General Motors said today it is making a $350 million investment to prepare its Lordstown, Ohio, plant to build the Chevrolet Cruze by mid-2010.
GM said it will spend a total of $500 million on its Cruze product program in the United States.
GM is spending the $500 million on "all the things that are needed to bring a new car to production," GM spokesman Tony Sapienza wrote in an e-mail to Automotive News. He did not give further specifics.
The Cruze is scheduled to sell in the U.S. in 2011 after launching in 2009 in Europe and Asia.
The Lordstown plant is building the Cruze in place of the Chevy Cobalt, which will be discontinued. The plant's 4,600 hourly workers also make the Pontiac G5 coupe.
"The Cruze will build on the already successful Chevy Cobalt," Ed Peper, GM North America vice president of Chevrolet said in a statement. "Our dealers are asking for many more Cobalts than we can build."
Through July, Cobalt sales are up 16.4 percent from last year, to 130,660 units.
The 2008 Cobalt gets up to 24 mpg in city driving and 33 mpg on the highway. Peper said the Cruze is a replacement with fuel efficiency that consumers now demand.
"Our goal for the Chevrolet Cruze is to lead in fuel economy in this very competitive car segment," CEO Rick Wagoner said in a statement.
Earlier Thursday, GM offered an early look at the Cruze, which is scheduled to make its official debut in October at the Paris auto show. The car has a two-tier grille and wraparound headlights that look similar to Chevrolet's Malibu sedan.
"Our goal in designing Cruze was to be bold, not evolutionary," chief designer Taewan Kim said in a statement.
The Cruze is scheduled to go on sale in March 2009 in Europe, where it will be available with 1.6 liter and 1.8-liter engines and a 2.0-liter turbodiesel.
The Vindicator newspaper in Youngstown, Ohio, reports that the state of Ohio is providing GM with more than $80 million in incentives to build the Cruze in Lordstown.
GM made a similar investment in Lordstown in 2002 when it committed to renovating its assembly plant there for making Cobalts.
http://www.autonews.com/article/20080821/COPY01/113531/1130 (subs only).
Jobs are saved in Ohio, a new platform with over 40MPG WITHOUT batteries will be available here, and everyone will have a slice of pie.