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General Motors Invests $170 Million to Expand Six-Speed Transmission Production in Ypsilanti


May 2006
 Filed under: GENERAL MOTORS CORPORATE Car News | GENERAL MOTORS CORPORATE Headlines
YPSILANTI, Mich. (2006-05-30) – General Motors announced today it will invest $125 million in its GM Powertrain Ypsilanti Transmission Operations (YTO) facility for additional capacity to produce a family of Hydra-Matic six-speed rear-, and all-wheel drive automatic transmissions for GM’s cars, trucks and SUVs. GM will invest another $45 million for vendor tooling, containers and investment at other locations necessary to support the expanded Ypsilanti operations.
At YTO, the investment will help transition hourly and salaried employees from four-speed to six-speed transmission production. It includes partial facility renovation, new machinery, equipment and tooling to support the new processes.

Six-speed transmissions are gaining market popularity because they help save fuel while also improving acceleration performance. The six-speed automatic enables a reduced engine rpm at highway cruising speeds, which reduces engine wear and noise, and improves fuel economy. GM is launching new six-speed automatic transmission variants for front-, rear- and all-wheel-drive applications in nearly 40 global GM models in 2006 and 2007. By 2010, GM will have introduced 10 new variants of six-speed automatic transmissions and produced as many as three million six-speeds annually.

“The six-speed automatic is a best-of-both-worlds scenario, delivering great fuel economy and improved performance,” said John Buttermore, GM Powertrain vice president of manufacturing. “It is almost like having two transmissions in one – the high numerical first gear provides tremendous off-the-line acceleration, but the transmission is able to use the six gears to evenly distribute the torque and settle at an overdrive gear that helps deliver great fuel economy.

“On behalf of GM, I commend the United Auto Workers, UAW Local 735, and local and state leaders for helping to provide the business case and securing the necessary incentives to support this investment in six-speed transmission production.”

“This new investment in the Ypsilanti powertrain facility demonstrates GM’s confidence that UAW Local 735 members build a world-class quality six-speed RWD transmission,” said Richard Shoemaker, UAW vice president and director of the GM Department.

“Six speed transmissions improve fuel economy and engine performance, and we’re pleased that UAW Local 735 members will be expanding production of these important components for GM cars and trucks.”

In 2005, Ypsilanti Transmission Operations began production of the Hydra-Matic 6L80 six-speed transmission, the result of a $300-million investment announced in 2003. Additional capacity was added by a $152-million investment in 2005. Both of these investments were made possible by local and state incentives.

The Hydra-Matic 6L50 from Ypsilanti Transmission Operations will debut in certain 2007 Cadillac STS rear- and all-wheel drive performance sedans and the V8-powered SRX crossover SUV. The 6L50 also uses the Driver Shift Control feature, which allows the driver to shift the transmission like a clutchless manual gearbox.

“Technology is the driving force of Michigan ’s automotive future,” Governor Jennifer M. Granholm said. “We are pleased to have worked closely with General Motors to bring this very high-tech development to Michigan and retain jobs in Ypsilanti.”

“From both a social and an economic standpoint, Ypsilanti Transmission Operations is a vitally important part of our community, and we were pleased to support the incentives necessary for preserving jobs and making the plant competitive for future production,” said Ypsilanti Township Supervisor Ruth Ann Jamnick. “This cooperation benefits GM and the YTO workforce, as well as the citizens of Ypsilanti Township.”

Kingsley P. Wootton, GM Powertrain Ypsilanti Transmission Operations plant manager, said the investment helps ensure that the plant will continue to be an important part of the community. “Our strong partnership with the UAW and Local 735 resulted in an innovative work agreement that helped usher in a new era of competitively produced world-class six-speed transmissions.”

“A new team concept arrangement was developed for six-speed production, which includes hourly members of UAW Local 735 and salaried employees. The team concept includes cohesive teams of four to six members, with a designated leader that assists the team, ensuring an efficient operation. Team members work with engineering personnel to provide input on product design and its impact on manufacturing, with a goal of ‘zero defects.’ A heightened safety initiative, with a workplace goal of ‘zero incidents,’ is also included in the team concept arrangement.”

The historic Willow Run/Ypsilanti Transmission Operations facility produced planes during World War II. It was converted to a dedicated transmission plant in 1953, after a fire destroyed another transmission facility in Livonia , Mich. The 4.8 million-square-foot facility employs 3,600 hourly and salaried employees.

General Motors Corp. (NYSE: GM), the world’s largest automaker, has been the global industry sales leader for 75 years. Founded in 1908, GM today employs about 327,000 people around the world. With global headquarters in Detroit , GM manufactures its cars and trucks in 33 countries. In 2005, 9.17 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM operates one of the world’s leading finance companies. More information on GM can be found at www.gm.com .


Source: GM Powertrain Communications

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