Boston, MA 08/28/2014 (wallstreetpr) – General Motors Company (NYSE:GM) has announced plans to shift the production of the next generation Cadillac SRX SUV from Mexico where it is currently being produced to Its Spring Hill, Tennessee plant. Reuters is reporting that GM plans to offset the shift in production by consequently moving of the manufacturing of Chevrolet Equinox from Tennessee to Mexico.
GM’s Investments
General Motors Company (NYSE:GM) has also announced plans to invest a total of $185 million at its spring Hill plant. The funds will be used to accelerate the making of small displacement gasoline engines, able to attain fuel economy as required by regulations. A further $48.4 million is set to be invested’ at the Bedford Plant that specializes in the manufacture of transmission components, as well as engine blocks.
Jobs Creation
The investments should increase the efficiency of the two plants while also safeguarding a total of 390 jobs in Spring Hill, creating a further 45 at the Bedford plant. Genera Ramos Arizipe plant will continue to assemble the SRX model according to General Motors Company (NYSE:GM), for the foreseeable future. The latest investment is a major victory for Spring Hill plant considering production had been halted in 2009 although the plant continued to operate at reduced capacity.
General Motors Company (NYSE:GM)’s spring hill plant currently develops the small Ecotec engines that have the capacity of displacing between 1 and 1.5 liters and designed for high-volume cars. Having been built in 1988, Spring Hill was the base for the production of the ill-fated Saturn small CARS, which were axed’ as the General Motors found itself submerged in the murky waters of the financial crisis in 2008.
The plant is also accredited of producing Chevrolet Transverse Crossover SUV and currently makes Chevrolet Equinox SUV’s at the back of 1,575 employees. United Auto Workers have already expressed their excitement on the news that production of SRX will be shifted to the U.S.
