GM to shift some Equinox production to Ramon Arizpe site in Mexico

Article by Christian Andrei, on August 30, 2014

While General Motors and the UAW have announced the shift of production of the Cadillac SRX from Ramos Arizpe, Mexico to Spring Hill, Tennessee. Still, Reuters has also learned from sources that the carmaker is also planning to move some production of the Chevrolet Equinox from other way around.

GM is planning to shift output of the Equinox from Spring Hill to Ramos Arizpe when the crossover is redesigned in 2017, partially offsetting any new jobs created by the shift of SRX work by mid-2016, the source told Reuters. Reuters estimates that addition of the SRX at Spring Hill would create around 200 jobs.

A GM spokesman remarked that it would be fair to say there would be a net increase in the number of workers at Spring Hill. UAW President Dennis Williams has said in a statement that the shift of SRX production was "a big victory" for the union, which declined to disclose the number of jobs to be added in Spring Hill.

GM told Reuters that the current SRX will still be assembled in Mexico for an unspecified period of time following the start of SRX output in Spring Hill. The carmaker remarked in 2013 that it intended to spend $350 million in the Spring Hill site.

At the time, GM said the Spring Hill facility would be retooled to produce two new midsize crossover vehicles. Aside from the new SRX, the Spring Hill site is expected to produce a replacement for the GMC Acadia, the source told Reuters.

GM recently announced it will invest another $185 million to produce a new class of engine at the site, resulting to the retention of around 390 jobs.

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