Report: GM Quietly Sending Jobs Back to Mexico Plant

Aug 28, 2014 04:00 PM EDT | Jordan Ecarma

General Motors' all-American announcement on Wednesday that it was moving SUV production and jobs from Mexico to Spring Hill, Tenn., may not have been the whole story.

The automaker is also moving production of the Chevrolet Equinox from the Tennessee plant to Ramos Arizpe, Mexico, a shift that could partially offset job gains at the U.S. facility, according to an exclusive Reuters report.

Production of the Chevy Equinox will move to Mexico when the model is revamped in 2017, a source familiar with the matter told Reuters. Neither GM nor the United Auto Workers union would comment.

Reuters estimated that bringing the SRX to Spring Hill will boost the facility's workforce by about 200 jobs.

GM said Wednesday that it plans to invest around $185 million into its Spring Hill, Tenn., plant and move production of the Cadillac SRX to the American factory. The automaker will also bring more small gasoline engine manufacturing to the Spring Hill plant, the Associated Press reported at the time.

A year ago, the automaker said that $350 million altogether would be put into the Spring Hill facility in 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.

GM said in a statement Wednesday that bringing the SRX and a second vehicle that has not yet been officially named to the factory will "create or retain" around 1,800 jobs. 

The factory will produce a replacement model for the GMC Acadia along with manufacturing the SRX, the industry source told Reuters.

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