General Motors is investing $208
million in the Fairfax Assembly plant in Kansas City, Kan., to
prepare the facility for production of the all-new 2008 Chevrolet Malibu.
The investment covers expansion of
the plant’s body shop and the purchase of equipment needed to make the new
Malibu. The
plant currently builds the Malibu, Malibu MAXX and Saturn Aura, with a
Hybrid Saturn Aura scheduled for release in early 2007.
The announcement was made at the
plant December 18 during a ceremony that included representatives from GM and
the United Auto Workers, Kansas Governor Kathleen Sebelius, U.S. Representative
Dennis Moore, Kansas City Mayor Joe Reardon and other elected officials.
“This investment is a testament to
the hard work of the Fairfax employees, the UAW, and local and state
elected officials to make the plant and business environment competitive,” said
Larry Zahner, GM North America manufacturing manager. “GM thanks Governor
Sebelius and the Unified Government for working tirelessly to make the State of
Kansas and Wyandotte County attractive to business
investments.”
Governor Sebelius led an effort to
eliminate the machinery and equipment tax, which will apply to new business
investments, such as the one occurring at Fairfax Assembly. Local and state
elected officials also were instrumental in securing additional incentives to
support the GM investment.
“This is an important step for GM to
level the playing field with its competitors in the United
States,” said Fairfax plant manager Paul Marr.
“It also demonstrates that when business, labor and government work together, we
can create an environment where manufacturing can thrive.”
Even with the incentives, Fairfax
Assembly will continue to pump millions of dollars into the local and state
economies, Marr said. The plant typically pays more than $11 million in real and
personal property taxes and the plant’s 2,900 employees receive more than $200
million in pay, much of it pumped into the local and state economies through
taxes and personal spending.
“This is a great confidence builder
for our members as we move into the next generation of building vehicles at
Fairfax Assembly,” said UAW Local 31 chairman John Melton. “This is a plus. The
future of Fairfax Assembly greatly impacts our community as members generously
contribute time and money to various schools, churches, charities and local
non-profit organizations.”
Each year, Fairfax employees
contribute nearly $700,000 to various charitable causes.
Fairfax employees have been honored
numerous times for their work, including first place in the entry mid-size cars
segment in the 2005 J.D. Power and Associates Initial Quality Study and a silver
medal in the 2006 Insurance Institute for Highway Safety “Top Safety Picks”
awards for the current Malibu. Additionally, both the 2007 Saturn Aura
and 2007 Chevy Malibu and Malibu MAXX received the highest safety rating from
the National Institute of Highway Safety.
With its current lineup, Fairfax is playing a
critical role in GM’s turnaround efforts, as well as increasing market share in
the mid-size car segment.
"The all-new 2008 Malibu builds on the success of the current model assembled
in Fairfax, and
we're proud to have these same employees building the new car with such a high
level of quality," said Ed Peper, Chevrolet general manager. "The 2008 Malibu
design brings new proportions and a fresh perspective to the mid-size car
market, and Fairfax employees are going to help us execute an upscale look and
feel with more premium materials and a new level of refinement in this extremely
competitive segment.”
The all-new Malibu, which will make its debut in January at the North
American International Auto Show in Detroit, will go on sale in the fourth quarter
of 2007. With its dual-port grille design, the 2008 Malibu represents the new
face of Chevrolet. It boasts a poised, wheels-at-the-corners stance with a
longer hood and shorter deck appearance that conveys motion, agility and
attitude. The new Malibu also features a number of striking and
progressive interiors that use premium materials to demonstrate quality and
value not seen before in this segment.