GM says it will invest millions in Lordstown plant

[Oracle of Delphi]

August 15, 2008: 09:07 AM EST

NEW YORK (Associated Press) - General Motors Corp. said Friday it will announce a multimillion-dollar investment at its Lordstown plant and release photos its Chevrolet Cruze small car next Thursday.

The Cruze will be officially unveiled at the Paris Motor Show next month, the company said.

The Detroit automaker has said it plans to add workers at its Lordstown facility, which makes fuel-efficient cars that are selling well. It has announced a multibillion-dollar restructuring plan, including plant closures elsewhere, to try and weather the shift in consumer demand away from trucks and SUVs to more fuel-efficient cars.

Shares of GM closed Thursday at $11.35.

Link: http://money.cnn.com/news/newsfeeds/articl...775683b2604.htm

Edited August 15, 2008 by Pontiac Custom-S

[cire]

They do seem to be making diligent efforts to reduce their reliance on SUVs and trucks. This is the only way the corporation will survive and guarantee their longevity. It seems a shame that it took drastic measures for them to realize that their car products and smaller vehicles were as vital to their existence as trucks and SUVs, but I guess it's better late than never. I wish them luck and success with their efforts.

[Guest aatbloke]

This has been great news for the NE Ohio area since the news was released a few weeks ago about the decision to build the Cruze there. GM have already stated that a prototype mini-MPV version of the Cruze may also be on display at the Paris show, and has indicated that coupe-convertible and hatchback variants will follow. Given that Ford has announced that a number of its European Focus models will be built in North America with these very bodystyles, I find it difficult to see GM not following suit with the Cruze, possibly meaning massive expansion prospects for Lordstown.

[thegriffon]

They may be announcing this now, but it has been in the pipeline for years. You don't just unveil a new vehicle and a new engines a few months after you decide to build them. GM is better prepared for this shift in demand than many people seem to realize.

[enzl]

They may be announcing this now, but it has been in the pipeline for years. You don't just unveil a new vehicle and a new engines a few months after you decide to build them. GM is better prepared for this shift in demand than many people seem to realize.

This is merely the scheduled Cobalt replacement....nothing more or less.

Delta was always part of GM's future..with more brands sharing the architecture. I wouldn't even begin to argue that GM was prepared for anything...if they were, they wouldn't be closing so many Truck plants--the conversion of those facilities would have already been underway.

Just to prove their utter blindness: Intro 3 micro car concepts at NY Auto Show. Encourage millions to vote on their favorite (NY is in the US, right?) Then ignore the enthusiasm by making the Beat incompatible with US safety standards.

They are morons--the only thing Lordtown proves is the maxim that a broken clock is right 2X a day.

Edited August 16, 2008 by enzl

[Guest aatbloke]

They may be announcing this now, but it has been in the pipeline for years. You don't just unveil a new vehicle and a new engines a few months after you decide to build them. GM is better prepared for this shift in demand than many people seem to realize.

I wouldn't agree with you on this - Lordstown was a logical choice for Delta II given that a) it's been producing the Delta I-based Cobalt and b) the plant is so well located geographically; some 75% of the US population lives within 500 miles of the Lordstown facility. The rise in fuel costs in recent years and the spike this year has probably cemented GM's decision to use Lordstown for Delta II production for North America, but I don't think this has been planned for years given that just last year, GM was mulling moving Cobalt production to Mexico from 2009 and building two new models at Lordstown including a new Cadillac crossover and a future alpha-based saloon car. The decision to tool it for Delta I production wasn't in the pipeline long either, since there were serious concerns the plant would close altogether while the Cavalier was in its twilight years.

The Cruze was always intended to be a Daewoo/Chevrolet Lacett/Nubira (Suzuki Reno/Forenza) replacement in most markets from the word go, but I don't believe the decision to make this a global vehicle was the intention from the beginning.

Edited August 16, 2008 by aatbloke

[thegriffon]

It was, although the name might not have been Cruze until recently—Cobalt was considered the as the new global name for some time. As for the Nubira, last time I checked they stopped selling the J200 as the Nubira even in the UK. It's everywhere as a Chevrolet either Optra or Lacetti. But what would I expect from someone who thinks GM sells the Colorado and LUV in the UK. If they're there, they are coming in the back door. For God sakes why on earth would GM sell both.

Did I mention plants at all though? The product is in the pipeline and has been for years. All of a sudden there is a fuel crisis again, and oh look, we just happen to have new 6-speed autos before most of our competitors; oh look we have a new 1.4 Turbo all of a sudden, oh look, we have a new 1.0 L turbo we can use as an APU in an electric car. Where did that come from?" They've been there, in development all along. Ramping up production is relatively easy. GM is no worse prepared than anyone else in this regard. Better because as luck would have it, their large and midsize trucks are older than Ford's or Toyota's, so it shouldn't hurt as much to wind down production. They've sold a lot of their trucks, and what, Kia, and Toyota are bringing theirs to market now? Talk about bad timing and lack of preparation. Hell if you have a big truck program, and you can see demand crashing in five years, why wouldn't you rush the introduction so you can sell as many as you can before the crash comes. Serendipitously, that's what GM has done.

The Cadillac crossover was always going to Mexico, alongside the Vue. Cobalt, we believe was going to Mexico to make way for a new sedan, and some years later, the Alpha sedans. The only question was whether the new sedan would be the J300 Cruze, or the T300 Aveo (the information described the Cruze, but with the Aveo's platform, clearly there was some confusion). The Chevy MPV is going to Hamtramck with the Volt and some Epsilon models. As for the Beat/Groove/Trax, one of them is coming to America, but in a larger form.

A 4-cylinder for the new midsize crossovers? Apparently, done. A 1.6 Turbo that can be slotted into the midsize sedans (starting with the Insignia)? Ready and waiting. A nice 2.0 L turbo in both transverse and longitudinal formats for mid-large sedans? Hey look we have one right here! Only VW can offer something similar; and Ford, despite their talk (EcoBoost is a great name though), is still working on their alternative. The execution remains to be seen, but they are prepared.

[Guest aatbloke]

It was, although the name might not have been Cruze until recently—Cobalt was considered the as the new global name for some time. As for the Nubira, last time I checked they stopped selling the J200 as the Nubira even in the UK. It's everywhere as a Chevrolet either Optra or Lacetti. But what would I expect from someone who thinks GM sells the Colorado and LUV in the UK. If they're there, they are coming in the back door. For God sakes why on earth would GM sell both.

The J200 Lacetti/Nubira launched in 2002 was sold as the Lacetti in hatchback form throughout Europe, while the sedan & wagon were badged Nubira is some markets, notably Germany, and also initially in the UK before the name was changed to Lacetti sedan. However, the Nubira nameplate remained in several other European markets.

http://www.gm.com/europe/brands/chevrolet/nubira-lacetti

This practice was in keeping with a number of GM-DAT models, suh as the Kalos, badged Aveo is some Eastern European markets, and the Tacuma, which was badged Rezzo in a number of other European countries.

The rumoured replacement name for this car in Europe was Nubira, not Cobalt, as widely reported in the press:

http://www.autoexpress.co.uk/news/spyshots...let_nubira.html

The Thai Colorado and LUV were sold via Isuzu commercial outlets in the UK, not via mainstream Chevrolet dealers. I didn't state they were sold via Chevrolet GM dealers - I stated they were official imports, i.e. they conform to EU and UK regulations.

Edited August 16, 2008 by aatbloke

[Guest aatbloke]

The Cadillac crossover was always going to Mexico, alongside the Vue. Cobalt, we believe was going to Mexico to make way for a new sedan, and some years later, the Alpha sedans.

Earlier this year I read a newspaper article which reported the Cadillac crossover would be built at Lordstown while Cobalt production would shift to Mexico, which was confirmed by a union official at Lordstown to a friend of mine in the waste industry. This followed press articles in September last year that a new union contract revealed Lordstown would build an Alpha-platform car in 2011 with a Gamma-platformed small car beginning in 2010. None of it was officially corroborated by GM, but even so it all points to a good deal of confusion emanating as to GM's direction.

Edited August 16, 2008 by aatbloke

[Guest aatbloke]

Did I mention plants at all though? The product is in the pipeline and has been for years. All of a sudden there is a fuel crisis again, and oh look, we just happen to have new 6-speed autos before most of our competitors; oh look we have a new 1.4 Turbo all of a sudden, oh look, we have a new 1.0 L turbo we can use as an APU in an electric car. Where did that come from?"

Where? Opel. The Astra mk6 will be getting the 1.4 litre turbo and that engine was rumoured for several years.

[Guest aatbloke]

and Ford, despite their talk (EcoBoost is a great name though), is still working on their alternative. The execution remains to be seen, but they are prepared.

Ford's EcoBoost units are an almost certainty, at least in the European market. The 1.6 is due to be used in both the forthcoming mk6 Fiesta ST and RS.

[thegriffon]

The J200 Lacetti/Nubira launched in 2002 was sold as the Lacetti in hatchback form throughout Europe, while the sedan & wagon were badged Nubira is some markets, notably Germany, and also initially in the UK before the name was changed to Lacetti sedan. However, the Nubira nameplate remained in several other European markets.

http://www.gm.com/europe/brands/chevrolet/nubira-lacetti

This practice was in keeping with a number of GM-DAT models, suh as the Kalos, badged Aveo is some Eastern European markets, and the Tacuma, which was badged Rezzo in a number of other European countries.

The rumoured replacement name for this car in Europe was Nubira, not Cobalt, as widely reported in the press:

http://www.autoexpress.co.uk/news/spyshots...let_nubira.html

The Thai Colorado and LUV were sold via Isuzu commercial outlets in the UK, not via mainstream Chevrolet dealers. I didn't state they were sold via Chevrolet GM dealers - I stated they were official imports, i.e. they conform to EU and UK regulations.

And rumor gets it so wrong, so often, especially when it comes to vehicle names. I have to laugh, because almost always I have better information beforehand on vehicle names. There was absolutely no foundation to this rumor, it was just journalists and bloggers displaying their vast ignorance. The only evidence, was for first Cobalt, and later Cruze. Nubira was never in the frame. Tacuma and Rezzo were both Daewoo names. The Chevrolet version was Vivant, although few markets adopted it.

Odd definition of "official". This sounds to me like legal, but unofficial grey-market imports by-passing both Isuzu and GM. It's not uncommon but not a major part of the market in most countries. By your standard you can already get official imports of Chevrolet Corvettes, Tahoes, Silverados etc. in Australia. Or that various odd European and Latin-American cars are officially available in the US. There are loopholes that make very small numbers available, but by no means are they officially imported.

EcoBoost? yes they are due to be used. GM's 1.6, 2.0 and 2.8 Turbos are already here, and by the time EcoBoost units actually appear, there will be even more. My point again is only that GM is better prepared than most people think. Most people (despite your own claimed foreknowledge) are under the impression that thse new programs have only just been initiated, a last minute reaction to the current situation. They are not. The preparation has been going on for years.

[wildcat]

a future alpha-based saloon car

What's a "saloon" car? A sedan? (A Buick?)

Edited August 16, 2008 by wildcat

[Robert Hall]

What's a "saloon" car? A sedan? (A Buick?)

saloon is the English term for sedan.

[Guest aatbloke]

And rumor gets it so wrong, so often, especially when it comes to vehicle names. I have to laugh, because almost always I have better information beforehand on vehicle names. There was absolutely no foundation to this rumor, it was just journalists and bloggers displaying their vast ignorance. The only evidence, was for first Cobalt, and later Cruze. Nubira was never in the frame.

Then back your claim up. Certainly here, Nubira was the vaunted replacement name or Europe, both in the press and within industry ramblings alike - probably the car, like the previous Nubira, was developed by GM-DAT.

Odd definition of "official". This sounds to me like legal, but unofficial grey-market imports by-passing both Isuzu and GM. It's not uncommon but not a major part of the market in most countries. By your standard you can already get official imports of Chevrolet Corvettes, Tahoes, Silverados etc. in Australia. Or that various odd European and Latin-American cars are officially available in the US. There are loopholes that make very small numbers available, but by no means are they officially imported.

Yes, that's what it sounds like to you. However, these vehicles were officially sold here and obtained through Isuzu dealers - in fact, our local Vauxhall dealership also supplied them for several years. That means comforming to EU and UK standards, factory warranty, etc. The UK has many grey-market imports, mainly from Japan of vehicles older than three years of age, because of Japan's punitive safety inspection regulations ... however they are not built to UK specifications, nor do they come with any kind of dealership support. I'm sure you're aware that in Australia, LHD cars are illegal for use by the general public on public roads.

EcoBoost? yes they are due to be used. GM's 1.6, 2.0 and 2.8 Turbos are already here, and by the time EcoBoost units actually appear, there will be even more. My point again is only that GM is better prepared than most people think. Most people (despite your own claimed foreknowledge) are under the impression that thse new programs have only just been initiated, a last minute reaction to the current situation. They are not. The preparation has been going on for years.

GM in North America have endeavoured to react to a rapidly changing domestic market in recent years spurred by rocketing fuel prices. Opel, on the other hand, have developed engines and vehicles against such a backdrop for donkey's years. Despite the Cobalt, GM in North America have essentially looked to its foreign subsidiaries in very recent years for smaller cars - the Astra's federalisation was a very swift "bodge and make do" affair, for example. The Aveo wasn't exactly the best choice to offer a B-segment hatch in North America when it was only a matter of time before the Japanese marketed their state-of-the-art machinery in this segment against it. Granted, the Cruze is a more credible effort, although I maintain that were fuel prices today at 2006 levels, the 1.4 litre turbo wouldn't be seeing the light of day over there. So with all due respect, I don't share your view that all this has been some pre-ordained GM masterplan for its domestic market, but instead a very rushed cobbled together strategy, evidenced further by its sudden curtailment of truck & SUV production.

The EcoBoost will arrive, it's only a matter of time, and will likely be at the forefront of Ford's petrol engine range in Europe, just as the EcoNetic units are expanding within its diesel line-up.

Edited August 17, 2008 by aatbloke

[thegriffon]

A very few LHD cars are in Australia, but grey-market American cars are usually converted to RHD before being sold here. These are usually new vehicles, with Australian compliance plates, not imports of questionable used cars. At the same time there is no factory warranty and no support from either GM and Isuzu. Your Chevy LUVS and Colorados would not have either. It would be up to the grey-market importer to provide warranty and support, for whatever that is worth, and UK and European certification (which by the way seems incredibly lax for these entrepreneurial importers). I would not call these "official" imports. They are termed grey-market because they are not illegal, non-compliant vehicles (black-market), but they have no factory support and are not officially imported by the manufacturer or licensed distributor.

[longtooth]

They may be announcing this now, but it has been in the pipeline for years. You don't just unveil a new vehicle and a new engines a few months after you decide to build them. GM is better prepared for this shift in demand than many people seem to realize.

That's about right. GM almost never does, save in the case of Malibu. They hype the sh*t out of something, then seem genuinely puzzled when their child stumbles out of the gate. Examples of late: The SSR. Lots of noise, big thud, no ripples as it slid beneath the surface. And, about 8 years ago (in-house mostly) it was the Aztek. I need say no more. Aztek.

Now it has been for the past 2.5years Camaro! As I see really stunning Mustang variants slaying mostly everything under $45,000. I've stopped wondering about these guys, but the press never does.

Here's an article from "Seeking Alpha" which outlines their take on GM's woes. My, my.

http://seekingalpha.com/article/91249-gm-f...up?source=yahoo

[daves87rs]

I'm just happy to see some good pictures of the Cruze....

[Drew Dowdell]

I had to clean out a number of irrelevant posts from this thread. Lets move it back on to topic. If you see that a post of yours is missing and have questions or wish to challenge the validity of the deletion, please take it up with me directly through PM and I will re-review the post in question.

Thank you.

[toesuf94]

Now if GM would only give me the Chevrolet Nomad that they showed us so many years ago with an Ecotec turning the rear wheels built on the Kappa platform...a small/midsize car with character and panache and utility that is targeted at people who drive to work alone and may need a second or third seat once in a while! Come on GM...Give me my Nomad RWD 4 cylinder!!

[Robert Hall]

Now if GM would only give me the Chevrolet Nomad that they showed us so many years ago with an Ecotec turning the rear wheels built on the Kappa platform...a small/midsize car with character and panache and utility that is targeted at people who drive to work alone and may need a second or third seat once in a while! Come on GM...Give me my Nomad RWD 4 cylinder!!

I saw that concept in person a few years ago..it's a sweet design. Wish they had built it.

[daves87rs]

I saw that concept in person a few years ago..it's a sweet design. Wish they had built it.

Yes.....