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DETROIT -- General Motors Co. on Tuesday is expected to announce it will spend $260 million to start building fuel-efficient, eight-speed transmissions at its Toledo transmission plant, according to media reports today.

The plant will add as many as 400 jobs and production of the transmissions is to start late next year, according to The Blade newspaper of Toledo, Ohio, and the Associated Press.

GM CEO Dan Akerson is expected to make the announcement at the plant. Ohio Gov. John Kasich, UAW Vice President Joe Ashton and other GM and government officials also are scheduled to attend the 1:30 p.m. event.

GM declined to comment on the planned announcement. The new workers would be paid $14 an hour, about half of what veteran employees make, the AP reported.

GM does not build noncommercial vehicles with eight-speed transmissions, but the company unveiled a prototype for the eight-speed electric hybrid Buick Enclave last month at the Shanghai auto show.

The Toledo plant produces the Hydra-matic 6L80 rear-wheel-drive six-speed transmission used in the Chevrolet Corvette and the Cadillac Escalade, and the global front-wheel-drive six-speed used in the Chevrolet Cruze and Malibu.

It is unclear which vehicles will get the new eight-speed transmission, or whether the transmission will be fwd or rwd.

In February 2006, GM spent $540 million on the plant to build the six-speed rwd transmission. In May 2007, the company spent $332 million on the factory to build the six-speed fwd transmission.


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