GM to Invest $200 Mln to Refurbish Plant To Build New Saturn

DETROIT August 26, 2004; Reuters reported that General Motors Corp. said on Thursday it plans to invest $200 million in one of its Kansas plants, equipping it to assemble a new Saturn mid-size car that replaces the slow-selling L Series.

Saturn decided to end production of its L Series mid-size car this summer, a year ahead of schedule. The car has been a disappointment since it was launched in 1999.

The new Saturn car, which will be available as a 2007 model, will be built in GM's Fairfax manufacturing site in the latter half of 2006.

The plant, which employs about 3,000 people, currently builds the Chevy Malibu and Malibu Maxx.

GM said it plans to use the money for upgrading machinery and retooling the plant for the production of the new car.

Sales for Saturn, key to GM's efforts to fight Asian rivals, fell nearly 22 percent to 136,166 vehicles through the first seven months of this year.