GM to add 1,200 jobs in Ohio

By Chavon Sutton, staff reporter


NEW YORK (CNNMoney.com) -- General Motors announced Tuesday it would add 1,200 jobs to its Lordstown, Ohio plant in preparation for the launch of its newest small car.

Detroit-based GM said the new third shift at the Ohio plant would support the production of its 2011 Chevrolet Cruze, which was launched in Asia and Europe six months ago to replace the Chevrolet Cobalt.

Production of the new compact car isn't expected to begin until the third quarter of this year. But once underway, GM estimates the new production schedule will generate $47 million in additional payroll, $470,000 in local income taxes, and $1.4 million in state income tax.

"Adding a third shift to build Cruze is an investment with impact far beyond General Motors," said Mark Reuss, president of GM North America, in a press release. "It's an investment in the long-term value of Lordstown and the prosperity of Ohio."

The Lordstown, Ohio, factory, which will produce Cruze models for the United States and Canada, was built in 1966. Some 14.3 million GM cars have been manufactured at the plant, including 1 million Chevrolet Cobalts since the vehicle's launch in 2004.

While GM declined provide price or sales volume estimates for the Cruze, company spokesman Monte Doran did say that the price would be 'competitive' with the Ford Focus, Mazda 3, and Honda Civic.

Reception in the Asia-Pacific and European markets has been strong a "home court advantage" should help propel U.S. sales above the more than 125,000 models already sold overseas, according to Doran.

"Today was a great day for Lordstown," said John Donahoe, the manager of the Lordstown facility. "We want to position ourselves for the demand."  To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 16,979.19 -104.61 -0.61%
Nasdaq 4,453.70 -18.41 -0.41%
S&P 500 1,981.63 -6.35 -0.32%
Treasuries 2.48 -0.03 -1.16%
Data as of 10:18am ET
Company Price Change % Change
Facebook Inc 75.48 0.50 0.67%
General Motors Co 34.94 -0.80 -2.24%
Apple Inc 97.48 0.45 0.46%
Amazon.com Inc 320.53 -38.08 -10.62%
AT&T Inc 35.55 0.05 0.14%
Data as of 10:03am ET

Sections

Rupert Murdoch is merging BSkyB with 2 other satellite TV operators, adding more than $8 billion in cash to pursue . U.S. deals. More

Russia is paying an ever higher price for its growing isolation over the crisis in Ukraine. More

Louisiana is now the top location for motion picture filming, supporting thousands of new jobs and small businesses. More

CNNMoney readers rip managers who micromanage to death, play favorites, throw their staff under the bus and steal credit for their work. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.