GM delays Cruze launch

ROBERT SNELL
The Detroit News

General Motors Co. has delayed the launch of its Chevrolet Cruze small car about three months until the third quarter of 2010 to ensure a flawless launch.

The delay also will give GM time to produce all variations of Cruze models, the automaker said Wednesday. It was not related to any problems associated with earlier Cruze launches in Europe or China, GM spokesman Klaus-Peter Martin said.

The delay comes one month after President Barack Obama visited the Lordstown Assembly plant in Ohio, where the Cruze will be built, and hailed economic recovery efforts that are putting more than 1,000 workers back on the job.

The Cruze is seen as one of the most important new launches for GM since it emerged from bankruptcy court July 10 after receiving about $50 billion in federal aid and shedding billions in debt.

GM is spending about $350 million updating the plant to produce the Cruze, which is expected to get about 40 miles per gallon and help cut reliance on foreign oil.

Until the Cruze goes into production, GM will continue to produce the Chevrolet Cobalt.