GM plans to build small cars in the US

Struggling to save itself from bankruptcy, American auto major General Motors (GM) has announced plans to build small cars in the US, arguing that there is a growing demand for such vehicles both in the country and overseas.     

"Small cars represent one of the fastest growing segments in both the US and around the world," said Fritz Henderson, General Motors President and CEO, while making the announcement at Detroit, the company headquarters.     

To be built at an idled UAW-GM facility, the proposed new small car adds to GM's growing portfolio of US-built, highly fuel efficient cars including the Chevrolet Cruze and Volt.     

"We believe this car will be a winner with our current and future customers in the US," he said. The re-tooled plant will be capable of building 160,000 cars annually, which can be a combination of both small and compact vehicles.     

"This vehicle segment, while important today and expected to be more so in the future, is extremely challenging. It takes a special effort by everyone to bring a domestically produced small car to market in a cost-competitive and profitable way - but that is what we are going to do together," Henderson said.     

With this announcement, GM anticipates that US production levels will increase beyond 70 per cent by 2013, augmenting its already automotive industry leading US manufacturing footprint.