Startup of Cruze on track, GM says

GM lands CRUZE

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Chevy Cruze Unveiled in Europe

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Chevrolet unveiled its new Cruze to the press Wednesday, September 24, 2008 at the Paris Auto Show. Expected to get close to 40 miles-per-gallon, the Cruze hits the European market in March. Production for U.S. sales will begin in 2010.

But Automotive News says Lordstown production of the model will be delayed.

STAFF REPORT

General Motors once again is denying a media report that the Chevrolet Cruze will be delayed.

Chris Lee, a GM spokesman, said Wednesday that the new small car remains on schedule to be launched from the company’s Lordstown complex in the summer of 2010.

Automotive News reported, however, that GM is delaying the launch for six months to a year. The trade magazine based its report on sources that were not identified.

The report was similar to one in BusinessWeek last week that said the debut of the Cruze in North America had been pushed back to 2011.

Union officials in Lordstown said they haven’t received word of a delay.

“We don’t know anything at this point,” Jim Graham, president of United Auto Workers Local 1112, told the Associated Press. “Everything is rumor stage, and we don’t want to comment.”

Dave Green, president of UAW Local 1714 at the fabrication plant in Lordstown, told The Detroit News that he hasn’t seen any evidence of a delay. He noted that contractors continue to work on preparing the complex for the new model, and GM announced last week that it was relocating two stamping presses from a Georgia plant to Lordstown.

Automotive News reported, however, that GM is postponing nearly all of its spending on product development in 2009 and 2010 to cut costs.

The Chevrolet Volt, an electric car due out in 2010, and the new Chevrolet Camaro, expected next year, are protected from the cuts, the magazine said.

Also, the restyled Buick LaCrosse and possibly the Cadillac CTS wagon will continue as scheduled because they are far enough along that little money would be saved from a delay, the story said. The LaCrosse is due out in the spring, while the launch date for CTS wagon hasn’t been announced.

Sources told the publication that GM is trying to cut costs to avoid running out of money next year. At recent spending rates, GM would not have enough cash to fund daily operations sometime in 2009, analysts have said.

Delaying product development expenses could save the company $1.5 billion, Automotive News said.

The Cruze is expected to get more than 40 miles per gallon on the highway and is seen in the industry as a key part of GM’s drive to become profitable.

It will replace the Chevrolet Cobalt, which is now made in Lordstown.

shilling@vindy.com