General Motors Co has started regular production of its subcompact Chevrolet Sonic at a Detroit area plant, Kenneth Knight GM head of manufacturing and engineering said, Economic Times reported.
The start of production is a key accomplishment for General Motors and the United Auto Workers union, who agreed to lower worker pay to allow the car maker to make profit on the low-cost sub compact.
The US automaker has produced a limited number of Sonic models at the plant. The sonic will reach full production next year and the plant will also begin producing the compact Buick Verano in the fourth quarter.
General Motors has about 1,750 workers at the Lake Orion plant, of which about 1,600 are hourly employees and represented by the UAW.
Lake Orion is different from most General Motor plants and it has suppliers located on the plant site in an effort to cut costs. Knight said, “It's part of our sub-assembly philosophy, it's part of our lean manufacturing principles."
The Sonic takes the place in the Chevrolet lineup of the Aveo subcompact, which was produced by GM's South Korean auto unit, Daewoo, now called GM Korea.
General Motors Company is the world’s largest automaker producing cars and trucks in 31 countries. It sells and services these vehicles through brands like Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Isuzu, Jiefang, Opel, Vauxhall and Wuling.