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FOR RELEASE: 2006-12-11

GM Investing $225 Million in Tennessee Plant in Preparation For Future Vehicle Production

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SPRING HILL, Tenn. – General Motors today announced it plans to invest approximately $225 million in its Spring Hill manufacturing complex to renovate the plant’s paint shop in preparation for future vehicle production. The investment is contingent on GM securing incentives from the state of Tennessee.

Based on the strong performance of the Spring Hill team, General Motors’ pending investment affirms the company’s commitment to its Tennessee operations.

“GM’s planned $225 million investment in Spring Hill is proof that this facility remains an important part of GM’s North American manufacturing plans,” said Tim Lee, GM vice president for Manufacturing and Labor Relations. “This project is instrumental to GM’s efforts to strengthen its core manufacturing capabilities in the United States and also demonstrates the value GM places on working together with our UAW partners to improve our manufacturing operations.”

GM’s Spring Hill manufacturing complex built its first vehicle on July 30, 1990. Since then, the complex has built and shipped more than 3.4 million vehicles. It currently builds the Saturn ION passenger car and Saturn VUE compact SUV. Production of the ION and VUE will be discontinued in late March 2007.

With the investment, the plant will be idled for several months for renovations, beginning in April 2007. The company is finalizing the timing of when the hourly workforce will be called back to work and when production will resume at Spring Hill.

The Spring Hill assembly plant employs approximately 3,500 UAW-represented team members and 230 salaried team members. UAW Local 1853 represents hourly employees throughout the complex.

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“GM’s planned $225 million investment in Spring Hill is proof that this facility remains an important part of GM’s North American manufacturing plans,”

They said something similar about Flint when they opened Powertrain South a few years back. The Spring Hill workers probably don't appreciate those kinds of comments quite as much as the workers up here do, though.

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Would be sweet to have the Astra built there, but I wouldn't expect the Astra to be built in the US until the next full redesign, which IIRC is still a couple years away? Maybe they'll move it forward, or start it here sooner than Europe?

How long does retooling usually take, and would the $225M include the tooling costs for whatever vehcile(s)?

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I'm betting you're right about Chevrolet Lambda SUV, but the other product will be Lambda-based as well. You may be surprised at what it is.

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A.... errr..... minivan? Edited by ZL-1
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Not a minivan.

As a clue...what's your least favorite Honda product? The one you (this thread) likes to pick on the most?

226776[/snapback]

Sounds like the next gen of the stillborn Buick Pragmatic (Rendezvous trucklet) a potential Ridgeline competitor.

Edited by bdubsee
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i can think of no other product besides the Ridgeline that is more reviled by many on this board.....

226818[/snapback]

Hmm...maybe GM can build a Ridgeline competitor from the Acadia/Outlook/Enclave platform...call it the Chevrolet Cheyenne..

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Actually Jill Lajdziak alluded to a Ridgeline type vehicle not too long ago as a possibility.

Take the Outlook, then add the midgate/bed features/cover option from the Avalanche, then use the tailgate engineering from the defunct Envoy XUV...and you've got a Ridgeline competitor with more versatility!

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Hmm...maybe GM can build a Ridgeline competitor from the Acadia/Outlook/Enclave platform...call it the Chevrolet Cheyenne..

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I think it would be Theta based rather than Lambda. A Lambda based truck would be close in size to the GMT900s. GM doesn't need 2 vehicles for 1 market. That being said the GMT355s aren't setting the sales charts on fire, why not try out a Theta based crossover/trucklet with better on road manners and better space utility?
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Is the theta being used for the antera/new vue/daewoo chevies etc. a new theta or the same theta that has been used for equinox/VUE/Torrent? If is new, then the optimizations necessary/desirable for the truklet could have been already designed in by GM enginners in Korea. I hope they can use the atlas engine family.

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Not a minivan.

As a clue...what's your least favorite Honda product? The one you (this thread) likes to pick on the most?

226776[/snapback]

Honda Ridgeline?

Would the new vehicle be a pickup based on a car platform? If so, to replace or complement a NG Colorado?

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Im glad this plant will remain open.. they could build pretty much anything there. could be a new GTO but that will likely be built in oshwa alongside the camaro.. they could probably run Cobalts, and HHR's there right now.. could be the rumored Hummer H4.. maybe a Cadillac/Buick Epsilion sedan.. we might have an idea next month after the NAIAS..

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Let's put it this way, most of the time the Ridgeline outsells the Avalanche. It's only natural that GM would want a piece of that, after all, they have been considering it for a long time. It was part of the original Theta program, and an early part of Lambda too.

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There'd need to be something else there too. I can't see them devoting all of spring hill to a ridgeline competitor and a chevy lambda unless the chevy lambda would completely replace the trailblazer....

oh... wait....

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Yes and no.

I'm betting you're right about Chevrolet Lambda SUV, but the other product will be Lambda-based as well. You may be surprised at what it is.

226704[/snapback]

I have feeling I think I know....

And it should show up at one of these auto shows quite soon..... :)

GM has a few Hush-hush items floating around...

Rumor that there was a few LARGE trucks leaving Detroit on their way to the Hill'....

I smell a concept comimg.... :ohyeah::thumbsup:

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Actually Jill Lajdziak alluded to a Ridgeline type vehicle not too long ago as a possibility.

Take the Outlook, then add the midgate/bed features/cover option from the Avalanche, then use the tailgate engineering from the defunct Envoy XUV...and you've got a Ridgeline competitor with more versatility!

226842[/snapback]

I thinking you may be right...or very close...

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I guess Saturn would get the trucklet if to compete with Honda, but I'd really rather see this go to GMC.

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Perhaps Hummer? How many Hummer dealers are there. Really all they have that sells is a Colorado based SUV. I would think GM wants to build that brand too.

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if it went to hummer would it have enough off road capabilities to live up to that brand's image? or is GM ready to pussy out on that brand like jeep did?

i'm sure it is going to be a saturn, and possibly a GMC too. The question is what size and would it compete directly against the ridgeline? A new Avalanche based on this platform might serve that customer base's needs better than a GMT 900 based Avalance. MIGHT....

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A body on frame pickup is more in line with the character of Hummer than a car based Lambda pickup. I still contend this is the Saturn pickup that GM expects to get around 50k sales out of, and will also sell it as a GMC, since that's the truck brand, maybe as a replacement for Canyon.

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