A total of $65 million will be invested by General Motors in two currently open engine plants in New York and Tennessee. Of this figure, $33 million will be for the Tonawanda plant close to Buffalo, N.Y. This will save or add 100 jobs. The $32 million will go to the Spring Hill plant in Tennessee, located about 30 miles south of Nashville, keeping or creating 63 jobs. A majority of the New York jobs will be filled by workers who had been laid off.
Currently, the Tonawanda plant has 83 workers on lay off, an improvement over the 179 workers that were laid off after GM’s bankruptcy in 2009. GM didn’t provide further details about how many were laid off in Tennessee.
These investments are included in GM’s $2 billion plan revealed in May that would save or create 4,000 jobs in 17 plants in eight U.S. states. GM spokeswoman Mary Ann Brown said that the $33 million allotted for New York comes after the 2010 investment of $825 million in that plant.
These plants will produce fuel-economic 2.4-liter "Ecotec" four-cylinder engines for Chevrolet cars and crossover SUVs such as the Chevrolet Malibu sedan, GMC Terrain crossover, and Equinox crossover. For the month of May, the top-selling car in the U.S. was the Malibu.
However, it fell behind two pickup truck lines: Ford Motor Co.’s F-series and the Chevrolet Silverado. According to Steve Finch, Tonawanda plant general manager, there are now 850 workers at the plant. He added by next spring, the laid-off workers will be called back.
The investments on Spring Hill and Tonawanda were made possible due to the U.S. manufacturing investment in the amount of $2 billion. This was announced on May 10 and the goal was to create, or even retain, an estimated 4,000 jobs under 17 facilities in 8 states. GM had invested starting in July 2009, a total of $3.4 million for its manufacturing facilities in the U.S., and allowing them to add or keep at least 9,000 jobs.
UAW vice president-GM Department Joe Ashton relates that with the price of gas becoming more and more unstable, and if GM was to remain competitive, it has to invest in new powertrains. Customers will always want vehicles that deliver great gas mileage, he added, and its members have more than proven that they can create advanced products that can surpass the expectations of its customers. In addition, GM also revealed Friday that the aluminum casting to be used to the Ecotec 2.4-liter engine will be exported from the Saginaw Metal Casting Operations.
This engine is the same one that powers the Chevrolet Captiva and the Opel Antara, both released in the Asian market. As a result, the Saginaw project will result in the creation or retention of 53 jobs. Known as one of the largest car manufacturers in the world, General Motors (NYSE:GM, TSX: GMM), had its beginnings as early as 1908. At present, its headquarters is located in Detroit and the company has an estimated 202,000 employees in almost every region worldwide and conducts business with at least 120 countries.
GM, with its partners, manufactures cars and trucks in 30 different countries. It then sells and services these vehicles through these brands which are the Buick, GMC, Chevrolet, Cadillac, Vauxhall, Holden, Opel, Isuzu, Baojun, Jiefang, Wuling, and Daewoo. For GM, its largest market continues to be China, followed by the U.S., Brazil, U.K., Germany, Canada, and then Italy. Its OnStar subsidiary remains to be the leader when it comes to information services, security, and safety. To know more about General Motors, visit www.gm.com.