Posts Tagged ‘Lordstown’

GM, Strickland announce creation of 1,200 jobs in Ohio

LORDSTOWN – Ohio Gov. Ted Strickland joined General Motors North America President Mark Reuss and other state and regional leaders today to announce the creation of 1,200 jobs through the addition of a third shift at GM’s Lordstown plant to support the production of the new 2011 Chevrolet Cruze.

“I’m proud to celebrate the creation of 1,200 new Ohio jobs and the resilience of the working men and women of the Mahoning Valley. The chips were down but we never gave up,” Strickland said. “That grit and steely determination is why I love this valley and why I believe in Ohio.

“The economic impact of GM’s investment will benefit the people of this region and communities throughout Ohio: GM’s Defiance Foundry will build engine blocks for the Cruze. GM’s Parma Metal Center will stamp dozens of components for the Cruze. GM’s Toledo Powertrain Center will produce transmissions and numerous suppliers in the Mahoning Valley and across the state will contribute parts for the Cruze,” Strickland said.

“Born in Ohio, built by Ohioans, the Cruze will become synonymous with Ohio. And that’s fitting because it reflects the innovation and resilience of the people of Ohio.

“It’s a great day in Ohio. Because GM is making a little automotive history in Ohio today. And Ohioans are going to be making a new kind of car for years and years to come,” Strickland said. “We look forward to continuing our strong partnership with GM and the Lordstown community to keep auto manufacturing strong in Ohio.”

U.S. Rep. Tim Ryan also released the following statement:

“President Obama and Congress made the unpopular but necessary decision to take partial ownership of General Motors and guide it through bankruptcy. This bold step may have saved manufacturing in the United States from being wiped out,” Ryan said. “As a result of that leadership, not only were the Mahoning Valley and Northeast Ohio community spared an economic catastrophe, we now stand to reap the benefits of those tough decisions. I commend the workers at the GM Lordstown plant for their leadership and maturity. Without their skills, talents and positive attitude, this day would have never come.

“I would like to thank Governor Strickland for his constant attention to the Mahoning Valley and the 17th Congressional District. His input and guidance have been instrumental in not only this project, but in every one of our economic successes over the past few weeks.

“I would also like to commend Senator Sherrod Brown for his powerful voice on behalf of our domestic manufacturing base. The American auto-industry has no better friend in the Senate.

“It’s clear that our local economic development strategy is working: another 1,100 high-paying jobs in Lordstown, corporate investment of $650 million and 350 permanent jobs at V&M Star, 500 more jobs expected at VXI in downtown Youngstown, a San Francisco technology company bringing up to 100 jobs to the Youngstown Business Incubator in the next two years, and Severstal Steel returning to work in Warren. I believe that this is the beginning of the Miracle on the Mahoning,” Ryan said.

Ohio and GM are continuing to move forward on important investments for our state. Last week Governor Strickland joined GM officials at the Powertrain Plant in Defiance to announce a $59 million investment that will support the production of the next generation fuel efficient Ecotec engine while creating about 80 new jobs.

And, on Feb. 8, the governor announced that the Defiance plant was awarded a $518,232 industry efficiency grant through Ohio’s State Energy Program, funded through the American Recovery and Reinvestment Act. The award will help fund new equipment that will save energy, reduce raw material consumption, reduce greenhouse gas emissions, and allow the facility to be more competitive by reducing its overall annual costs by $515,013.

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GM cancels contracts for Cruze/Volt engine plant

The bad news just keeps on coming for General Motors and Flint, Michigan. It was reported late last night that construction contracts for the new $370 million engine plant that was going up in Flint have been canceled. GM actually stopped work on the project in early December. The plant was to produce the new 1.4-liter four cylinder engine for the 2011 Chevy Cruze and Volt.

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First Chevrolet Volt/Cruze engines will come from Austria

General Motors has confirmed that the first batch of its upcoming Chevrolet Volt plug-in hybrids will feature an internal combustion ‘back-up’ engine sourced from Aspern, Austria, and not from Flint, Michigan, as originally planned. The announcement comes just a week after it was revealed that GM’s contract to build a new engine plant in Flint to supply the necessary 1.4L four-cylinder units for the Volt had been canceled.

The decision to source the engines from overseas will not add any extra cost to the car’s eventual sticker price, which is expected to fall some around the $40,000 mark. The information comes from GM spokesperson Sharon Basel who told Ward’s Auto that GM is simply leveraging its global footprint and that there was nothing unusual about the decision.

Basel also stressed that Flint will remain the target for North American sourcing of the 1.4L engine, and that GM may consider using an existing plant instead of building something new.

The engine in question is a new 1.4L petrol unit from an engine group called the ‘Family 0’, which includes powerplants displacing between 1.0 and 1.4L. Family 0 engines first appeared as far back as 1997 and have been in production in Europe since then. A naturally-aspirated version of the 1.4L unit was destined for the Volt, while the upcoming Chevrolet Cruze was to use a more powerful turbocharged version.

The Austrian engines will be sent to the Volt assembly plant in Hamtramck, Michigan, and the Cruze facility in Lordstown, Ohio.

GM is still committed to investing $30 million to build a new battery plant in Michigan together with LG Chem. It hopes to build about 10,000 Volts in the first year of production, eventually ramping up to about 60,000 units per year.


Chevrolet Cruze to get 45-mpg

Entering production in April 2010 at the Lordstown, Ohio plant in the United States, the Chevy Cruze is sure to be a hit. With the initial release of the vehicle in mid 2009 in Europe, GM will have the kinks worked out in time for it’s North American release.

There have been widespread rumors in regards to the efficiency of the vehicle. The outgoing Cobalt, currently gets 33-mpg on the highway and it’s special fuel efficiency program (XFE) counterpart gets 37-mpg on the highway.

On August 12th, 2008 Beth Lowry confirmed the new upcoming Cruze will get 9-mpg better gas mileage then the current Cobalt. We are not mathematicians, but 37 + 9 is 46-mpg, but we dare not argue with a press release. The success of the Cruze is essential to the survival of General Motors, as it seems only it’s compact segment is performing in terms of sales.

The Cobalt, which is confirmed to be leaving in 2010 has been a consistent performer, with sales of approximately 200,000 units annually. This compact segment is particularly important to each of the Big Three, as each company has been posting losses due to it’s heavy presence in the truck market. Therefore the key players view the compact segment as opportunity to make up for lost sales in other areas caused by higher gasoline prices.

The Cruze according to General Motors press releases, will be powered by a 1.4L turbocharged global engine, which is said to produce 140hp. No word yet on an SS model, which has been an important part of sport compact tuning since it’s debut. It will be slightly larger in size then the Cobalt, however smaller in size than the Malibu.

General Motors has set $150 million aside for development costs for the Cruze, as well as $350 million for refurbishing the Ohio plant for manufacturing the vehicle. Amidst of cutbacks, the Lordstown, Ohio plant is one of the few to receive new product and an increase in capacity. This is part of a larger scale turnaround plan to fully revitalize General Motors and turn it profitable.

CEO Rick Wagoner recently revealed a full size foam replica of the 2011 Chevrolet Cruze at a recent news conference at Lordstown, Ohio General Motors manufacturing plant.



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