General Motors Investing $63M in Saginaw, Mich. Plant

[NINETY_EIGHT_REGENCY]

General Motors Investing $63M in Plant
Associated Press 05.15.07, 1:35 PM ET


Auto maker General Motors Corp. said Tuesday it will invest $63 million to renovate its Saginaw, Mich. casting plant, including installing new tools and machinery that can create cylinder heads for 3.6 liter high-feature V-6 engines using a new semi-permanent mold process.

The project will require about 130 hourly workers.

The Saginaw facility is General Motors (nyse: GM - news - people )' largest aluminum producing plant with 924 hourly and 167 salaried employees.

Construction is expected to start in spring 2009, with completion set for January 2011.

Shares of General Motors added $1.31, or 4.3 percent, to $31.93 in afternoon trading. The stock has been trading in a 52-week range of $23.71 to $37.24. Earlier Tuesday, a Lehman Brothers (nyse: LEH - news - people ) analyst lifted his rating on the stock, saying the sale of Chrysler to private equity investors, along with GM's disappointing first-quarter results, could bode well for the nation's largest carmaker in its upcoming labor negotiations.

http://www.forbes.com/feeds/ap/2007/...ap3723376.html

[chevydlrmn]

looks as if the 3.6HF if the main engine of the future for GM so, Let er buck! Keep improving it.

[spaz]

Originally Posted by chevydlrmn

looks as if the 3.6HF if the main engine of the future for GM so, Let er buck! Keep improving it.

yea i was about to say the same thing. looks like this is going to be like the 3800, finding its way into nearly every GM vehicle FWD or RWD. Could it be that this decision is the result of the new fuel economy regs, and the upcoming Zeta cars? im beginning to think that a v8 powered zeta sedan will not be as common as we may have originally expected though, but the 3.6 HF has quickly created an excellent reputation for itself in power, torque, smoothness, and reliability.

[redimpss5]

Upgrades are good. It show's GM is serious about being a better product.

[mikmak]

I like that the commitment is to a HFV6 plant, as it ensures that it will be developed to a significantly higher standard. Although it was a major step up from the 3800, it still needs some work in the refinement area (for Caddy applications) and definitely needs more torque.

It was interesting to note that even though GM had a poor first quarter, the sale of Chrysler to a private equity group has increased GMs share price. So there is speculation that this evidence is going to provide leverage in upcoming union negotiations, but really it's a matter of how you present the data at the table. A private equity group wouldn't buy Chrysler if they didn't think there was opportunity to cut dollars here and there. It's every enthusiasts nightmare when their marque is taken over by bean counters, as you can bet that passion is on the way out. Considering that GM is injecting passion where needed, you would think that would bode well for GMs future prospects. That of course would rely on consumers purchasing based on desirability, but I think that wil become a major consideration in the near future as ppl are forced out of their SUVs and large trucks.
NA at least, is on the cusp of another major industry shift.

[goblue1999]

Originally Posted by mikmak

I like that the commitment is to a HFV6 plant, as it ensures that it will be developed to a significantly higher standard. Although it was a major step up from the 3800, it still needs some work in the refinement area (for Caddy applications) and definitely needs more torque.

It was interesting to note that even though GM had a poor first quarter, the sale of Chrysler to a private equity group has increased GMs share price. So there is speculation that this evidence is going to provide leverage in upcoming union negotiations, but really it's a matter of how you present the data at the table. A private equity group wouldn't buy Chrysler if they didn't think there was opportunity to cut dollars here and there. It's every enthusiasts nightmare when their marque is taken over by bean counters, as you can bet that passion is on the way out. Considering that GM is injecting passion where needed, you would think that would bode well for GMs future prospects. That of course would rely on consumers purchasing based on desirability, but I think that wil become a major consideration in the near future as ppl are forced out of their SUVs and large trucks.
NA at least, is on the cusp of another major industry shift.

While a number of people have chosen large SUVs and trucks because of their spaciousness and elevated driving position, some of us still buy them for their capability, which includes hauling many kiddies and boats. I will not be "forced" out of my suv, bring on the $4 gas.

[GMsElite]

It's good to see GM investing in my home town!! I hear this makes Saginaw Metal Castings the largest GM factory producing aluminum cyclinder heads.

[elderon]

Saginaw is my home town!!! GOD we need this so bad its not even funny.

[bcjohnso99]

Nissan can stuff their great VQ engine in inexpensive cars like the Altima because costs have been reduced though high volume production (and it does not seem to have hurt Infiniti's sales). This is exactly what GM should do with the 3.6HF (and 2.8HF) and dump the OHV V6 engines - would be a great boost to GM's image.

Now, about those 4-spd autos...

[minnfang]

Originally Posted by spaz

yea i was about to say the same thing. looks like this is going to be like the 3800, finding its way into nearly every GM vehicle FWD or RWD. Could it be that this decision is the result of the new fuel economy regs, and the upcoming Zeta cars? im beginning to think that a v8 powered zeta sedan will not be as common as we may have originally expected though, but the 3.6 HF has quickly created an excellent reputation for itself in power, torque, smoothness, and reliability.

The HF 3.6 is a great engine, but part of me hates to see the pushrod engines fade away. The 3.5VVT engine in the Aura actually gets better gas mileage than the 3.6 (and that's with the "crappy" 4-speed auto). It also has plenty of power for most people and is kind of "rough" only when you are wringing its neck. The pushrod engines are also cheaper to build and are more compact.

As a father who buys older cars for kids - I can also imagine that typical repair bills will be much higher on OHC engines (we can now start paying "import" prices for parts and repairs). I also wonder if the HF 3.6 and similar OHC engines will be considered "disposable" by a lot of rebuilders, just like the Northstar engines.

Just pondering the whole situation...

[Geotpf]

Originally Posted by bcjohnso99

Nissan can stuff their great VQ engine in inexpensive cars like the Altima because costs have been reduced though high volume production (and it does not seem to have hurt Infiniti's sales). This is exactly what GM should do with the 3.6HF (and 2.8HF) and dump the OHV V6 engines - would be a great boost to GM's image.

Now, about those 4-spd autos...

It makes sense to make as few different engines as possible. If one engine can be used in many different applications, that's very good.

[thebuickguy]

yes dump the ohv v6 motors because the VVT gets such great gas milage

3.8 200 hp 230 ft tq with 4 speed 20 city 30 highway buick lacrosse

3.6 252 hp 251 ft tq with 6 speed 20 city 28 highway pontiac g6

GM should have invested in a series 4 3800 but thats my opinion

[steverino]

Why is it starting 2 yrs from now and why does it take 2 yrs to complete, seems like a long time to me.

[jae1987]

GM actually has a soul. Reinvent a plant instead of padlocking the doors and moving south of the border.

[383_torque]

Just wondering,

Will the 3.6 fit in the Colorado?