Breaking: GM To Build New Small Car At Idle U.S. Plant, Not China

Breaking: GM To Build New Small Car At Idle U.S. Plant, 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.

According 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."
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Agent001Agent001 - 5/29/2009 2:51:46 PM
-6 Boost
Well, it's about damn time SOMEONE has used their brains!!!

Hopefully, the pressure from our articles have been a small part of making these idiots do the right thing.

001


BremboBrembo - 5/29/2009 2:56:06 PM
+6 Boost
I can't restrain myself from calling you an idiot. Hope your self important makes you a little happy.


inspirion7inspirion7 - 5/29/2009 5:25:50 PM
+4 Boost
Truly, this forum doesn't have that type of influence. Giving proper credit,I'm sure the thousands upon thousands of hedge fund holders, retired workers and senators along with various union workers from around the world created a avalanche of pressure on GM. This didn't just occur over night.


Agent001Agent001 - 5/29/2009 5:53:03 PM
-1 Boost
Every little bit helps.

Name ONE major auto site besides ours that put their neck on the line and called them out...not just saying they are sending these jobs overseas but that it is NOT right?

Edmunds? KBB? AOL? Yahoo?

NO other major site but AutoSpies.com

All the others just sit there like lemmings and nod.

001



Bmw8terBmw8ter - 5/29/2009 8:25:11 PM
0 Boost
Self-aggrandizing much?


veyron1001veyron1001 - 5/29/2009 3:03:22 PM
+1 Boost
The only time you will see GM and small is when the middle mentions their profits.


Agent00RAgent00R - 5/29/2009 4:09:30 PM
+1 Boost
Veyron, rough!


tangotango - 5/29/2009 11:54:36 PM
+3 Boost
This is why I prefer to wait instead of joining in on the right-wing rhetoric that tends to exist on some of the pages of this very site. Every time I come here I have to face some political tirade that mentions cars instead of articles about cars that happen to mention political input. I've now taken to seeing who is posting before I read the article.


Agent001Agent001 - 5/29/2009 11:59:39 PM
-2 Boost
Well, it would make sense you would see a lot of comments that lean right seeing that our demographic is the wealthiest on the net.

001




Agent001Agent001 - 5/30/2009 12:00:49 AM
-2 Boost
A lot of successful entrepreneurial business people read Auto Spies so I would think the comments would be pro-capitalism.

001


XYZZXYZZ - 5/31/2009 7:32:51 AM
-2 Boost
unavoidable FACT of autobuilding: when competitive pricing is essential for a product's success, costs HAVE to be minimized.

it has been part of detroit culture for half a century, to contract with suppliers offering the LOWEST BIDS. while all makers do this to some degree, unlike the asians (toyota and honda esp.), detroit let price outweigh


XYZZXYZZ - 5/31/2009 7:40:10 AM
-1 Boost
outweigh quality and durability of parts.

THIS explains the poor showing of GM and chrysler products in the CR repair record charts, vs. that of toyota, honda and others. by extension, it also underlies their deteriorating market share and competitiveness over the years. which culminated in the situation today. all this, ASIDE from engineering and styling considerations.

the ADDITIONAL cost disadvantages of both uaw scale rates, AND outrageous CEO salaries just exacerbated the problem.


pagemanpageman - 5/30/2009 11:54:13 AM
+1 Boost
GM has some serious identity issues to overcome if they ever want to start selling like they did 30 years ago.
People in the past would only buy "nothing but a Chev". Those are our parents and grandparents. The newer generations don't have that brand loyalty and look for value. Can GM deliver? This is the major factor for Chrysler as well. I hear it in showrooms. Customers saying, "I owned Chryslers for 30 years and now my kids tell me to stop buying them and go look at a Toyota. That's why I'm here.". This is a trend that has been happening for almost a decade and neither GM or Chrysler has tried to capture the younger generations. Old-school thinking has killed them.
I find it hard to believe that GM could paste a positive image to the younger generations. This endeavour will take years to recify. GM's current sales will still rely on those "old" brand loyal customers but it is only a matter of time for those leads to totally exhaust themselves.


toolatetoracetoolatetorace - 5/30/2009 11:14:46 PM
-1 Boost
Yes , pageman ,kids nowdays want nothing to do with what there parents had from the houses they live in , the cars they drive and the clothes they wear . "Those" people in the past drove nothing but chevys because they gave them good service and value . Something you say todays kid are looking for . You must have good luck with the Chrysler family otherwise you would have switched brands .Your kids want to you to buy import to make you look cool to their freinds . GM and Chrysler you say are not trying to appeal to the newer generation? Many of the new makes from all the auto makers are just plain ugly . I cannot tell the difference in who makes what until you look at the badge .Yes , todays's kids are looking for value , are we not all? If they see an import it imemdiatley classifies as a good value because Consumers Reports says it is and it is percieved as a good value . The value they do not see is the money that is being sent overseas and the fact that one in ten people are in the supply chain of the domestic auto industry and the loss of income taxes that these people were paying to our government . The low paying jobs that they will get later will no way make up for the income loss to the tax loss of the now low wage earner


XYZZXYZZ - 5/31/2009 8:01:01 AM
-1 Boost
pageman, toolate--

brand loyalty only works with the "true believers." but even THEY (and/or their kids) eventually learn certain truths.

you can not forever put together cars that are ASSEMBLAGES of the CHEAPEST PARTS you can outsource, without your customers wondering why their cars are in the shop more often than their neighbors' which are usually better built hondas and toyotas.

GM would've made a better decision to build HIGH PROFIT models domestically, and continue to import low profit small cars from korea, and mexico. but their GREED in trying to maximize profits made them assemble the higher profit units in mexico.

this IS a good gesture for PR. but hyundaismoke is correct that its ECONOMIC viability will be doubtful.


vwrulesvwrules - 5/31/2009 11:29:33 AM
-1 Boost
After long thought I am in the GM and Chrysler should have closed their doors they both were so poorly run they did not deserve any help from the American taxpayer.UAW needes to go out of buisness for the same exact reason. You think they would have stepped up and said we can help fix this, no UAW makes comments like not are job to run the company we just provide labor.Lazy greedy mafia bums, all they want is to get paid.I dont even feel sorry for the rank and file they elected these fools soo enjoy working the drive thru at the Mac and Don Supper Club!!!!


vwrulesvwrules - 5/31/2009 9:41:43 PM
-1 Boost
Hey 1 UAW il take a milkshake and a large order of fries with my meal,god I hope when you union guys start worken for the clown you dont screw up their buisness like you did at GM .


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