GM may look towards Mexico for production of Chevy Equinox

Written by Reuters | Detroit | Updated: Aug 29 2014, 08:36am hrs
General Motors and the United Auto Workers on Wednesday trumpeted the news that production of the Cadillac SRX would be shifted from Mexico to Tennessee.

However, the car-maker also plans to move some other assembly work in the opposite direction: the company, Reuters has learned, plans to shift some production of the Chevrolet Equinox from Spring Hill, Tennessee, to Ramos Arizpe, Mexico, when the crossover vehicle is redesigned in 2017, according to an industry source familiar with GMs plans. That move could

partially offset any new

jobs created by the shift of SRX work from Ramos Arizpe to Spring Hill, which is expected in mid-2016, the source said.

Both GM and the UAW declined to comment on whether the Equinox work would move to Mexico.

As for how many jobs the addition of the SRX at Spring Hill would create, based on current and projected figures provided by GM, Reuters estimates the move could add about 200 jobs at the plant. A GM spokesman said it would be fair to say that there would be a net increase but declined to be specific. Earlier in the day, UAW president Dennis Williams said in a statement that the shift of Cadillac

production from Mexico to the United States was a big victory for the union.

The UAW declined to say how many jobs would be added in Spring Hill. GM told Reuters on Wednesday that the current SRX will continue to be assembled in Mexico for an unspecified period of time after the new SRX begins production in Spring Hill. GM said a year ago it planned to invest $350 million in the Spring Hill plant, which was built originally for GMs now-defunct Saturn brand.