GM plant goes rom gas guzzler to sub-compact

It’s a Labor Day success story in the heart of the nation's auto industry.

A General Motors plant that once produced gas guzzlers has been reborn as the only sub-compact automobile factory in the United States.

Brad Glendee was working at a GM plant in Wisconsin in that was about to close in 2008.

So he moved his family to Michigan and transferred to GM's Orion plant.

Before he knew it, the Orion plant shut down too, and Glendee was out of work for six months.

"There was a lot of uncertainty at that point and I just had to keep my fingers crossed and hope that the leadership was making the right decisions."

One big decision: Investing more than $500 million to completely retool the Orion plant to do something that GM hasn't done in more than two decades-- produce a subcompact car in the united states.

About 1,500 oOion employees are back building the Chevrolet sonic, set to hit showrooms this fall.

The plant was completely gutted and redesigned to save half-a million square feet of floor space, allowing suppliers to operate closer to the assembly line.

Energy efficiencies will also help loosen the tight profit margin among cars selling for less than $15,000.

Another cost savings: A controversial agreement with the United Auto Workers tied to the federal government's massive bailout of GM and Chrysler.

It's a two-tiered labor agreement permitting newly hired workers to be paid $14-to-$16 an hour, about half what GM veterans make.
But that two-tiered wage system remains controversial among some in the UAW. In fact, that very issue is on the table right now in negotiations over a new uaw contract. Those talks are expected to wrap up later this month.