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GM Moving SRX Crossover Production to U.S.

General Motors Co. is relocating production of the next-generation Cadillac SRX midsize crossover vehicle from Ramos Arizpe, Mexico, to Spring Hill, Tenn., late next year.

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General Motors Co. is relocating production of the next-generation Cadillac SRX midsize crossover vehicle from Ramos Arizpe, Mexico, to Spring Hill, Tenn., late next year.

The move is part of some $583 million in investments GM is making at the Spring Hill facility, which was erected 24 years ago to build Saturn vehicles. The plant was closed between 2009 and 2012.

GM previously announced a $350 million spending plan to prepare Spring Hill to produce two midsize models, the second of which has not yet been identified. The complex currently assembles the Chevrolet Equinox crossover. Media reports suggest the second new model will be the redesigned GMC Acadia due in 2016.

Separately, will spend $185 million at the Tennessee complex to add capacity for sub-2.0-liter gasoline engines. The new powerplant will be used in 27 small car and crossover models by the 2017, according to the company.

GM didn't detail the new engine. But in March it noted that its new family of Ecotech engines will include eleven 3- and 4-cylinder naturally aspirated and turbocharged variants with displacements ranging from 1.0 liters to 1.5 liters and producing between 75 hp and 165 hp. The 1.0-liter 3-cylinder turbocharged engine debuted earlier this year in Europe to power GM's Opel Adam minicar.

Spring Hill already makes Ecotec 2.0-liter turbocharged and 2.4- and 2.5-liter naturally aspirated engines for use in GM vehicles in the U.S., Mexico and South Korea.

To support the added capacity, GM will spend $48 million at its powertrain castings plant in Bedford, Ind. That factory makes transmission casings, converter housings and small engine blocks.

Gardner Business Media - Strategic Business Solutions