Car blogs

General Motors Corp., which was going to import a new subcompact car called the Chevrolet Spark directly from China when it goes on sale in 2011, now says it will build them, and at least 100,000 more new small cars each year, in the U.S.



----------
Spark Concept at Detroit auto show.
----------

The decision is being billed as a concession to the UAW to get the autoworkers union to sign off on GM's reorganization plan, and that's likely true.






But we suspect it also is part of GM's response to new federal fuel-efficiency standards and the Obama administration's push to wring more small car production out of the U.S. auto industry - now mostly in thrall to the federal government because it is supplying both GM and Chrysler the cash they need to stay in business.


Whatever the reasons, GM now says it will build up to 160,000 new small cars at a previously shuttered plant that it will reopen and dedicate to small-car production.


The automaker isn't disclosing the location of the plant yet. There are many shuttered locations to choose from and the company probably is asking the various communities to vie for the jobs a plant reopening will bring by offering tax breaks and other concessions that will help cut GM's operating costs.


Nor is GM saying which cars will be built at the plant.


We believe the Spark will be one - but as GM was only planning on annual U.s. sales of 50,000 of the three-door hatchbacks, we expect at least one, maybe two other compacts or subcompact models will be built there.
Continue reading...

Tags: Chevrolet, Fuel Economy, General Motors, Chevrolet Spark, Chevy Spark, Fuel Economy, General Motors, GM

---

GM To Build 160,000 New Small Cars in U.S. as It Aims To Hit 2015 CAFE Goal was originally published by Green Car Advisor. Read the full story by clicking here.