General Motors, together with United Auto Workers, announced on Wednesday that the American carmaker will move the production of its Cadillac SRX from Mexico to Tennessee.
Citing sources, Reuters said GM is also planning to transfer the production of other units, such as the Chevrolet Equinox, from Tennessee to Mexico after the production of the redesigned car in 2017.
The projected number of jobs that the move of the SRX production to Spring Hill, Tenn., will create is 200, but a GM spokesman hinted that it could be more though he didn't spill the details.
The announcement of the transfer is considered to be another victory for the UAW union, UAW President Dennis Williams said. However, he didn't share the exact number of jobs available for Spring Hill. For this year, the SRX production will remain in Mexico.
"Today's announcement is proof we can achieve great things when workers have a seat at the table and the chance to share their ideas for how to constantly improve the products we manufacture," UAW Vice President Cindy Estrada told the Wall Street Journal.
The Spring Hill plant will not be solely used for SRX production, but for GMC Acadia as well. Last year, GM announced that it is investing $350 million in the renovation of a plant in Spring Hill to lodge crossover vehicles, and another $185 million for the development of a new car engine. The project is expected to create 390 jobs.
The Spring Hill plant was closed by GM for two years due to bankruptcy, but it reopened in 2011. To date, it has about 1,575 workers. According to the USA Today, the production of the redesigned Cadillac SRX in Spring Hill is expected to begin in late 2015, and will be out in the market by early 2016.
