GM Will Build New Yet-to-be Revealed Subcompact Car in Michigan, Hopes to Sell More Than 100,000 Annually
On Friday, GM announced that it had chosen an Orion Township Michigan assembly plant as the location it would build a new upcoming subcompact car. Stamping for the car would be done in Pontiac Michigan. The move takes this future vehilce away from China where it was originally planned to be built. The move stateside was a concession to the UAW for its agreement to exchange its debt for equity. 67% of GM’s vehicles are built in the states, and shipping one from China adds $850 to its cost.
“Small cars represent one of the fastest-growing segments in both the U.S. and around the world,” said Troy Clarke, president of General Motors North America. “ GM will be the only automaker, foreign or domestic, to build small cars in the U.S . , and we believe Orion Assembly and Pontiac Stamping are well suited to deliver a high-quality, fuel-efficient car that competes with anything in the marketplace.”
Clark said the new subcompact also known as a B-class vehicle would not be the Chevrolet Spark that most had speculated, calling it instead, “a yet-to-be announced product.” The current Aveo which is slated to be discontinued is GM’s current B-class car. Some speculate the Chevy Viva will be the new car.
“We’re thinking the B-car will sell north of 100,000 vehicles,” said Clarke, though he acknowledged only about 40,000 Aveos are sold yearly now. “We’re thinking this segment will grow because of higher fuel prices as well as the attractiveness and utility of the vehicle.”
There are no indications the car will be a hybrid though GM says the car “will add to the automaker’s growing portfolio of U.S.-built, highly fuel-efficient cars, including the Chevrolet Cruze and Volt.”
Production will begin in 2011 and 1400 jobs will be restored by this plan.
Source (GM)
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