Friday, August 22, 2008
The new product line begins in April 2010.
LORDSTOWN — Though pleased with the success of the Chevrolet Cobalt, the head of General Motors said the new car line to be built at the company’s Lordstown complex will be even better.
Rick Wagoner, GM’s chairman and chief executive officer, visited the Lordstown plant Thursday to discuss the company’s $350 million investment in the facility.
The Lordstown plant will begin producing the Chevrolet Cruze, a fuel-efficient compact car, beginning in April 2010, Wagoner said.
The success of the Cobalt, GM’s best-selling vehicle — and in preparation of the Cruze — led to the recent hiring of about 1,400 workers for a third shift at the Lordstown complex.
When asked if there is an opportunity for additional hires at the plant, Wagoner told The Vindicator, “We just made a big move taking it to three shifts here. Let’s get things up and running. Then we’ll see.”
With the new hires, there are 4,600 hourly employees and 400 salaried employees at the GM complex.
The $350 million investment includes “retooling the plant, the body shop and this product,” Wagoner said.
But he added that he didn’t expect major changes to the look of the Lordstown complex.
Overall, the company is investing $500 million on the new car line that also will be manufactured in Europe and Asia.
The Cruzes made in the three countries will essentially be the same vehicle, he said.
Wagoner acknowledged it’s a challenging time for the automotive industry and with high gas prices, fuel-efficient cars are what his customers want.
“We’re trying to convince consumers it’s still a good time to buy a car,” he said. “... People want to pay a fair price for a good car. If we do that, and the team here does [its job] in a high-quality fashion as we know they will,” the Cruze will be a success.
Wagoner declined to discuss a price estimate for the Cruze.
The CEO said he was impressed with Ohio’s incentive plan of more than $80 million to have GM build the Cruze in Lordstown.
Lt. Gov. Lee Fisher, the director of the Ohio Department of Development, said the automotive industry is “at a historic turning point” with a focus on more fuel-efficient vehicles.
“Ohio is prepared to move very quickly to meet the needs” of automobile manufacturers, he said.
Fisher described negotiating a deal such as the one with General Motors for the Cruze as “very challenging.”
Not only is Ohio competing against other states for plants, it’s competing against nations, he said.
Fisher and Gov. Ted Strickland said they meet with GM officials in Detroit four times a year to discuss the company’s needs.
The production of the Cruze will stimulate the economy of the Valley, an area of the state that has faced significant financial hardships, Strickland said.
“We intend to be competitive,” he said. “We don’t want states to steal jobs from us because we weren’t competitive.”
skolnick@vindy.com