General Motors investing $48M in Bedford, Ind., plant

General Motors announced June 5 that it is investing $48 million in its GM Powertrain Bedford (Ind.) Foundry to produce six-speed transmission cases and converter housings for GM’s growing family of six-speed transmissions.

The investment, partly made possible with local incentives, will help transition hourly and salaried employees to the expanded work. The investment covers partial facility renovation, including more energy-efficient melting furnaces; as well as new machinery, equipment and tooling to support the additional volume. The Bedford Foundry, an aluminum-melting, die-casting and permanent mold facility, produces transmission cases and converter housings for GM Powertrain six-speed transmission facilities in Ypsilanti and Warren, Mich., and in Toledo Ohio, which are ramping up six-speed transmission production. Bedford also produces transmission castings, pistons and engine blocks for other GM Powertrain facilities.

Several GM retirees who were part of the original GMPT Bedford work force when it opened in 1943 were on hand for the announcement.

Facility renovations are set to begin in July. Increased production of rear-wheel drive six-speed cases is already under way, and production will begin on front-wheel drive six-speed cases later this year. Full volume for both RWD and FWD cases is expected by late 2008.

Six-speed transmissions are gaining market popularity because they help save fuel and can help improve acceleration performance. The six-speed automatic enables a reduced engine rpm at highway cruising speeds, which reduces noise and engine wear, and improves fuel economy. New six-speed automatic transmission variants for front-, rear- and all-wheel-drive applications are launching in nearly 40 global GM models in 2006 and 2007. By 2010, GM will introduce 3 million six-speed transmissions a year, encompassing 10 variants.

“The six-speed automatic is a best-of-both-worlds scenario, delivering great performance and enabling improved fuel economy,” 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 partners including the United Auto Workers; UAW Local 440; the International Brotherhood of Electrical Workers; IBEW Local 16; and local and state leaders for helping to provide the business case and securing the necessary incentives to support this investment.”

“This investment reaffirms GM’s confidence in our workforce and its commitment to delivering fuel-efficient vehicles using technologically advanced components from UAW-represented facilities,” said Richard Shoemaker, UAW vice president and director of GM department.

“GM Powertrain’s investment of $48 million in new manufacturing equipment, tooling and facility upgrades is great news for UAW Local 440 members, and for the entire Bedford community and state of Indiana,” said UAW Region 3 director Terry Thurman.

“Our membership is pleased that GM has chosen to invest in the Bedford facility,” said Paul Green, business manager of IBEW Local 16. “We believe the investment reflects our members’ hard work and partnership commitment.”

The rear-drive transmission cases produced in Bedford will be used in the Hydra-Matic 6L80 and 6L50 six-speed transmissions currently being produced by GM Powertrain’s Ypsilanti (Mich.) Transmission Operations and in future six-speed operations at the Toledo (Ohio) Transmission facilities.

The 6L80 RWD six-speed automatic transmission is tailored for the heavy-duty requirements of SUVs and trucks, and is offered on GM’s 2007 full-size SUVs equipped with the Vortec 6.2L V-8, such as the GMC Yukon Denali and Cadillac Escalade.

The 6L50 will debut in certain 2007 Cadillac STS rear-and all-wheel drive performance sedans and the V-8 powered SRX crossover SUV. In all applications, the Hydra-Matic six-speed has a wide, 6.04:1 overall ratio that helps deliver up to 7 percent improved zero-to-60 mph performance and up to 4 percent improved fuel economy.

The front- and all-wheel drive transmission cases produced in Bedford will be used in the Hydra-Matic 6T70 and 6T75 six-speed transmissions produced by the GM Powertrain Warren ( Mich.) transmission plant. The 6T70 debuts on the Saturn Aura and on a Pontiac G6 model. The 6T75 will be offered on the Saturn Outlook, GMC Acadia and Buick Enclave.

John Lancaster, Bedford plant manager, said the investment helps ensure that the plant will remain an important economic and social force in the community.

“Our presence means that we will continue to be a major source of property and payroll taxes; and that the plant, our employees and our union partners can continue their many charitable activities," he said. "It continues to be an honor to lead such a team. Bedford people continue to rise to whatever challenge placed before them. I am excited to see what together we can accomplish.”

The 915,000-square-foot GM Powertrain Bedford Foundry employs 770 hourly and salaried employees. The foundry got its start in 1942 in an abandoned stone mill and opened in 1943. It was converted to an aluminum casting plant to manufacture aircraft parts during World War II.