Is there reason to worry about GM's new plans?

Although this year will pass without General Motors Corp. revealing its plans for a new small car to replace the highly successful Chevrolet Cavalier and the Pontiac Sunfire, which are built at the huge assembly complex in Lordstown, we remain cautiously optimistic about the company's future in the Mahoning Valley.
Of course it would have been wonderful had the announcement for a new car to be built at Lordstown come in time for Christmas, or even in time to welcome in the new year. However, the slump in the national economy has forced GM and other major corporations in America to take a long, hard look at their long-term plans.
Add to that the recent appointment of Robert Lutz as chairman of GM North America, and it becomes clear why the world's leading automaker would wait until April or May to announce the replacement for the Cavalier. According to one auto industry analyst, Lutz, who was the driving force behind the Dodge Viper and Prowler when he was with Chrysler Corp., intends to become directly involved in the new small-car project.
Good fit: Mike Wall of IRN Inc. in Grand Rapids, Mich., told The Vindicator recently that despite the delay in the announcement, Lordstown remains GM's best-suited plant for small cars. Moving small-car production out of Lordstown could come only with a realignment of GM's plans, Wall explained.
That observation from someone with intimate knowledge of the auto industry confirms what Ohio Gov. Bob Taft and officials of the Department of Development have long contended. Indeed, Taft has met on numerous occasions with GM executives and, based on their comments, has put together a financial incentive package for the automaker that reportedly far surpasses those submitted by other states that are also vying for the small-car line.
But it isn't just the Taft administration's willingness to make GM an offer it can't refuse that has put the Lordstown assembly complex at the top of the list. Management and labor at the plant have developed a working relationship that has resulted in the operation becoming more efficient, the quality of the cars exceeding the standards that had been set several years ago, and the per-car production cost being reduced significantly.
The Automotive News recently reported Lutz is emphasizing craftsmanship for the new product, which should work to the Lordstown plant's advantage. The Valley's autoworkers have proven time and again that they are among the best in the country.
The economic well-being of the Mahoning Valley is inextricably tied to GM's presence in the region. A new product would result in the company spending $500 million to upgrade the assembly complex and $230 million on the adjacent fabricating plant. That kind of investment would secure the future of auto manufacturing in the Valley.
Is there reason to worry about GM's new plans? We prefer not to -- yet.