Winehole23
06-26-2009, 01:39 PM
GM to Build Small Cars in Michigan (http://online.wsj.com/article/SB124603893635461995.html)
By TESS STYNES (http://online.wsj.com/search/search_center.html?KEYWORDS=TESS+STYNES&ARTICLESEARCHQUERY_PARSER=bylineAND)
¶ General Motors Corp. chose two sites in Michigan to build small, fuel-efficient cars, and is in negotiations with state and local government officials about economic incentives.
¶ The auto maker, which is undergoing reorganization in bankruptcy court, had considered sites in Michigan, Tennessee and Wisconsin. The U.S. government is slated to own 60% of the company after it emerges from bankruptcy.
¶ GM selected an assembly plant in Orion Township, Mich., and a metal-stamping facility in Pontiac, Mich., which are projected to employ about 1,400 workers if an agreement is reached.
¶ The plans fall under a tentative deal GM reached in April with the United Auto Workers. The union agreed to concessions that will allow GM to turn a profit on the vehicle, something that previously had been difficult in the U.S. with small cars because of relatively high labor costs. In return, GM agreed to build the model in the U.S. rather than China as originally planned.
¶ The Orion assembly plant is expected to turn out a combined 160,000 small and compact vehicles a year. While a final decision hasn't been made on timing, retooling of the plants could begin late next year, with production starting in 2011, the company said.
¶ GM plans to spend upwards of $700 million to produce the vehicles.
¶ Two other GM sites, in Spring Hill, Tenn., and Janesville, Wis., also were considered. The Spring Hill plant may be used if demand requires extra capacity, GM said.
Chrysler LLC, which also reorganized in bankruptcy, has merged its assets with Italian auto maker Fiat (http://online.wsj.com/public/quotes/main.html?type=djn&symbol=fiaty) SpA, which plans to make more small cars for the U.S. market as part of their combination.
By TESS STYNES (http://online.wsj.com/search/search_center.html?KEYWORDS=TESS+STYNES&ARTICLESEARCHQUERY_PARSER=bylineAND)
¶ General Motors Corp. chose two sites in Michigan to build small, fuel-efficient cars, and is in negotiations with state and local government officials about economic incentives.
¶ The auto maker, which is undergoing reorganization in bankruptcy court, had considered sites in Michigan, Tennessee and Wisconsin. The U.S. government is slated to own 60% of the company after it emerges from bankruptcy.
¶ GM selected an assembly plant in Orion Township, Mich., and a metal-stamping facility in Pontiac, Mich., which are projected to employ about 1,400 workers if an agreement is reached.
¶ The plans fall under a tentative deal GM reached in April with the United Auto Workers. The union agreed to concessions that will allow GM to turn a profit on the vehicle, something that previously had been difficult in the U.S. with small cars because of relatively high labor costs. In return, GM agreed to build the model in the U.S. rather than China as originally planned.
¶ The Orion assembly plant is expected to turn out a combined 160,000 small and compact vehicles a year. While a final decision hasn't been made on timing, retooling of the plants could begin late next year, with production starting in 2011, the company said.
¶ GM plans to spend upwards of $700 million to produce the vehicles.
¶ Two other GM sites, in Spring Hill, Tenn., and Janesville, Wis., also were considered. The Spring Hill plant may be used if demand requires extra capacity, GM said.
Chrysler LLC, which also reorganized in bankruptcy, has merged its assets with Italian auto maker Fiat (http://online.wsj.com/public/quotes/main.html?type=djn&symbol=fiaty) SpA, which plans to make more small cars for the U.S. market as part of their combination.