GM begins Chevrolet Sonic production at suburban Detroit plant

General Motors Co. today launched production of the 2012 Chevrolet Sonic subcompact at its Orion Township assembly plant in suburban Detroit.

The Sonic will be available in dealerships this fall. It is the only subcompact manufactured in the United States.

Speaking at the conference here, Kenneth Knight, GM executive director of global and North America manufacturing engineering, joked that the launch must be going well "because my phone isn't ringing off the hook."

Knight declined to specify how quickly the plant will ramp up 2012 Sonic production to full line speed.

He said Orion has the additional challenge of starting production of the Buick Verano compact in the coming months. The Verano is the sister vehicle of the Chevrolet Cruze made in GM's Lordstown, Ohio, assembly plant.

Logistics also are more complicated at Orion than other GM North American plants, Knight said today on the sidelines of the conference.

A higher percentage of parts is being imported because the Sonic's architecture was developed in South Korea, he said. That means GM must consider that inventory and supply line when making manufacturing changes at the plant, he said. Over time, more of that parts manufacturing will be shifted to North America, he said.

Chevy Sonic engines initially are being imported from Mexico and South Korea, Knight said.

Orion started production with about 1,750 employees.

GM was able to bring 2012 Sonic production to the United States because of a unique labor agreement with the UAW. That agreement calls for 40 percent of hourly workers to be entry-level Tier 2 workers earning about $14 an hour in wages or half that paid traditional UAW members.

Orion also has less than 100 skilled-trades workers vs. 230 when the plant built the Pontiac G6 and Chevrolet Malibu sedans about two years ago. The plant also has the highest percentage of supplier employees working under roof than any other GM plant. They earn an average of about $10 an hour in wages.

By David Barkholz- Automotive News