GM’s putting up $220 million for its Lordstown and Parma plants to continue building its best-selling compact sedan under the Chevy label. GM says the new model will offer better mileage and more storage space, as well as different design features.
Union leaders praised the decision. UAW Local 1112 president Glenn Johnson said this will help more than 4,500 workers at Lordstown and Parma.
“This is a substantial investment, and it shows GM’s commitments not only to our membership but to our community and our region," said Johnson. "I don’t care whether it’s in the supply industry, the housekeeping industry, or whether it’s the little carry-out down the street. They all depend on a healthy General Motors, and our members that work there.”
The announcement follows slumping sales of the Cruze this summer. July sales were down 39 percent, following a 24 percent drop in June. And the brand suffered a setback earlier this year when GM recalled more than 475,000 Cruzes for a design issue that could have caused engine fires.