• Detroit Free-Press, Friday, August 22, 2008 10:45 AM

General Motors chairman and CEO Rick Wagoner gave the public its first peek at the design of the Cherolet Cruze -- bigger than the Cobalt it replaces, but smaller than the midsize Malibu -- Thursday when he announced that the company is investing $500 million in the U.S. to build the vehicle. GM displayed a foam show model sprayed with a special coating to make it look like a real car. It plans to officially unveil Cruze at the Paris auto show next month.

Wagoner says GM will begin production of the Cruze at its Lordstown, Ohio, small-car assembly plant in April 2010. It will debut in Europe next spring. The car was designed and engineered by global teams in GM's Europe, Asia Pacific and North American regions.

The Cruze is expected to get close to 40 m.p.g. "We're targeting having the best fuel economy in the small-car segment," says Ed Peper, GM North America vp of Chevrolet. Wagoner believes it will fill a need in the market that will continue to be in high demand. "We think the change in consumers' minds is structural," he says.

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