Small cars will save one GM plant - WKOW 27: Madison, WI Breaking News, Weather and Sports

Small cars will save one GM plant

DETROIT (AP) -- General Motors' plan to reopen a shuttered U.S. factory will lead to production of the automaker's smallest domestically-produced cars.

A person briefed on the plan says it will also create 1,200 jobs, chipping away at some of the 21,00 that are being lost when GM closes 14 factories by the end of next year.

The person says GM hasn't decided which plant will get the new vehicles, but it will be one of the 14. The automaker says the retooled factory will be able to build 160,000 cars a year.

GM had told Congress it planned to produce up to 51,000 subcompacts per year in China, angering its union and lawmakers.

Yesterday, the United Autoworkers Union said GM had agreed as part of a concession deal to build them in the U.S. The person briefed on GM plans says new fuel economy standards in the U.S. made it a favorable proposition.

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