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GM to Build Next-Generation Cruze in Lordstown

General Motors Co. says it will invest $200 million by 2015 to retool its car factory in Lordstown, Ohio, to produce the next-generation Chevrolet Cruze compact car.

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General Motors Co. says it will invest $200 million by 2015 to retool its car factory in Lordstown, Ohio, to produce the next-generation Chevrolet Cruze compact car. The plant began building the first-generation Cruze sedan in 2010.

The carmaker also will spend $20 million to upgrade a nearby metal stamping plant in Parma, Ohio. The two facilities employ about 6,000 workers, 5,000 of whom work on the Cruze.

The revised model is expected in late 2014. GM says upcoming Cruze will be more fuel efficient that the current vehicle and offer updated exterior and interior styling and a roomier cabin. The company provided no further details.

Analysts and local union leaders say it is unusual for an automaker to announce a production commitment far in advance and without using the pledge as a tool in contract talks.

The Cruze was a strong seller last year, aided in part by shortages of competing Japanese models after natural disasters in Asia. Demand has dropped 13% to 128,800 vehicles in the first seven months of 2012.

Gardner Business Media - Strategic Business Solutions