GM adding supplier part to Arlington, Texas SUV plant

GM adding supplier part to Arlington, Texas SUV plant

Having suppliers adjacent to production lowers transportation costs, boosts part quality.

Assembly Cars/Light trucks Manufacturing

Arlington, Texas – General Motors plans to open a supplier park to support future vehicle production at its Arlington Assembly, the Dallas-area plant that makes the automakers largest sport utility vehicles – the Chevrolet Tahoe and Suburban, Cadillac Escalade, and GMC Yukon.

The 1,250-job park is expected to bring more than 850 new jobs to Arlington, Texas. Those jobs are not part of GM’s previously announced 7,000-job, $1 billion series of investments in U.S. facilities. The park is expected to be operational in 2018.

The supplier park will include two industrial manufacturing and warehouse buildings comprising more than 1.2 million square feet. GM estimates nearly 600 of the new manufacturing and professional jobs created in these facilities will replace work previously done outside of the U.S.

“Through strong supplier and community relations, we’re able create new supplier parks to generate significant benefits to our manufacturing operations and the communities in which we operate,” said Steve Kiefer, GM senior vice president of Global Purchasing and Supply Chain. “This new supplier park will create improved logistics efficiency and coordination, while also bringing significant employment opportunities to Arlington.”

GM currently employs approximately 4,225 people in Arlington and has been making vehicles there since 1954.

Longtime GM supplier, and winner of several of the automaker’s supplier awards, International Automotive Components (IAC) Group is one of the GM suppliers that will be introducing operations to the Arlington automotive logistics center. Steve Miller, president and CEO of IAC, said, “IAC’s role as a supplier of vehicle interiors to GM extends back almost a century and this impressive new center marks a great beginning to our next century in partnership with this customer.”

GM has been executing a strategy to create supplier parks adjacent to its U.S. manufacturing sites (already accomplished with Northpoint at GM’s Fairfax Assembly Plant in Kansas, Wentzville Assembly Plant in Missouri, Bowling Green Assembly in Kentucky, and Fort Wayne Assembly Plant in Indiana), and will continue to expand this effort.

Supplier parks locating near assembly plants result in significant savings from reduced transportation costs, higher quality communications and continuous improvement activities.