GM Set to Build Tiny Fuel-Efficient Cars in the US

May 30, 2009

(ChattahBox)—General Motors announced on Friday, of some big changes on the way, to its current business model, as it seeks to become a leaner and meaner automaker capable of competing in a changing and recessionary market.

The company currently manufactures its fleet of small vehicles overseas, to take advantage of cheaper production costs. But that is about to change, as the automaker will soon build small fuel-efficient cars in the United States, something the company has not done before.

Because of the lower base price of compact vehicles, the automaker couldn’t recoup its domestic production costs. But with concessions from the United Auto Workers and future additional “innovative” labor agreements, GM has decided to open a production plant in the US for small cars.

GM is planning to produce a version of the “Beat” concept car, dubbed the “Spark,” which would be produced with tiny 1.0-liter and 1.2-liter engines, boasting a fuel efficiency of an astonishing 47 miles-per-gallon and significantly lower CO2 emissions.

This would mark the smallest car GM has ever produced in the United States.

Although, the plant location has not been disclosed, GM reportedly plans to reopen a closed plant, which would produce 160,000 cars annually and employ 1,200 people.

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