$365 Million Invested in Saginaw County Advanced Manufacturing
SAGINAW, MI, US (October 26, 2011) State of Michigan Governor Rick Snyder attended back-to-back announcements that will have a significant impact on Saginaw County's automotive sector and all of the Great Lakes Bay Region. GM Saginaw Metal Casting Operations and Nexteer Automotive will invest a combined total of $365 million that will create and retain nearly 1,300 direct jobs.
GM Invests $215 Million in Saginaw Metal Casting Operations
Future engine block and head casting work supports about 275 jobs
General Motors will invest approximately $215 million to tool the Saginaw Metal Casting Operation for production of future engine block and head casting work, creating or retaining about 275 jobs.
“We look forward to continuing our long and proud heritage of in-house casting for key components,” said Diana Tremblay, GM’s global chief manufacturing officer. “We believe these operations really enhance our ability to provide more fuel-efficient engines to our customers around the globe."
The plant, which currently has about 630 employees on two shifts, builds a variety of aluminum engine blocks and cylinder heads for some of GM’s hottest products, including the Buick LaCrosse and Chevy Malibu. It opened in 1919.
“This announcement is another example of a very positive trend that is occurring at GM,” said Joe Ashton, UAW vice president representing the GM Department. “Saginaw is like so many communities in the Midwest that have suffered the loss of their manufacturing jobs to other countries around the globe. I want to congratulate the members of UAW Local 668 for their hard work and helping brighten the future for Saginaw and the surrounding communities.”
During a plant event announcing the new work, Gov. Rick Snyder presented Tremblay with a state proclamation declaring November 3 as “Chevy Centennial Day” in Michigan. Chevrolet enters its second century with significant global expansion and is on track to report the best annual sales in its 100-year history.
General Motors Co. (NYSE:GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company has leadership positions in the world's largest and fastest-growing automotive markets. GM’s brands include Chevrolet and Cadillac, as well as Baojun, Buick, GMC, Holden, Isuzu, Jiefang, Opel, Vauxhall and Wuling. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety, security and information services, can be found at http://www.gm.com
Nexteer Automotive Announces a $150 Million Investment at its Saginaw Operations - Long-term customer contracts retained through 2018
Nexteer Automotive, a tier one automotive supplier committed exclusively to wheel-to-wheel advanced steering and driveline systems, today announced a $150 million investment at its Saginaw, Mich., operations. Increasing customer demand for fuel-efficient electronic power steering (EPS) technology is the driving force behind the investment, which will result in the retention of more than 1,000 jobs.
“This significant investment is a reflection of Nexteer’s ongoing commitment to the Great Lakes Bay Region and the state of Michigan and recognition of the work being done here by our highly skilled technical and UAW-represented production teams,” said Robert J. Remenar, Nexteer president and CEO. “New, long-term customer contracts through 2018, including General Motor’s next generation full-size pickup, will add revenue that benefits all product lines, allowing us to upgrade and expand
our testing, manufacturing and innovation capabilities.”
“Nexteer is a showcase of Michigan’s world-class technology and manufacturing capabilities,” said Michigan Governor Rick Snyder. “Today’s announcement offers proof positive that foreign direct investment can combine with our own valuable industrial assets for new economic vitality for Michigan. This is the message I took to Asia: serious investors know Michigan’s technology
leadership and workforce advantages offer very real growth opportunities for all of us.”
A major focus of the investment will be related to expanding and upgrading Nexteer’s testing and validation capabilities. Nexteer is the only steering supplier with R&D, testing and validation capabilities entirely in-house. This complete integration provides a real benefit to global customers in terms of responsiveness and service. The company’s Vehicle Evaluation Center (VEC), which is part of Nexteer’s Saginaw operations, will undergo an expansion to allow for additional real-world simulations.
Nexteer’s oldest plant (Plant 3), which currently produces pumps, will receive major upgrades with the addition of new high-tech EPS lines. Of note, approximately 45 percent of the sourcing for the EPS investment will be to Michigan based businesses. EPS is a key technology in assisting OEMs push to increase fuel economy and reduce emissions. Nexteer has EPS systems on a full range of vehicle segments, sizes and classes, from compact cars to full-size trucks. In 2010, the company produced the world’s first 12-volt EPS system for the full-size truck market.
“Nexteer is experiencing significant growth and demand for its EPS systems globally,” said Mike Richardson, Nexteer senior vice president, engineering and global steering business line. “Less than 10 years ago EPS represented four percent of our annual sales, last year it was nearly 30 percent and by 2015 we are anticipating that well over half of Nexteer sales will be attributed to EPS.”
Nexteer is the second largest employer in Saginaw County and currently employs 3,780 individuals. Technical staff and production employment at Nexteer’s Saginaw operations has grown by 20 percent since Pacific Century Motors acquired Nexteer in July of 2010.
“Nexteer has been on an aggressive global expansion and investment path for the past couple of years,” added Remenar. “In addition to Saginaw, Nexteer has continued to expand its operations in India, Brazil, Poland, China and Mexico.”
ABOUT NEXTEER
Nexteer Automotive is a multi-billion dollar global steering and driveline business solely dedicated to electric and hydraulic steering systems, steering columns and driveline products for original equipment manufacturers. Its 9,800 workforce serves more than 60 customers in every major region of the world. The company has 20 manufacturing plants, five engineering centers and 14 customer service centers strategically located in North and South America, Europe and Asia. Nexteer Automotive’s customers include GM, Fiat, Ford, Toyota, Chrysler and PSA Peugeot Citroen, as well as automakers in India, China, and South America. www.nexteer.com