Skilled Trades Association, CAW Local 199 St. Catharines (General Motors Unit) | ||||||
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GM picks Toledo plant for new 6 speed tranny
TOLEDO, Ohio - General Motors Corp. will expand its transmission plant here to produce a new, six-speed automatic transmission, the company announced Monday.
The automaker will spend $504 million to add new equipment and expand the plant, which employs about 3,500 workers.
The expansion won't create any new jobs, but it will secure existing jobs and the plant's future. Given the uncertain state of the auto industry, workers were thrilled.
"These jobs are like dinosaurs. They're going away," said Rocky Ness, an electrician at the plant. "To have this opportunity is phenomenal. This is keeping 3,500 of the best paying jobs in America."
Some workers who were nervous until the announcement was made said the new work will allow them to reach retirement age without worrying about job security.
GM is among those American automakers making major changes in the wake of huge losses. The company is planning to slash 30,000 jobs over the next two years and close 12 of its North American plants.
That's why there was so much celebration at the announcement made in the plant's assembly area where an overhead conveyer belt carried transmissions.
"It means a little stability, a little security," said sheet metal worker Tom Hicks.
The new six-speed transmissions are a big part of the company's future. GM expects to begin equipping more new models with the new transmissions because they provide better performance and fuel economy.
The Toledo plant beat out two other GM plants - one in Ypsilanti, Mich., and the other in Mexico - for the work.
GM officials praised the Toledo plant's productivity, saying it ranked among the best in its entire operation. "You are the reason this work came to Toledo," plant manager Joe Choate told the hundreds of workers gathered for the announcement.
A package of state and city incentives sweetened the deal. The state gave the automaker tax credits and incentives totaling nearly $33 million, which included a job training grant and a seven-year tax credit worth up to $23 million.
Some workers who now build four-speed transmissions for pickup trucks and sport-utility vehicles will be moved to the new production line, which will begin operation in 2008.
The project will add 400,000-square feet to the plant, which occupies 1.8 million square feet.
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