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Monday, November 28, 2011

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GM to build Chevy Equinox at former Saturn plant By Chrissie Thompson Detroit Free Press

General Motors/Detroit Free Press/MCt

Customer demand has outpaced production for most of the two-year life of the Chevy Equinox. General Motors will reopen its former Saturn plant in Tennessee to build the popular crossover and other hot products.

DETROIT — General Motors will reopen its former Saturn plant in Spring Hill, Tenn., to build the Chevrolet Equinox and other hot products, providing an opportunity for at least 280 Lansing, Mich., workers to return to their homes in Tennessee. The assembly plant, which closed two years ago last week, will at first add 685 jobs next year after a $62-million investment, GM labor chief Cathy Clegg said Nov. 21 in an address broadcast from Tennessee. The “ultra-flexible”

factory will be able to build vehicles that are in short supply, assisting primary factories around the country. It will also build vehicles while their primary plants retool. “We do not want to miss an opportunity to get a customer in one of our vehicles,” Clegg said. GM has already missed thousands of sales of its Equinox crossover, as customer demand has outpaced production for most of its two-year life. Later, for the 2015 model year, GM plans to add 1,200 additional jobs in Spring Hill and invest $183 million to build as-yet-unidentified mid-

size vehicles, Clegg said. The Saturn plant closed at Thanksgiving time in 2009, as GM adjusted to slow U.S. sales. More than 800 Spring Hill workers were offered the chance to follow their product, the Chevrolet Traverse crossover, to the Delta Township assembly plant near Lansing. About 280 of those workers took a small relocation bonus, which will allow them to return to Spring Hill. The rest took a larger payment, so they might be able to request a transfer back, but they aren’t guaranteed a first shot at the new jobs.

The Spring Hill factory had opened in 1990 with special labor rules, vowing that Saturn was “a different kind of car company.” Those rules disappeared over time, and the plant built only Chevrolets starting in 2008. But GM intends to make Spring Hill a unique plant once again with the build-what’s-hot model. Reopening the Saturn plant also gives the United Auto Workers union a foothold in the non-unionized South, as UAW President Bob King pursues his dream of organizing workers at factories such as Volkswagen’s in Tennessee or Hyundai’s in Alabama.

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