GM offers good news
WARREN, Mich. — General Motors Corp. will invest $332 million in its Warren transmission plant to expand production of a new line of fuel-saving six-speed transmissions, news greeted with a cheer from Michigan workers worried about job cuts at the automaker.
The investment will allow the nearly 50-year-old factory to produce front-wheel-drive automatic transmissions for the 2007 Pontiac G6, the new 2007 Saturn Aura and three new crossover vehicles: the Saturn Outlook, GMC Arcadia and Buick Enclave. Construction is set to begin this summer and be completed by early 2008.
The plant’s 1,200 workers won the project after agreeing to new work rules. Under the rules, workers will be grouped into four- to six-person teams instead of following strict job classifications. Team members also will work more closely with product designers to suggest improvements.
“We’re not holding General Motors back with our labor agreements,” United Auto Workers Vice President Richard Shoemaker, the union’s chief GM negotiator, said during an event at the plant. “Instead of being the problem, it’s clear to me we’ve been a big part of the solution.”
State and local incentives also played a role in attracting the investment. The city of Warren recently approved a $21 million, 12-year tax abatement for GM, while the state approved a $4.9 million tax abatement.
“GM is the big fish that swims and we’re all part of the food chain, so we better get in line and do what it takes to get food,” Warren Mayor Mark Steenbergh said.
The new transmissions get 4 percent better fuel economy than GM’s current four-speed automatic transmissions, GM Chairman and CEO Rick Wagoner said. Wagoner said GM already makes more vehicles that get 30 miles per gallon or more than any other automaker.
“These new six-speeds and technologies will enhance that position,” he said.
Six-speed automatics reduce engine revolutions per minute at highway speeds, cutting back on noise and engine wear and saving fuel. Six-speed automatics will be launched in nearly 40 GM cars and trucks worldwide in the 2006 and 2007 model years. The company intends to produce 3 million of these transmissions annually by 2010.
Wagoner also bid farewell to Shoemaker, who plans to retire this month.
“His leadership will be greatly missed by all of us,” Wagoner said during what is expected to be his last public appearance alongside Shoemaker. Workers gave Shoemaker a standing ovation.