General Motors to invest $44 million in Indiana foundry

General Motors Corporation will invest $44 million in its Bedford (Ind.) Foundry to produce transmission cases and converter housings for GM's growing family of fuel-efficient, six-speed transmissions. The project will retain about 100 production jobs at the facility.

The investment includes plant renovation and installation of new die casting machines with an automated (robotic) casting processing cell for each machine. Construction and equipment orders will begin immediately, with machine installation beginning in June 2008. Full production targeted for December 2009.

The $44 million investment announced May 31 brings GM's total investments in the past year for the Bedford facility to $114 million.

"These investments would not be possible without the involvement of employees at this facility, who have dedicated themselves to improving the quality of our products and the efficiency of the operations here at the Bedford Foundry," said Arvin Jones, GM Powertrain manufacturing manager for castings and components. "Their efforts have contributed to GM's competitiveness and our transformation in North America."

The GM Powertrain Bedford plant management, United Auto Workers Local 440 and International Brotherhood of Electrical Workers Local 16 leadership successfully negotiated competitive operating agreements that improve operational effectiveness. The agreements also address processes and methods to improve safety of the operations and production quality.

Jones thanked members of UAW Local 440 and IBEW Local 16 as well as Indiana's leaders on the state and local levels – working together they were able to build a competitive business case to support this investment in Indiana.

"GM continues to make a significant commitment to Indiana. I commend them for choosing to invest in our state," said Indiana Lt. Governor Skillman. "This is good news for Hoosier workers and a testament to the great value of our highly skilled workforce and competitive business climate."

High pressure die casting is the most economical process for casting high-volume powertrain components. The process works by injecting molten aluminum into a water-cooled steel die with high pressure exerted by a metal plunger during solidification.

"Today marks an exciting new chapter in this plant's 64-year history of producing high quality castings and components for GM engines and transmissions," said John Lancaster, Bedford plant manager. "The credit goes to our employees who've established a culture of continuous improvement that helps secure our future in today's competitive global market."

GM's Powertrain Bedford Foundry is an aluminum melting, die casting and permanent mold facility that has been a proud part of the Bedford community since 1943. The plant currently employs 544 hourly and 115 salaried workers and has an annual payroll of approximately $58 million. Castings produced at the plant include: transmission cases and converter housings for GM's four-speed and six-speed transmissions; pistons for the Vortec 4.8-liter and 5.3-liter V-8 engines that power GM's full-size SUVs and pickups marketed under the Chevrolet Tahoe and Silverado and GMC Yukon and Sierra brands; and engine blocks for GM's Northstar 4.6-liter V-8 engines that power the Cadillac DTS, XLR and STS luxury cars. On a daily average, the plant manufactures 10,000 transmission cases and converter housings, 34,000 pistons and 350 engine blocks.