GM making $790 million investment at Tennessee factory

FILE - In this Monday, June 22, 2015, file photo, final trim is installed on a Buick Verano at the Orion Assembly in Orion Township, Mich. General Motors reports financial results Thursday, April 21, 2016. (AP Photo/Carlos Osorio, File)
photo Arvin Jones, General Motors North American manufacturing manager, right, is interviewed after an announcement Wednesday, April 27, 2016, in Spring Hill, Tenn., that General Motors will invest $790 million at its plant in Spring Hill and another $118 million in Bay City, Michigan. The company said it will create nearly 800 jobs at the plant south of Nashville as part of the new high-efficiency engine program at the factory. (AP Photo/Mark Humphrey)

SPRING HILL, Tenn. - General Motors is investing $790 million at its plant in Tennessee and another $118 million in Michigan.

The company said Wednesday that it will create nearly 800 jobs at the Spring Hill Manufacturing Plant as part of the new high-efficiency engine program and other modernization initiatives.

"This investment will position GM and its workforce as continued leaders in powertrain manufacturing," said Arvin Jones, GM North America Manufacturing Manager. "Today's announcement reinforces our absolute faith in this facility, and our strong commitment to this community and the state of Tennessee."

The automaker's 2015 contract with the United Auto Workers union said that Spring Hill would receive at least 700 new jobs as part of $1.9 billion in investments in U.S. facilities during the four-year agreement.

The Spring Hill complex south of Nashville has about 2,300 hourly employees, according to GM's website. It makes the new Cadillac XT5 midsize SUV and two four-cylinder engines. It will start producing the GMC Acadia midsize SUV later this spring.

The announcement brings GM's total investment in the Spring Hill plant in 2016 up to more than $936 million, including an expansion announced in February. The company has announced investments of over $2 billion for Spring Hill since 2010.

Tennessee Gov. Bill Haslam said GM is among more than 900 automotive-related companies operating in the Volunteer State, including the Volkswagen assembly plant in Chattanooga.

"Tennessee has an incredibly strong business climate, and we continue to attract investment from companies that can choose to do business anywhere in the world," Haslam said.