GM Confirms Plans To Build Compact Cars In U.S.

By: Associated Press Email
By: Associated Press Email

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Friday, May 29, 2009

General Motors Corp. is confirming that it plans to build a new small car in the U.S. at an idled factory.

The company said in a news release Friday that the retooled factory will be able to build 160,000 small and compact cars per year. GM says it hasn't identified which plant it will use.

GM had said in documents submitted to Congress earlier this year that it planned to import small cars from China. But United Auto Workers President Ron Gettelfinger told The Associated Press on Thursday that GM agreed not to import Chinese-made subcompact cars to the U.S. as part of its concession deal with the union.

GM is expected to file for bankruptcy protection Monday, when it also will identify 14 factories it plans to close as part of its restructuring.

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