800 manufacturing jobs at
in Tennessee as part of nearly $1 billion earmarked for powertrain
investments at a pair of factories.
A $789 million Tennessee investment, announced Wednesday,
represents the bulk of the spending and will pave the way for a new
engine to be built at a plant in Spring Hill that makes crossover
sport utilities. Since 2010, GM has announced more than $2 billion
in investments for the factory, which initially was expected to
close during the company's 2009 bankruptcy and the discontinuation
of Saturn.
Spring Hill had once been home to the Saturn brand. The factory
now turns out the Cadillac XT5, a vehicle at the center of GM's
effort to remake the luxury brand. The auto maker didn't specify
the size of the engine that will be built at the factory.
The plant represented GM's least utilized factory in 2015,
according to WardsAuto.com, which provides data on the auto
industry, amid a slew of product changeovers and expansion
efforts.
GM earlier this week temporarily idled Spring Hill and three
other assembly plants due to supply-chain problems related to the
recent earthquakes in Southern Japan. A GM spokesman said there is
no change in the scheduled shutdown, and said the plan is for the
Spring Hill plant to make up the lost production at some point.
Spring Hill just started shipping the new XT5, which is a
crucial piece of GM's attempted revitalization of the Cadillac
brand. The spokesman said there is no expectation that expansion
plans or temporary shutdown will delay or impact the XT5 launch in
any way. The plant is also ramping up production for the launch of
a redesigned GMC Acadia.
An additional $118 million will be invested in GM's Bay City
Powertrain facility, which creates engine components for Spring
Hill and other powertrain plants. GM said that investment will lead
to 29 new jobs and the retention of 67 jobs.
Write to Gautham Nagesh at gautham.nagesh@wsj.com
(END) Dow Jones Newswires
April 27, 2016 16:45 ET (20:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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