Missouri Feels Optimistic Over Potential $1B General Motors Investment
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General Motors reportedly has $1 billion ready to sink into a production plant somewhere, for something. Missouri, naturally, wants that investment to secure employment at the Wentzville assembly plant and perhaps create new jobs while protecting the state’s supplier base.
A new report claims Missouri state officials feel pretty good about where they stand with GM and the possible investment. According to Missourinet.com, the State Department of Economic Development has discussions with GM every day. The department’s director, Rob Dixon, said he’s “very optimistic,” but discussions haven’t reached a finalizing point.
He said he expects GM to have a final decision very soon.
So far, we’re still in the dark over what the massive investment revolves around. GM has said on the record that it’s shopping other states for the investment as well. That leads us to believe this investment isn’t tied to commercial vans of mid-size pickup trucks. The Wentzville plant currently builds the Chevrolet Colorado, GMC Canyon, Chevrolet Express, and GMC Savana. With a background in commercial vehicles and trucks, it’s easy to assume this has something to do with a utility vehicle. GM also has plans for plenty of new electric cars, and this massive investment could have something to do with that, too.
In an effort to make Missouri even more attractive, the state recently passed legislation that provides GM with $5 million in tax credits over 10 years, for a total of $50 million in tax breaks. That catch is GM must invest at least $750 million in the state.
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Source: Missourinet.com
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The rumor I’ve heard from other GM employees is that there are considerations for building a new off-road SUV to compete with the Bronco and Wrangler, much like the overseas body-on-frame Trailblazer. My understanding is that it would be based on the next-gen Colorado, which itself will be on a smaller version of the T1XX architecture.
If an SUV is built at Wentzville, the van will probably be displaced.
If that happens the vans probably be built at the JV International plant along with the cutaways.
I don’t know, the van is potentially a 150-200K unit a year project. That may be too much for International/Navistar to handle.
If that’s the case probably some vans will go to International while a smaller van production stays in MO with the Midsize trucks and new SUV.
I bet navastar gets the vans
I understand the vans are due for a major redesign in 2022. If that design means more configurations, it may mean this expansion at Wentzville us for that or the van may need a dedicated plant of its own. Either way this may be a carrot for the UAW negotiations this fall.
This case is a perfect example of timing, contracts and local support.
You have a plant with a product coming for a change. The Vans are being sent to another plant with a redesign.
The present model truck is go8ng to a new platform that it will share with a new product like a SUV.
The local government has shown support to retain the plant with tax breaks.
The union can see if the cooperate they can be assured of jobs with a strong line of products over a continued product cycle.
GM has already shown they are willing to put money into this plant to convert it and replace the very old paint shop.
Now it comes down to negotiations with the union and it should go smoothly.
This has been in the works for a while as deals like this do not come together overnight. Much of it came to light as negotiations started
This is only one chip in the game and we will see others played soon. Some may not be as big but they all come together at contract time.
Navistar already builds the cut-away van chassis, I hear they would like to get more GM work.
Oshawa gets my vote for investment
I think a bit clue in who gets what has to do with when the Wentzville project was proposed within GM, and when the SUV was considered for production and sale in the US. It seems to me was a recent addition to GM’s future portfolio. If that is the case, Wentzville could very well continue building vans and midsize trucks and the SUV could be build elsewhere.