UPDATE: GM Plans To Build Small Car At An Idled US Plant
29 Mai 2009 - 6:07PM
Dow Jones News
General Motors Corp. (GM), days from an expected bankruptcy
filing, will spend $600 million to $700 million to produce what
would be the only U.S.-built subcompact car, people familiar with
the plan said Friday.
GM's plan comes out of a tentative deal reached last week with
the United Auto Workers. The union agreed to concessions that will
allow GM to turn a profit on the vehicle, something auto makers had
not been able to do in the U.S. because of the country's relatively
high labor costs. In return, GM agreed to build the car in the U.S.
rather than China as originally planned.
The car would be built at one of the factories GM had planned to
shutter as part of a government-led restructuring. It will employ
1,200 workers.
"Small cars represent one of the fastest growing segments in
both the U.S. and around the world," Chief Executive Fritz
Henderson said in a statement. "We believe this car will be a
winner with our current and future customers in the U.S."
A site will be selected in the future, GM said. Also, a specific
product wasn't identified, but the company said the vehicle would
add to GM's portfolio of U.S.-built fuel-efficient small cars
including the Chevrolet Cruze and Volt.
The project would be part of a continued revamping at the auto
maker, which is expected to file for bankruptcy protection on
Monday and begin a U.S. government-led restructuring.
GM's recovery plan so far calls for laying off 23,000 hourly
U.S. workers. Production of the subcompact will bring that number
down to 21,800.
Last week, GM and the UAW agreed to a new restructuring plan
that would give the union a significantly smaller stake in the
company than previously envisioned, and leave the U.S. government
owning as much as 72.5% of the car maker.
Under the new UAW terms, the union would own 17.5% of a
restructured GM through a retiree health care trust the company had
promised to fund.
UAW members voted on the deal this week, and the union is expect
to soon announce whether it won ratification.
The re-tooled plant will be capable of building 160,000 cars
annually, which can be a combination of both small and compact
vehicles. GM wouldn't say when production is slated to begin or
what will become of its existing subcompact sold in the U.S., the
Chevrolet Aveo.
GM shares recently fell 23 cents, or 20%, to 89 cents.
-By Sharon Terlep , Dow Jones Newswires; 248-204-5532;
sharon.terlep@dowjones.com.
(Mike Barris contributed to this report).