Officially Official: GM to build B-segment cars in Lake Orion, MI
by Sam Abuelsamid on Jun 26th 2009 at 2:31PM 
2010 Chevy Spark - Click above for high-res image gallery
Following weeks of speculation, General Motors finally made its decision official this afternoon. Its new small cars will be built in Michigan with final assembly taking place at the Lake Orion plant with stampings coming from the nearby Pontiac Metal Center. As a result of the decision, 1,400 jobs will be preserved in hard-hit Michigan.
The Lake Orion factory was due to be idled in September, when production of the Pontiac G6 ends there. Instead, it will be re-tooled to build a new small car that has not yet been announced. The plant will be specified as a B/C plant, meaning it will have flexibility to build both B and C segment cars. The first will be a B car, which will replace the Aveo and may be called the Viva. The plant will also be able to build C cars like the new Cruze and possibly a Buick version of the Opel Astra. The Viva would be a B-segment car similar in size to the new Ford Fiesta.
GM expects the new car to account for more than 100,000 sales in North America. Powertrain components will also be sourced from GM's North American operations although no specifics have been announced yet. GM emphasized that this is the first car of this size to be built in the United States from any major automaker.
Gallery: Geneva 2009: Chevy Spark
Gallery: 2010 Chevy Spark
[Source: General Motors]
Michigan Plants Will Build GM's Future Small Car
UAW, state & local government support, and GM's efficient, flexible manufacturing operations make competitive, profitable small car in U.S. possible
1,400 total jobs to be saved
DETROIT -- General Motors selected its assembly plant in Orion Township, Mich. and stamping facility in Pontiac, Mich., to build its future small car, which will add to the automaker's growing portfolio of U.S.-built, highly fuel-efficient cars, including the Chevrolet Cruze and Volt. Today's announcement will restore approximately 1,400 jobs in total -- 1,200 at Orion Assembly and 200 at Pontiac Metal Center, Building # 14.
This decision is dependent on the successful outcome of ongoing economic incentive negotiations between GM and state and local government officials.
"Small cars represent one of the fastest-growing segments in both the U.S. and around the world," said Troy Clarke, president of General Motors North America. " GM will be the only automaker, foreign or domestic, to build small cars in the U.S . , and we believe Orion Assembly and Pontiac Stamping are well suited to deliver a high-quality, fuel-efficient car that competes with anything in the marketplace."
A selection team comprised of leaders from several of GM's functional areas, including manufacturing, labor relations and finance, made the final decision based on a specific set of criteria. Orion Assembly will be retooled and is anticipated to be a two-shift operation, building 160,000 cars annually - a combination of both small and compact vehicles.
"This is great news for our members at UAW Local 5960, Oakland County, and the State of Michigan, and shows the world the UAW can compete in the most competitive segment of the automotive industry," said Cal Rapson, UAW Vice President and Director, UAW-GM Department. "My heart also goes out to our UAW members in Janesville, Wisc., and Spring Hill, Tenn. Our work will not be complete until all of our members displaced by the shrinking auto industry are returned to work. With today's announcement, we can begin to restore hope that the worst of the times are behind us."
Gary Cowger, Group Vice President of GM Global Manufacturing & Labor Relations added: "I would like to personally thank all of the key stakeholders involved in the review process, including state and local government officials. This vehicle segment is one of the toughest and most competitive in the world but with our recently modified agreement with the UAW and GM's proven capability in efficient, flexible manufacturing, it is now possible for GM to produce these size vehicles in the U.S. in a cost-competitive and profitable way."
As announced on June 1, Orion Assembly will be placed into standby capacity status in Sept. 2009. Pontiac Metal Center 's Building #14 will be placed into standby capacity status in Dec. 2010. Pontiac Metal's buildings #15 and #25 will close by Dec. 2010, or sooner depending on market demand. Timing for the retooling of the small car assembly and stamping plants is still under study, but we anticipate this prep work would begin in late 2010 in anticipation of the start of production in 2011.
Two other GM assembly plants in Spring Hill, Tenn. and Janesville, Wis. were also under consideration to build the future small car. Spring Hill will be placed in standby capacity status in Nov. 2009, as announced earlier this month. The plant could be brought online at some point in the future should GM require additional capacity due to increased market demand. Janesville was placed on standby capacity in May 2009 and will remain in that status.
GM already has a strong manufacturing presence in the United States. Currently, about 67 percent of GM cars and trucks sold in the United States are built there. With this announcement, GM anticipates that U.S. production levels will increase beyond 70 percent by 2013, augmenting its already industry-leading U.S. manufacturing footprint of by far more plants than any other OEM.
General Motors Corp., one of the world's largest automakers, was founded in 1908, and today manufactures cars and trucks in 34 countries. With its global headquarters in Detroit, GM employs 235,000 people in every major region of the world, and sells and services vehicles in some 140 countries. In 2008, GM sold 8.35 million cars and trucks globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com.
Reader Comments (Page 1 of 1)
Julius 2:51PM (6/26/2009)
I see stickers on new Cobalts for $12k. I wonder what Michigan did to make this plant "profitable" at those sales figures... otherwise, I'd bet GM will still lose money on this "apolitical" decision.
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videoCWK 3:26PM (6/26/2009)
Wow, that car is hideous. And I love small cars.
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NeilBlanchard 10:53PM (6/26/2009)
You said it -- it is fugly. And I would wonder if all those ridges and crisp edges will add drag? I doubt that it will beat the iQ's cD of 0.299.
Neil
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Chris 12:16AM (6/27/2009)
Why do they insist on keeping plants open in Michigan? Get over the "American workers" sentiment and build elsewhere. I'm not saying move out of the country but there are other states that would benefit from mass employment. One's that have idled car plants.
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videoCWK 1:26AM (6/27/2009)
To continue my point, it looks like they were trying to make it look as aggressive as a small car can. Perhaps they're trying to cater to the same stereotypical Americans that they've catered to for so long with their SUVs. Hmm.
Or maybe they're trying to appeal to sci-fi fans because it looks like a spaceship, or at the very least some kind of stereotypical futuristic car. I don't see this selling well. The enormous headlights just look crazy, the whole styling of the car is weird, and the only paint colors I've seen it in have been some variation of "neon vomit." Yuck.
I just hope that car design in general doesn't go this way. Ignoring my earlier, if consumers will buy something as hideous as the PT Cruiser, they might buy this too. It is less ugly. But I might have to start saying "cars were better when I was a kid" sooner than I thought (I'm almost 16).
I dunno. This does share some styling similarities to the Kia Soul, which I'd love if it was toned down just a tad.
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Larzen 10:29AM (6/27/2009)
The Frankenstein monster, get a body part here, get a body part there look,
is a total turnoff. If they can't tell that this car is grotesque looking, they
deserve to fail. Also, why did they decide to make the Volt look like
all of their other Mom & Pop cars? If they want to go sedan on the
Volt, the Saturn Aura would have been a much better style. This "Spark"
I can hardly even look at. I try to look at it again and I find myself diverting
my eyes elsewhere on the page. Ewwww, that's ugly. What's with that
bulbous, elevated hood? GM needs a design team.
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JasonN 10:32AM (6/27/2009)
I like the styling of the Spark! I'd buy one if it was electric.
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SumideXE 1:30PM (6/27/2009)
I am also a fan of small cars..
The entire front of the car is a joke and the rear is mediocre.
What the hell is up with GM's design department?
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pyro-1955 7:46PM (6/30/2009)
That piece of crap is nothing but an obama mindset "this is what americans want" garbage. Truth is, we don't and won't buy. Unfortunately GM (government motors) will NEVER RECOVER. I will NEVER buy another GM as long as obama and or the government has anything to do with the company. It really sux as I've owned nothing but GM's all my life, and had put a Camaro on order, but canceled when obama fired Wagoner, I no longer will have anything to do with GM.
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Thunderbuck 9:44PM (6/30/2009)
So let me get this straight...
You'd rather those 1,400 jobs had gone down the tubes, just because they'll be building cars that YOU aren't interested in?
Kind of selfish, huh?
pyro-1955 2:04PM (7/02/2009)
Nope, Would rather have seen GM allowed to make their own decisions, the only reason they needed federal money was because the federally bailed out banks wouldn't loan the auto companies any money, Wagoner had a plan, and his plan was to not put the entire country out of work. How does a Lawyer that has never had a real job think he knows everything??? Those 1,400 jobs will vanish anyway's along with the rest of the company, which is selfish on obama's part. He destroyed it, not me. If you want to fix the auto industry, eliminate the "cafe" restrictions which force them to build junk like the one above to get their "average mpg" up to par so they can build the trucks we NEED. No one buys small american made cars because no one wants small american cars, period!
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