There is a myth in the auto industry that auto manufacturers can’t build subcompact cars in the United States because the costs of building the vehicle are just too high. The Honda Fit is built in China and Brazil, the Mazda 2 is built in Japan and Mexico, the Toyota Yaris is built in Japan, and even the Ford Fiesta is built in Mexico, to name a few. General Motors hopes to dispel this myth with one of the only subcompact cars built in America, the “Sonic”. In an agreement between Detroit and the United Automobile Workers (UAW), GM has been building the Sonic in a revolutionary designed plant in Detroit.

Modeled after some of their most efficient plants in Germany and Korea, GM has spent millions to renovate their Orion plant that nearly closed two years ago. Newly trained workers and state of the art equipment offers cost saving efficiency, in house suppliers reduce inventory costs and increase productivity, and the factory itself is one of the company’s greenest. It produces less waste and reduces energy costs by using methane gas from neighboring landfills to power some operation. While renovated factory has been a major factor in cutting costs, an agreement between GM and the U.A.W., allowed GM to cut labor costs as well, reducing the overall production costs significantly.

According to GM’s head of labor relation, “We wanted to prove we could do it and had to proceed with an open mind. The entry-level wage structure was an important enabler, because the smaller the car the less the margin.” The U.A.W. said the union considered the significance of a competitive subcompact to G.M.’s overall product lineup. The Sonic is the first subcompact that G.M. has tried to build in its home market since the Chevrolet Chevette almost 40 years ago, so it is important that the union compromise in order to prevent manufacturing jobs to overseas employers.