GM to invest $790M in Spring Hill plant, create 800 jobs
General Motors announced plans Wednesday to invest $790 million and hire hundreds of workers at its Spring Hill plant as the automaker prepares to launch a new high-efficiency engine program.
The cash infusion is part of commitments GM made as part of a four-year contract ratified in the fall by UAW members to invest $8.3 billion over the next four years at its new plants.
On hand during a news conference Wednesday at the Spring Hill facility, Gov. Bill Haslam heralded the announcement as highlighting GM's commitment to Tennessee and solidifying the Volunteer State's status as a major automotive sector hub. Haslam was joined by other local, state and federal officials at the news conference.
“Tennessee has an incredibly strong business climate, and we continue to attract investment from companies that can choose to do business anywhere in the world. It is important to see long-time partners like GM continue to invest in Tennessee and create high-quality jobs here," he said.
GM officials declined to provide specific details about the high-efficiency engine program, which will account for $634 million of the $790 million investment in Spring Hill. The remaining $156 million will go toward modernizing vehicle programs at the facility. Construction on the projects is expected to begin next month and will last several years.
Spring Hill produces the Cadillac XT5 and the GMC Acadia. On Monday General Motors rolled out the first Cadillac XT5 manufactured at the plant during a special ceremony with city of Spring Hill officials.
Since 2010, the automaker has invested more than $2 billion at the Spring Hill site, including $936 million this year.
Also on Wednesday, GM announced a $118 million investment in its Bay City, Mich., Powertrain plant, which is expected to create 29 jobs and retain 67. The company has invested $249.4 million in the Bay City facility since 2010.
In Tennessee hiring for 792 positions will begin toward the end of the year, according to GM manufacturing manager Arvin Jones.
The announcement comes on the heels of last week's news that production at the Spring Hill plant would be temporarily shut down after a pair of earthquakes in Japan disrupted the automaker's supply chain. GM's facilities at Spring Hill; Oshawa Flex Assembly, Canada; Lordstown, Ohio; and Fairfax, Kan., are to be shuttered for the next two weeks that began Monday.
"As GM continues to assess the potential impact on its supply chain from the recent earthquakes in Japan, it is taking proactive steps to mitigate a parts supply issue and is adjusting production schedules at four of its North American assembly facilities," GM spokeswoman Courtney Zemke said.
An autoworkers' union official said those employees affected by the shutdown will receive 74 percent of their gross wages for however long the idling lasts, as long as those employees have worked at the site for at least one year.
There are 2,643 workers — 2,271 hourly and 372 salaried — at the Spring Hill facility. Zemke said the company is doing what it can to lessen the blow of the disruption to its personnel.
Wednesday's announcement has no impact on the production stoppage, officials said.
In a statement, UAW Vice President Cindy Estrada said UAW members at the Spring Hill and Bay City facilities have reputations for quality work and craftsmanship.
“Since the 2015 collective bargaining agreement, GM has invested more than $1.7 billion and UAW-GM members, their families and their communities will all benefit for years to come," Estrada said.
Mike Herron, chairman of UAW Local 1853, called GM’s announcement Wednesday a significant day for workers in Spring Hill.
“…It gives them a piece of mind knowing full well that they’ll be able to go ahead and work at this location for the foreseeable future, (and) even though we’re in a very cyclical industry, that we have a secure location here at this site,” Herron said.
He added that collective bargaining was “absolutely critical” to the automaker’s investment plan and said a group of UAW and GM officials were in Michigan last week finalizing the details.
In a statement, U.S. Sen. Lamar Alexander said GM's investment is “further proof that Tennessee is the right place for the auto industry," adding that GM considered proposals from 38 states before it built the plant in Spring Hill.
U.S. Sen. Bob Corker called the automaker's announcement "great news for Maury County and surrounding communities."
“These high-quality jobs will benefit Middle Tennesseans and further solidify the Volunteer State as the premier location for auto manufacturing," Corker said in a statement.
The Spring Hill manufacturing facility opened 26 years ago and produced Saturn vehicles until 2007. In February GM announced the facility will build V8 engines for trucks and SUVs by the end of the year in a $148 million investment that is expected to retain about 200 jobs.
Detroit Free Press reporter Brent Snavely contributed to this report.
Reach Lizzy Alfs at 615-726-5948 and on Twitter @lizzyalfs.
