GM looks to increase production in Tennessee

General Motors is planning to expand production in Tennessee provided it can come to a positive deal with state and local officials. The company wants to increase production of its Ecotec 4-cylinder engines and may spend approximately $483 million to install a third engine manufacturing line and create 483 new jobs. If all goes well the company is expected to start by spending of $23 million to increase production of the L850 engine used in some of its more popular car lines. The $460 million and 453 hourly and salaried jobs, would come over a two-year period.

Currently, GM employs more than 1,000 workers at their 6.9 million square foot plant in Spring Hill, Tennessee. The plant manufactures three models of the Ecotec engine for GM plants around the world. GM says that if the expansion moves forward it would rehire employees laid off last year as part of the terms of the agreement the company has with the United Auto Workers (UAW).

“Since last November, we’ve been making the case to GM that Spring Hill is the company’s most modern and efficient plant and can help GM’s return to profitability,” said Community Development Commissioner Matt Kisber.

GM recently emerged from bankruptcy and expects to launch an IPO in the fall. So far, the company has created over 7,000 jobs as it has returned to profitability. This expansion would triple GM’s North American production capability. However, even with that increase parts of the Spring Hill plant which were originally used to build the Saturn car line will remain on stand by.