General Motors to Build Small Car in Mich.


General Motors repealed a decision Friday to close two plants near Detroit, Michigan; a new small car will be assembled at their Orion plant, reported the New York Times.

A metal-stripping plant in Pontiac will also remain open to supply the Orion plant, reported the New York Times; these plants were among the 14 recognized by General Motors June 1 to be closed. Gary Peters, a democratic representative whose district includes both plants, said, “General Motors made the best business decision in choosing the Orion Assembly plant to build its next generation vehicles.”

The Detroit Free Press reported that General Motors will invest between $600 million and $800 million to furnish the plant with the equipment to build up to 160,000 small cars per annum, beginning in 2011.

General Motor’s final decision is dependent on the successful outcome of ongoing economic incentive negotiations, reported the Oakland Press. The president of General Motor’s North American Operations, Troy Clarke, said at a conference call with reporters that Michigan had presented General Motors with a remarkably good package of incentives.

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