General Motors Co. will build a $174 million stamping plant near its Lansing Grand River assembly complex, with plans to add 145 jobs.
The Detroit carmaker said Wednesday the 225,000-square-foot plant will make components for the Cadillac ATS and CTS luxury car lines built at the Grand River plant, as well as parts for a “future product” it did not name, when it opens in 2016.
But local GM leaders said the new plant is necessary as GM plans to move production of the Chevrolet Camaro muscle car from Canada to the Grand River plant, possibly in 2015.
It also will launch a coupe version of the compact ATS sedan in the fourth quarter.
This will be GM’s second local stamping plant. The first opened in 2003 near its Lansing Delta Township assembly plant.
“When you look at our future plans, without this expansion we wouldn’t be able to build everything that we’re going to be needing from our current stamping plant,” said Tony Francavilla, GM’s Lansing regional plant manager. “If we wouldn’t have the ATS and the CTS, we wouldn’t have the Camaro, either.”
Hiring preference will be given to current GM employees who want to transfer to Lansing, Francavilla said. Wages will depend on experience. Employees with less seniority earn about $14 per hour under a two-tier wage scale GM negotiated with the United Auto Workers.
Workers will be represented by UAW Local 652, which also represents more than 1,400 hourly employees at Lansing Grand River.
“It gives you a lot more capabilities for products that we build here and future products that we build here. We’re pretty excited about it,” Local 652 President Mike Green said. “Things are definitely moving in the right direction in Lansing.”
GM said the stamping plant will save the company roughly $14 million annually in logistics costs of moving materials.
The new plant brings GM’s investment in the Lansing region to more than $533 million since 2010.
The carmaker has started construction on a $44.5 million, 400,000-square-foot logistics center at its Grand River complex that will sort and deliver parts to the assembly line when it opens in 2015. That facility will add another 200 jobs.
“Lansing Grand River Assembly is known for the high quality of its work and the flexible manufacturing that has been a trademark since it opened,” said Christine Sitek, GM’s North America manufacturing manager, in a statement. “Today’s announcement demonstrates GM’s commitment to strengthening key plant capabilities related to quality and efficiency.”
Until Wednesday, GM had not confirmed plans for the new stamping plant. But in April, Lansing City Council approved a package of tax incentives that will give the automaker a 14-year break on real property taxes covering half of the taxes on the building, as well as a 25-year incentive that covers 100 percent of taxes on personal property, such as equipment.
At the time, GM said the plant would cost $162 million and create 65 jobs.
“Once again, our hometown car company is hitting it out of the park with a massive new investment at Lansing Grand River,” Lansing Mayor Virg Bernero said in a statement. “I’m deeply grateful to General Motors for making the Lansing region a centerpiece of its global manufacturing strategy.”
Source: MEDC
Click here to be introduced to the MEDC