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GM to build midsize Saturn
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August 6, 1996: 3:43 p.m. ET
New car to compete with Accord, Camry
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NEW YORK (CNNfn) - General Motors Corp. said Tuesday that its Saturn division will go forward with building a midsize sedan, in response to current Saturn owners' requests for a larger car. It will go on sale in 1999.
The new car, known as Project Innovate, will be based on the Opel Vectra which GM makes and sells in Europe. It will hold a 2.2 liter, 4-cylinder engine.
GM plans to build the new car at its Wilmington, Del. plant, which had been slated for closing. Saturn's three current models, a small sedan, a station wagon and a coupe, are all built at the Saturn complex in Spring Hill, Tenn.
Saturn dealers have been asking for years for a larger car that Saturn owners could trade up to. The new sedan will compete with midsize imports, such as the Honda Accord and the Toyota Camry.
But there are worries within GM about whether the new Saturn will take away buyers from other GM midsize cars, such as those offered by Oldsmobile.
"If I was at GM, I guess my concern would be, who would this steal sales from?" said James Harbour, an industry consultant. "You've got all kinds of GM midsized cars. The question is, will this come out of Honda's hide and Toyota's hide? It all depends on how it's executed."
The UAW is pleased with the decision to build the new car in Wilmington instead of closing that plant. "This is good news for the 2,600 members in Local 435 and the Wilmington community, said Richard Shoemaker, UAW International vice president and director of the UAW-GM Department.
From staff and wire reports 
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Saturn
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