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GM Plans To Build Future Small Car In US

General Motors plans to build a future small car in the United States utilizing an idled UAW-GM facility. This vehicle will adds to GM’s growing portfolio of US-built, highly fuel efficient cars including the Chevrolet Cruze and Volt.

Small cars represent one of the fastest growing segments in both the US and around the world. We believe this car will be a winner with our current and future customers in the US. I would like to personally thank the UAW for agreeing to work with us to ensure our overall manufacturing competitiveness in the United States. This vehicle segment, while important today and expected to be more so in the future, is extremely challenging. 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.

—Fritz Henderson, General Motors President and CEO

The re-tooled plant will be capable of building 160,000 cars annually, which can be a combination of both small and compact vehicles. Selection of the site will be determined in the future.

Currently, about 67% of GM cars and trucks sold in the US are built in the US. With this announcement, GM anticipates that US production levels will increase beyond 70% by 2013.

Comments

SJC

I see no reason why GM could not build small cars in the U.S. With good operations planning and automation, they could produce a fine product at a good price.

Peter9909

It's really sad that it's news that an American car company plans to build American cars in America. We're bailing them out. I certainly hope they plan to build cars here and not in China. Why on earth would I buy a Chinese-built GM over a US-built Toyota or my Mexican-built VW Jetta?

SJC

People consider where they are built, but that is not the major factor. A Fusion is built in Mexico. Do people not buy them here because they are not built here? I don't think so.

Maybe this will become a more important factor in years to come, but up until now it did not seem to be a big deal. Making the cars in the country where they are sold makes sense, but buyers have not made it a priority.

dursun

Golly GM is so generous. Maybe they can even pay back the $10 billion in taxpayer money they pissed away.

danm

I want to see GM survive but am i jaded to think this is just politics...trying to curry favor with the public?

ToppaTom

I thought this was great news at first.

But then my search for the last time any US auto maker ever said they were going to build cars people did NOT want, turned up nothing.

Could not even find it for foreign auto makers.

But we actually ARE getting something for our $50 billion.

The UAW is going to reduce their own workers compensation to match Toyota, Nissan and Honda.

Maybe the bankruptcy brought that - the $50B only delayed it.

Roger Pham

Thank you, GM, for being so thoughtful!
Perhaps other MFG's will follow suit, to increase manufacturing in the USA.

jimfromthefoothills

The American manufacturers should push legislators for an American Kei car. This market segment is 1/3 of the Japanese market and it is an innovation catalyst for the Japanese car industry.

poor old toppatom is still pushing for hummers built by slaves. Hey toppatom, instead of looking at rush limbaugh's website for research, go to a university library and search peer reviewed articles. That is what the GCC editor does. I appreciate that you want to come onto this website to learn, but you must open your mind to new ideas.

Car manufacturing and economic development should not be about ideology.

ToppaTom


Kei cars constitute less than 1/4 of Japan’s market per Rush’s website http://www.greencarcongress.com/2009/05/japan-april-20090530.html#more

US auto makers would be never push legislators to mandate such a foolish thing.
That would result in a mass importation Asian minicars.

jimfromthefoothills

poor old toppa tom.

The GCC article cited Manufactured in Japan, not sold in Japan. Look at the JAMA website that GCC cited http://www.jama-english.jp/statistics/production_export/2009/090529.html Read more carefully next time! I do appreciate that you cited a good source though. I can see your effort to learn.

They sold 236k cars in Japan in April... about 100k were Kei cars. Get out your slide ruler and try to calc that % yourself... it is more than 25% ;)

Is there any reason we can not manufacture small cars in the US? And from a normative economic policy standpoint, small kei cars would benefit everyone in the country... except old toppa tom and his hero rush limbaugh.

Alex Kovnat

One of our participants writes:

>Making the cars in the country where they
>are sold makes sense, but buyers have not
>made it a priority.

Wow. We are told the world is coming to an end from global warming, we are told that without doubled roof crush strength, rollover accidents will kill us all. And now we're told that in addition to ever more stringent safety and fuel economy requirements, we should further constrict our choices to only cars built in the USA. How many constrictions on our freedom of choice can we stand already?

ToppaTom

Of course the GCC article cited MANUFATURED in Japan, not SOLD in Japan.

Do you expect to save the US auto industry with cars NOT made in the US?

jimfromthefoothills

Please re read the posts toppatom, I advocate a change in the law that would allow US manufacturers to build small vehicles.

My point was that Japanese manufacturers had a big advantage because they own a segment (roughly 35%) of their local market. Furthermore these small cars spur innovation and brand loyalty, something US manufacturers need badly. When was the last time the US companies could dream about owning a segment.

You missed the point and incorrectly cited "Kei cars constitute less than 1/4 of Japan’s market per Rush’s website http://www.greencarcongress.com/2009/05/japan-april-20090530.html#more" toppatom 5 hours ago.

Come on toppatom, you visit a site called GREENcarcongress, i think inside you must secretly be a hemp mumu wearing hippie... come on over to our side and advocate for thriftiness...

SJC

"..to only cars built in the USA.."

I never said this. I said that buyers have not made it a priority. There is a big difference. My statement is supported by the increasing number of foreign cars selling in the U.S. The point was that it does not seem to matter to the buyer and I think the facts support that claim.

ToppaTom

SJC did not say that.

Meanwhile, I have mixed emotions about “buy” campaigns.

They typically urge purchase, based on aspects other than value.

Even though I wish people would “Buy American”, but I am also proud that our culture is not xenophobic in this regard.

However since we buy Chinese goods and might well buy products from North Korea (if they exported any) I think we might not be so noble; this issue is more complex.

Buy campaigns can also advocate the common good – i.e. fuel efficient and smaller cars.

These are almost wholly honorable, unfortunately they don’t fare too well either.

Roger Pham

Whether or not to increase purchase of USA-made goods is simply a matter of arithmatics:

--If there is a trade surplus, buy less USA-made goods...to make our trade partners happy.

--However, if there is a trade deficit, year after year, then each US Citizen should promote and buy increasing amount of USA-made goods and services, for selfish reason no other than self-preservation...until a balance in foreign trades will occur.

Similar issues with environmental protection and control of global warming...just a matter of self-preservation and sustainability.

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