General Motors will invest $500 million to build its new compact car in the US, the Detroit News reports. The Chevrolet Cruze, expected to get about 45mpg, will go into production in 2010 in Lordstown, Ohio. The ailing automaker, once heavily reliant on SUVs, continues to alter its production line to meet demand for small, fuel-efficient cars. GM's US sales are down 18% this year, led by a 23% decline in truck sales.
The Cruze will be bigger than the Chevy Cobalt but smaller than the Malibu. GM plans to phase out the Cobalt once the Cruze is in full production. The sticker price is expected to be well above the $15,000 base price of the Cobalt, the Wall Street Journal notes.