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GM investing additional $167 million in Tennessee plant for new vehicles

Auto maker General Motors plans to spend US$350 million to support new vehicle production at its Tennessee assembly plant, an increase of US$167 million more than originally planned.


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August 6, 2013 by Canadian Plastics

Auto maker General Motors plans to spend US$350 million to support new vehicle production at its Tennessee assembly plant, an increase of US$167 million more than originally planned.

The automaker, which earlier announced a US$183 million investment at its Spring Hill assembly plant in central Tennessee about 60 kilometres south of Nashville, announced the additional funding for a pair of mid-size vehicle programs at the facility.

According to GM, the total investment covers two projects in Spring Hill, Tenn., including another US$40 million added to the previously announced US$183 million cash injection to support a future mid-size vehicle program, bringing the total investment to US$223 million.

That program is expected to create or retain 1,000 jobs at the plant.

The second project is for a second mid-size vehicle program that will see an investment of US$127 million, creating or retaining 800 jobs.

The new programs will add to existing manufacturing operations at the site that include vehicle assembly, stamping and engine and component parts production.

“(This) announcement recognizes the commitment of Spring Hill employees and leadership,” GM North America president Mark Reuss said in a statement. “As a team, they draw upon the plant’s unique heritage and dedicated work force to deliver top quality for our customers.”

The Spring Hill facility operates as a flexible-assembly plant, capable of building a variety of products on a range of platforms.

The facility is designed to supplement production for plants being retooled for new products or add production to meet sales spikes in real time.

Chevrolet Equinox production began at the site in the third quarter of 2012 to meet growing consumer demand and support GM’s Canada operations.

GM Spring Hill, home to the former Saturn brand from 1990 to 2007, operates as a fully integrated complex.