Tennessee Board Approves $35M Grant to Retrain GM’s Spring Hill Employees as Part of $2B Deal to Produce Electric Cadillac Vehicles

Editor’s Note: We keep asking ourselves this question… Is it the responsibility to invest in the education of employees of a private institution in making a product?

A state board on Tuesday approved a $35 million jobs training grant to encourage General Motors to retain workers at its Spring Hill plant as the company looks to invest approximately $2 billion to produce electric vehicles, including the Cadillac LYRIQ.

The State Funding Board approved the FastTrack Job Training Assistance Grant. More information is available here.

The grant will help retrain the 2,000 workers to produce the new electric vehicle (EV), according to State Funding Board documents.

Spring Hill will be GM’s third plant to manufacture electric vehicles, and the first outside of Michigan, the documents say. The state’s investment will allow the paint and body shops to experience major expansions. General assembly will receive upgrades including new machines, conveyors, controls and tooling. The plant is the company’s largest facility in North America.

State Funding Board documents say renovation and expansion work will begin immediately.

The Tennessee Star reported last month that GM will invest nearly $2 billion in the plant to produce fully electric vehicles, including the LYRIQ.

Maury County Mayor Andy Ogles told The Star that Maury County competed against another location — which he did not specify — for the $2 billion investment. He said the Spring Hill GM facility currently has 3,100 employees.

“It really puts Tennessee on the map as being one of the key locations for EV technology for North America. That is the real significance. A $2 billion investment. It’s the largest corporate expansion in Tennessee’s history,” Ogles said.

In addition to the new electric LYRIQ SUV, traditionally powered Cadillacs that include the XT6 and XT5 will continue to be assembled in Spring Hill, the State Funding Board documents say.

The average hourly wage for the 2,000 jobs will be $31.79.

GM’s employment in Tennessee produces a 6.8 employment multiplier, the Tennessee Department of Economic and Community Development said, citing the Center for Automotive Research. That means there are 5.8 other jobs in the Tennessee economy for every direct GM hourly and salaried job in the state.

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Jason M. Reynolds has more than 20 years’ experience as a journalist at outlets of all sizes.
Photo “Spring Hill GM Plant” by GM.

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