ORION -- A Labor Day success story in the heart of the nation's auto industry.
A GM plant that once produced gas guzzlers has been reborn as the only sub-compact automobile factory in the U.S.
Brad Glendee was working at a GM plant in Wisconsin that was about to close in 2008, so he moved his family to Michigan and transferred to GM's Orion plant. Before he knew it, the Orion plant shut down too, Glendee was out of work for six months.
"There was a lot of uncertainty at that point and i just had to keep my fingers crossed and hope that the leadership was making the right decisions," said Glendee
One big decision: investing more than 500-million dollars to completely retool the Orion plant to do something that GM hasn't done in more than two decades-- produce a subcompact car in the United States.
"Chevrolet Sonic hatchback, very sporty and aggressive design, not only on the exterior, but also on the interior. very fuel efficient vehicle," said Steve Brock, Assistant Plant Manager in Orion.
1500 Orion employees are back building the Chevrolet Sonic, set to hit showrooms this fall.
"I think it's an opportunity for us to show off that our manufacturing system can build anything. we can make it cheap, we can make it good," said Cark Montrosse, GM team leader.
The plant was completely gutted and redesigned to save half-a million square feet of floor space, allowing suppliers to operate closer to the assembly line.
Energy efficiencies will also help loosen the tight profit margin among cars selling for less than $15,000.
"I think it's a risk, but i think it's a calculated risk in the sense that because there's more demand for smaller vehicles. Chevrolet traditionally never had a portfolio that extended that far down into smaller cars. so trying to meet the consumer demands and looking at the future diversification away from trucks, I think it's an important step for them," said Patrick Hong, Road & Truck Executive Editor.
Another cost savings: a controversial agreement with the United Auto Workers tied to the federal government's massive bailout of GM and Chrysler. It's a two-tiered labor agreement permitting newly hired workers to be paid $14 to $16 an hour, about half what GM veterans make.
"It's a bold gamble by both the uaw and gm. it's gonna be successful. and that's gonna be really important for creating jobs in America," said Bob King, United Auto Workers Union President.
The two-tiered wage system remains controversial among some in the UAW.
That very issue is on the table right now in negotiations over a new UAW contract. Those talks are expected to wrap up later this month.
Author: Casey Wian, CNN
