GM Announces U.S. Small Car Plant

It looks like the UAW (and Obama) took GM out behind the shed for a little talk... GM is announcing that the will re-tool on of their U.S. plants (not "North America") to produce a small car (maybe the Spark).

Actually, it was not just coercion, but negotiation. According to news reports, the UAW gave GM further concessions, such as broader job classifications, to allow a small car plant to be profitable.

GM was looking at a public relations mess, with Ford previously announcing that the European Focus would be built in a re-fitted Michigan Truck plant, and the UAW howling that taxpayers should not fund more off-shoring of vehicles. By bringing a b-car line to the U.S., GM leapfrogs Ford, which is going to build its Fiesta in Mexico.

The whole thing makes me wonder, though. Was GM's plan to import Chinese cars a business plan, or was it a bargaining stick?

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