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GM to invest $331 million in Arlington plant, add 110 jobs
[May 26, 2011]

GM to invest $331 million in Arlington plant, add 110 jobs


May 26, 2011 (Fort Worth Star-Telegram - McClatchy-Tribune Information Services via COMTEX) -- General Motors will invest $331 million to upgrade and expand its Arlington truck assembly plant to produce a new lineup of sport utility vehicles, the company announced today.



Exactly when the plant will begin producing those new vehicles is still up in the air, with some auto industry analysts suggesting it may not be until mid-2013.

The expansion will add 110 jobs to the plant, which currently employs about 2,400, once the overhaul is completed and production of the new model vehicles begins.


"This is great news for GM, great news for the United Auto Workers and great news for Arlington," said Larry Zahner, GM's manufacturing manager who came from Detroit to make the announcement at the plant.

"This investment will allow us to continue building award-winning full-size SUVs that offer better fuel efficiency than ever before without sacrificing the features and functionality our customers expect," said Zahner. "This investment represents a lot of confidence in GM and in Arlington." The announcement was made at the plant, which stopped production for about an hour so first-shift workers could sit in. It was attended by a host of local UAW leaders, Arlington Mayor Robert Cluck and Tarrant County Judge Glen Whitley, as well as other local officials.

GM plans to introduce newly designed versions of its large SUV lineup, which now includes Chevrolet Tahoes, Suburbans, GMC Yukons and Cadillac Escalades. For competitive reasons, Zahner said the company would not disclose the timing of introducing the new vehicles.

But it's unlikely GM will introduce the first new models before mid-2013 as a 2014 model, said Tracy Handler, production analyst for IHS Automotive.

GM has to take its time to completely re-engineer the SUV lineup "to really be competitive in the segment for the long haul," Handler said.

With new government-mandated fuel economy regulations, Handler said, GM needs "to take about 500 pounds out of the weight of the SUVs and that engineering is taking some time. They will also need to really update the power train offerings in order to meet fuel economy requirements." GM's plans for replacing the existing models were slowed during the company's bankruptcy and as the marketing and design staffs debated whether to continue building body-on-frame, truck-based SUVs or switch to a lighter crossover-type vehicles.

The argument was won by truck advocates. "The market for a full-size utility that can tow is still going to exist and GM is well positioned to maintain their market dominance," Handler said.

Plant manager Paul Graham said detailed planning for how and when to re-tool the plant will begin immediately. The company plans to start construction on a 108,000-square-foot addition to the heavily automated body shop in the third quarter.

In recent weeks, GM executives have been announcing a series of investments they say will total $2 billion to upgrade and expand 17 existing manufacturing and assembly plants to produce a continuing series of new models.

GM has secured property tax breaks from Arlington, Tarrant County and the Arlington school district that officials said were needed for the plant to be considered for the investment.

On May 10, the Arlington City Council voted 9-0 for a 90 percent tax abatement on new equipment for seven years for the plant upgrade. The Arlington plant, which has been producing vehicles since 1954, is now the only one producing GM's six large SUV models sold under the Cadillac, Chevrolet and GMC brands. With employees working 50- and 60-hour weeks all last year, the plant built more than 280,000 vehicles in 2010, its most ever.

Bob Cox, 817-390-7723 To see more of the Fort Worth Star-Telegram, or to subscribe to the newspaper, go to http://www.dfw.com. Copyright (c) 2011, Fort Worth Star-Telegram, Texas Distributed by McClatchy-Tribune Information Services. For more information about the content services offered by McClatchy-Tribune Information Services (MCT), visit www.mctinfoservices.com.

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