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May 29, 2009

GM to Build New Small Car at Idle U.S. Plant and Not China

Faced with heavy criticism after it was revealed that it was planning to increase vehicle imports from lower-wage economies such as Mexico and China, General Motors announced on Friday plans to build a future small car in the U.S. utilizing an idled UAW-GM facility. The automaker's vague press release does not give out any details on the car (though everything points towards the 2011 Chevy Spark) nor the location of the plant with GM saying that the selection of the site "will be determined in the future". However, the carmaker did note that the re-tooled factory will be capable of building around 160,000 cars annually, which can be a combination of both small and compact vehicles.

2011 Chevrolet Spark - CarscoopAccording to General Motors, the introduction of the small car will boost the company's percentage of U.S.-built cars and trucks sold in the States from about 67 percent today, to beyond 70 percent by 2013.

"Small cars represent one of the fastest growing segments in both the U.S. and around the world," said Fritz Henderson, General Motors President and CEO. "We believe this car will be a winner with our current and future customers in the U.S."

"I would like to personally thank the UAW for agreeing to work with us to ensure our overall manufacturing competitiveness in the United States. It takes a special effort by everyone to bring a domestically produced small car to market in a cost-competitive and profitable way - but that is what we are going to do together," Henderson added.

2011 Chevrolet Spark - Carscoop
2011 Chevrolet Spark - Carscoop
2011 Chevrolet Spark - Carscoop