Cost per taxpayer subsidized job will be controversial no doubt - the reason they weren't announced?
General Motors Company today promised to spend $483 million of taxpayer money and return 483 jobs of the 2,000 lost to its former Saturn plant complex in Spring Hill Tennessee.
There’s a catch though. This investment assumes successful “incentive negotiations” with local and state officials, according to Mark Reuss, GM North America President.
That these negotiations were not completed ahead of today’s press conference shows how leery elected officials are of a taxpayer revolt that is underway less than two months before the mid-term Congressional elections. Another – perhaps more plausible – theory is that the incentives are likely in place, but the politicians don’t want to admit to them before November.
As TDB previously reported, the jobs come from building current – and ultimately next-generation – Ecotec four-cylinder engines, as GM shifts its emphasis from larger and more fuel thirsty V6 and V8 engines. If the deal comes off, GM would triple its North American production volume of four-cylinder engines with direct injection technology by 2012 when more stringent fuel economy rules start to take hold. (See Unloved Ex Saturn Plant to Get New Ecotec Engine)
In a statement GM claimed that the additional work would bring to almost $2.9 billion the amount of new U.S. investment and 7,417 jobs that GM has created or retained in 20 U.S. plants since emerging from a controversial taxpayer financed – more than $50 billion – bankruptcy in July 2009. (Hundreds of thousands of GM jobs were eliminated during the past two years, if you’re keeping score.) Employees filling these positions will be recalled in accordance with the United Auto Workers-GM National Labor agreement, which favors seniority not performance.
“The engines made in Spring Hill will drive the success of GM to meet our customer demands for advanced powertrains which offer high fuel economy without sacrificing performance,” Reuss said.
The spending announced today includes $23 million that would add only 30 hourly jobs to increase production of 2011 of the current-generation Ecotec engine used in the Chevrolet Equinox, Buick LaCrosse and GMC Terrain in Q1 of 2011.
“We want to be a positive force for putting America back to work,” said Joe Ashton, UAW vice president of the GM Department. “These jobs are important not only to the Spring Hill area, but throughout the region as well. Our union will work hard to ensure that there will be more good news for GM that in turn will be good news for the UAW.”
Currently, the Spring Hill Powertrain Plant produces three versions of the Ecotec engine, which is made globally: The 2.4-liter with direct injection (DI) is used in the Equinox, Terrain, LaCrosse, Buick Regal, Chevrolet Captiva (Mexico) and Daewoo Alpheon (Korea). The Ecotec 2-liter DI Turbo is used in models of the Opel Insignia (Europe), Buick LaCrosse (China), and Regal. The Ecotec 2.4-liter Multiport Fuel Injection engines are shipped to Korea for the Captiva and Antara.
The bulk of the promised investment — $460 million and 453 hourly and salaried jobs – is planned for the next-generation Ecotec engines.
“Both of these investments highlight the confidence the company has in the work force in Spring Hill to produce outstanding quality engines for our products of today and tomorrow,” Reuss said, adding that the investments have no bearing on the Spring Hill Assembly Plant, which remains on stand-by status should more vehicle production capacity be needed.
The additional Spring Hill powertrain production follows announcements in February of $494 million for additional capacity at GM plants in Tonawanda, New York, Defiance, Ohio; and Bay City, Michigan. Those projects are expected to result in about 550 jobs.
Next-generation Ecotec engines are said by GM to have additional capabilities to improve fuel efficiency, reduce noise and vibration and improve performance.
Plant History:
1988 – Topping-out ceremonies for Powertrain plant – first building on site, housing a foundry, transmission and engine manufacturing operations
1989 – First Saturn 1.9-liter engine produced in the Powertrain facility
July 30, 1990 – The first Saturn – a red SL Sedan – rolled off the line in Assembly
2000 – Spring Hill breaks ground for new Powertrain building which will produce the global Ecotec 4-cylinder engine
August 29, 2002 – Last Saturn S-series rolls off the line
2002 – Production of Ecotec engine for Saturn VUE and ION begins in Spring Hill
October 3, 2003 – Spring Hill produces 3 millionth vehicle
2003 – In the final year of production, Saturn transmission operations were cited as the most improved transmission plant in productivity on the 2003 Harbour Report
June 26, 2004 – National Contract ratified by UAW Local 1853
2005 – Spring Hill Powertrain begins shipping Ecotec 4-cylinder engines to China
2006 – Spring Hill Powertrain launches Ecotec 2.0L Turbocharged Direct Injection Engine
March 28, 2007 – Last Saturn ION rolled off the line
March 30, 2007 – Last Saturn VUE rolled off the line
April 1, 2007 – Conversion to new Traverse production facility begins
2007 – Spring Hill Powertrain named “Most Efficient Engine Plant in North America” on 2007Harbour Report
September 2, 2008 – Production of Chevy Traverse begins
October 3, 2008 – Celebration of the launch of the Chevy Traverse
2008 – Spring Hill Powertrain begins shipping Ecotec 2.0L Turbocharged Direct Injection Engines to Europe
2009 – Spring Hill Powertrain launches Directed Injected 2.4L Engine
September 2009 – Spring Hill produces the 2,000,000th Ecotec Engine