GM Brings Back More Laid Off Workers
General Motors has announced a big investment its Spring Hill, Tennessee engine plant, bringing back 483 laid off workers. By sheer coincidence, the investment is $483 million. This is the latest action in a new round of hiring as the "domestic three" emerge from one of the most difficult periods in automotive history.
"When the new GM emerged from bankruptcy, there's been almost 3 billion dollars in the united states with almost ten thousand jobs going back into the economy," said GM North America President Mark Reuss, in a ceremony at the plant.
Specifically, the company said it's invested $2.9 billion in twenty U.S. plants, creating 7,417 jobs.
General Motors has recently added production at a number of facilities that are either making brand new products, or making products like the company's small SUV's that are in short supply. For example, the Lordstown, Ohio plant added a third shift and brought back 1200 workers to build the new Chevrolet Cruze compact car.
The bulk of the investment will go to retool the Spring Hill Engine Plant to build GM's next-generation 4-cylinder Ecotec engine, tripling GM's capacity to build 4-cylinder engines.
"This is the future of General Motors, of fuel economy, of emissions, and the greening of the auto industry," said Reuss.
General Motors laid off about 2,000 workers at Spring Hill last year and about 800 of those workers have relocated to GM plants in other states.
The nearby Spring Hill Assembly plant remains idled--on "stand-by" as GM puts it--ready in case the company needs the capacity.
"I would hope with the cooperation of GM and, in the future, that we're down here again in a year or two announcing a vehicle in this plant," said Joe Ashton, UAW vice president of the GM Department.
Most of the jobs that have been restored at General Motors have been filled by workers who were on layoff. But those rolls are dwindling, and that could lead to new hiring. CEO Dan Akerson says it all depends on demand for the company's products going forward.
"It's clear that we have demand, good demand, strong demand in certain models, certain brands" he said. "It's my certain hope that demand will drive production. Obviously, associated with production will be jobs."
All three of the domestic auto companies are allowed to hire new workers at a wage that's roughly half of what current UAW members make. It's unclear how many of those "second tier" workers General Motors has hired.
Ford has hired several hundred new workers as it ramps up production of the new Explorer at it's Chicago Assembly Plant. Chrysler has added even more jobs at its Jefferson North facility in Detroit, where a second shift was recently added, and a third shift is reportedly being considered. Jefferson North makes the new Jeep Grand Cherokee and a new version of the Dodge Durango.
The UAW's Joe Ashton pleased to see that his members are returning to their jobs.
"We're the people that pay the taxes, fight the wars and do the right thing."
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