GM Moves $245 Million Investment From Michigan to Kansas Plant

Just last year, General Motors announced it would spend $245 million at its Orion Assembly plant to build “an all-new vehicle program unlike any in the plant’s 32-year history.” Now, according to a report from Automotive News, GM is moving that investment to its Fairfax plant in Kansas City, Kan.

The switchover is “part of our ongoing product allocation process to build vehicles as cost-effectively as possible to benefit our customers and the business,” a GM spokeswoman told AN.

Although GM hasn’t confirmed exactly which car it plans to build with the money, a source hinted to us last year that it’s a Cadillac crossover. Considering the model has “no predecessor,” we think it’s a small crossover, perhaps an upcoming XT3 or XT1. The model was expected to begin production in 2017.

GM notified Orion employees of the investment switch back in January. The Orion plant has faced a number of challenges recently. Earlier this year, GM cut a shift at the plant due to slow demand for small cars.

Currently, the 4.3 million square-foot facility just north of Detroit builds the Chevrolet Sonic and Buick Verano. Rumors say GM may move Verano production to Mexico later this year, which would leave the Orion plant even emptier than it already is if it weren’t for a new product introduction. In late 2016, the plant is expected to house production of the Chevrolet Bolt EV, and the automaker has already invested $160 million into retooling for this new vehicle.

Meanwhile, GM’s Fairfax Assembly plant currently produces the Buick LaCrosse and Chevrolet Malibu. Most recently, the plant received $174 million for equipment and testing technology to support the Malibu. In 2013, it received a new paint shop and press upgrade for $600 million.

Source: Automotive News (Subscription required)

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