Saturn Plant May Build SUVs
Key General Motors Corp. officials have signed off on a plan to build a sport-utility vehicle in Tennessee, local union leaders say.
The plan calls for an estimated investment of more than $230 million to add another production line and make other changes at the Saturn plant in Spring Hill, said Mike Bennett, bargaining chairman for United Auto Workers Local 1853.
The move could also mean up to 1,000 new workers at the auto plant which now employs 7,200, he said.
"I think it's a real milestone in terms of commitment from GM to extend the principals of Saturn," said Bennett, who in recent months accused GM of failing to live up to Saturn's unique labor-management partnership that calls for employees to be full partners in company decisions.
Approval by GM's board should come in the first half of 1999 and production could begin in 2001, Bennett said.
Saturn spokesman Greg Martin said GM has the final say on all Saturn products and no decision has been made on whether a sport-utility vehicle will be built. He declined to comment further.
In a conference call Wednesday morning, Saturn Chairman and President Don Hudler declined to confirm the plan but said "there's a high desire" to produce the vehicle in Spring Hill.
"We still have to be good enough to put the business plan together. We're confident we can do that but we don't want to get into talking about what the future products are," he said.
Hudler did say Saturn is committed to boosting production at Spring Hill to 500,000 vehicles per year. The plant turned out about 270,000 cars last year. Bennett said adding a sport-utility vehicle would boost production at the Spring Hill plant to about 420,000 vehicles per year.
GM was nearly shut down this summer by strikes at plants in Flint, Mich. Two months ago, Saturn workers gave union leaders authority to call a strike if no headway was made in discussions about issues including job security, bonuses and input on management decisions.
Saturn workers have grumbled during the ast two years that GM cut them out of major decisions, including the plan to build a new vehicle in Delaware and hasn't produced as many cars in Spring Hill as promised.
Written By Vicki Brown