GM announces plans to build new small car in U.S.

As reported earlier this morning, GM no longer plans on importing subcompact cars from China. The Detroit automaker said that it will build up to 160,000 units of subcompacts per year at an existing U.S. facility.

GM has now released a statement saying that it plans to build a future small car in the United States utilizing an idled UAW-GM facility.

While GM didn’t specify which vehicle it will built at the facility, it said that the new small car will join its fuel-efficient lineup including the Chevrolet Cruze and the Volt. We’re putting our money on the upcoming Chevrolet Spark.

“Small cars represent one of the fastest growing segments in both the U.S. and around the world,” said Fritz Henderson, General Motors President and CEO. “We believe this car will be a winner with our current and future customers in the U.S.”

GM said that the re-tooled plant will be capable of building 160,000 units annually with a combination of small and compact vehicles.

– By: Omar Rana