Wednesday, June 1, 2016

GM Rumored to Bring Truck Production Back To U.S.


General Motors is rumored to be reallocating a majority of its Chevrolet Silverado and GMC Sierra pickup truck manufacturing from its Salio, Mexico plant to the Flint, Michigan assembly plant, where a large percentage of Silverados and Sierras are built.

The rumor comes from United Auto Workers Union members who say they received a letter from GM advising them of the likelihood of increased hiring of both full-time and temporary assembly line workers at the Flint plant, along with the ability for current workers to log significant overtime hours. The Detroit Bureau, which broke the story, reports union workers quoting the letter as saying, “The increase in light-duty pickup volume for Flint Assembly is (for vehicles) currently being built in Silao.” Workers say the letter continued in saying union members can work as many Saturdays as they want, earning an extra $12,000 to $15,000 next year.

Though GM and the UAW have not made official announcements regarding the move, the news does line up with GM’s sizeable, $877 million investment at the Flint plant, which was announced in August of 2015 with an estimated completion date of 2018. As we reported, the investment will bring a new body shop facility that stamps body parts like doors, hoods, fenders, and bed panels. Upgrades to the paint facility, added shipping docks, and upgraded assembly line equipment are also included in the investment.

The realignment in production is likely scheduled to commence with the introduction of the next-generation Silverado and Sierra pickups, due out for the 2018 model year. Production would need to begin in early to mid 2017 for the updated pickups.

There is no word on GM’s plans for its Silao, Mexico plant, or if this will affect Silverado and Sierra production in GM’s other assembly plants, located in Indiana and Canada.

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