GM to move Cadillac SRX production from Mexico to U.S.

General Motors announced on Tuesday that it will bring production of the next generation of the Cadillac SRX SUV — the brand's best-selling vehicle — to Spring Hill, Tenn., from its current site in Mexico.

More immediately, GM said it will invest $185 million at the Spring Hill complex to make small-displacement gasoline engines to meet tougher fuel-economy regulations. And the company announced it will invest $48.4 million in its Bedford, Ind., factory that makes transmission components and engine blocks.

GM said the Spring Hill engine investment will save 390 jobs; The Bedford investment should create or save 45 jobs.

The new line of Ecotec small engines to be made at Spring HIll displace 1 liter to 1.5 liters and are meant for GM's high-volume small cars and compact SUVs, not for the midsize SRX coming later. The fuel-efficient three- and four-cylinder powerplants will be made globally in five countries and will be used in 27 models sold by five GM brands by model-year 2017. The company said there will be 11 variations of the engines, some turbocharged, and they will range from 75 to 165 horsepower.

SRX is the first one named of the two midsize vehicles GM previous announced it would build at Spring Hill as part of a $350 million investment there that will create or save 1,800 jobs. The second is still to be named.

SRX made its debut September 2003 as an 2004 model at a time when all the luxury brands were moving — very successfully — to crossover SUVs. Most-recent update was to the 2012 model.

Cadillac forecast a modest annual sales of 25,000 at launch, but nowadays, despite the vehicle's age, SRX is selling twice that many. Benchmark in the category is the Lexus RX. Caddy sells about 60% as many SRXs as Lexus does RXs.

Production of the new-generation SRX is expected top begin at Spring Hill very late in 2015, and the vehicle is to go on sale early 2016 as a 2017 model.

Spring Hill was completed in 1988 and in 1989 built its first of GM's ill-fated Saturn small cars that the automaker sold via no-haggle pricing and hoped to draw Asian-import buyers to GM. The brand was one of several axed as a result of GM's bankruptcy reorganization in 2009. Others: Pontiac, Saab, Hummer.

Spring Hill built the Chevrolet Traverse crossover SUV in 2008 and 2009. It currently makes some Chevrolet Equinox SUVs, and manufactures 2-liter turbocharged, 2.4-liter and 2.5-liter four-cylinder engines for use in GM models sold globally. The complex also has a stamping plant and painting and plastic molding facilities.

Spring Hill, which currently has about 1,575 workers, closed for nearly two years after GM's bankruptcy reorganization. GM agreed to reopen the complex following negotiations with the United Auto Workers union and did so in 2011.