LANSING, Mich. — U.S. automakers are thinking small. They’re investing in small cars by adding compacts to their lineups, overhauling factories and hiring workers as they prepare for government regulations due in 2016 that will require cars to go farther on a tank of gas.
Even though U.S. small-car sales have dropped lately, hurt by steadier gas prices that followed a huge run-up two years ago, automakers don’t want to be caught without compacts when the new fuel standards arrive.
On Thursday, General Motors said it will add a new small car to its Cadillac lineup, the same day Chrysler said it would invest $600 million in a plant geared for small cars. GM plans to spend $190 million to upgrade its Lansing Grand River plant to build the car, while Chrysler said it will upgrade its Belvidere, Ill., assembly plant to build new cars starting in 2012. Chrysler didn’t say which cars will be built there, but at least one of them will likely be a small car to replace the Dodge Caliber. The Associated Press
