GM Shifts Cadillac SRX Production from Mexico to Tennessee

Aug 27, 2014 07:00 PM EDT | Jordan Ecarma

As it works to bring jobs back into the U.S., General Motors announced Wednesday that it will invest around $185 million into its Spring Hill, Tenn., plant and move production of the Cadillac SRX to the American factory.

Production of the Cadillac SRX crossover SUV had been taking place in Mexico. GM also plans to bring more small gasoline engine manufacturing to the Spring Hill plant, the Associated Press reported.

GM said in a statement that bringing the SRX and a not-yet-named second vehicle to the factory will "create or retain" around 1,800 jobs. Additionally, the $185-million investment will help keep 390 jobs, according to the automaker.

The investment will go toward making small-displacement gas engines keep pace with tightening regulations on fuel economy, USA TODAY reported.

GM said last year that it will invest $350 million altogether into the Spring Hill facility, an investment deal that was part of an agreement with the United Auto Workers union. The Tennessee plant comprising around 1,575 workers closed for about two years during GM's restructuring following the bankruptcy, then reopened in 2011 as part of union negotiations.

The Mexico facility that is currently building the SRX also produces the Chevrolet Sonic subcompact car and Chevy Captiva SUV, according to the AP report. 

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