GM’s revival to benefit Valley

Photo

Spy photos of a camoflauged vehicle seen in Europe, believed to be the new Chevrolet Cruze.

By HOLLY SCHOENSTEIN

During the past year, GM has revised its business strategy, transferring the spotlight to Lordstown.

LORDSTOWN — What a difference a year makes.

Detroit-based General Motors Corp. has seen a downturn of the auto manufacturing business, which has been beaten by a faltering economy, escalating gas prices and the increased demand for gas mileage-stretching vehicles.

These factors have forced the auto manufacturer to re-think its business strategy, turn its attention away from gas-guzzling vehicles and focus on more fuel-efficient cars.

Despite significant changes in the company’s business strategy, which resulted in cuts in production at other plants — including one in southwestern Ohio — it appears GM is on a positive path.

And the Mahoning Valley will benefit.

“It’s been a whirlwind, but it’s been a great three months for us because the news that has come [from GM] is good news, which is an adjustment for our area,” Lordstown Mayor Michael Chaffee said. “Anything that shines positive light on our Valley is a great thing.”

In preparation for the manufacturing of the Cruze, the new compact that will join the Chevrolet Cobalt and the Pontiac G5 on the production line in mid-2010, GM reinstated the third shift at the Lordstown plant.

“There’s been a lot of changes for both GM and the industry as it has shifted, and we’re really pleased about how the Cobalt has been received,” said GM spokesman Tony Sapienza. “We’re really excited about giving the Lordstown team another opportunity.”

Lordstown will be the sole U.S. plant that will manufacture the new model; without it, the plant would have been in danger of closure.

Its revival is expected to bring hundreds of families to the Valley.

In attempts to entice workers to settle here, cities and organizations have offered incentives for buying homes — from cash to tax credits.

GM announced plans last week of its intent to reveal details of its multimillion-dollar investment at the plant. Sapienza would not confirm how much would be invested, but the Ohio Department of Development wrote in a news release that it could be worth $317 million.

The details will be announced Thursday at the plant during a special ceremony, which GM Chief Executive Rick Wagoner; Gov. Ted Strickland; Lt. Gov. Lee Fisher; and Cal Rapson, United Auto Workers International vice president of the GM division, are expected to attend. The ceremony starts at 2 p.m.

The Cruze is expected to make an appearance, and the first official photos of the compact will be released. Stealth photos on the Cruze have been published online and in auto industry magazines.

“Eventually, I’d like to see [the Cruze] sell so well that they’re adding other vehicles to the line out there and that GM Lordstown becomes the epicenter of small vehicles in the country,” Chaffee added.

SEE ALSO:General Motors timeline

hschoenstein@vindy.com