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Will the Chevrolet Cruze save GM? Will the Chevrolet Cruze save GM?
(1 day later)
By Kevin Connolly BBC News, Lordstown, OhioBy Kevin Connolly BBC News, Lordstown, Ohio
People in Lordstown are hoping that the Cruze will be a successPeople in Lordstown are hoping that the Cruze will be a success
The stubborn realities of the business cycle do not always sit comfortably with the fidgety rhythms of the 24-hour news cycle.The stubborn realities of the business cycle do not always sit comfortably with the fidgety rhythms of the 24-hour news cycle.
It is in the nature of modern journalism that we tend to look for signs of recession in good times and then impatiently seek signs of recovery when times are bad.It is in the nature of modern journalism that we tend to look for signs of recession in good times and then impatiently seek signs of recovery when times are bad.
The financial crisis and recession of the last few months have seen plenty of that counter-cyclical perversity on display - a number of American commentators, in particular, were looking for signs of a revival in the stock market when the ink was barely dry on the official declaration that we were in recession.The financial crisis and recession of the last few months have seen plenty of that counter-cyclical perversity on display - a number of American commentators, in particular, were looking for signs of a revival in the stock market when the ink was barely dry on the official declaration that we were in recession.
Now though, there are more and more straws in the wind to suggest that some sort of revival is indeed at hand.Now though, there are more and more straws in the wind to suggest that some sort of revival is indeed at hand.
Grassroots AmericaGrassroots America
France, Germany and Japan are out of recession, at least by the narrow definition that says a recession is two consecutive quarters of negative growth.France, Germany and Japan are out of recession, at least by the narrow definition that says a recession is two consecutive quarters of negative growth.
The Chevy Cruze is a catalyst in the success of not only north-east Ohio, but the state of Ohio Tom MockGeneral Motors
And now the International Monetary Fund (IMF) says global recovery has begun - but it attaches a number of important caveats to that cheering prognosis.And now the International Monetary Fund (IMF) says global recovery has begun - but it attaches a number of important caveats to that cheering prognosis.
First, this recovery will not be simple. And second, confidence will return only very slowly to the American consumer market, traditionally one of the great global drivers of prosperity.First, this recovery will not be simple. And second, confidence will return only very slowly to the American consumer market, traditionally one of the great global drivers of prosperity.
So what are those ordinary American consumers to make of all this?So what are those ordinary American consumers to make of all this?
The Chevy Cruze is a catalyst in the success of not only north-east Ohio, but the state of Ohio Tom MockGeneral Motors
Most news organisations, of course, offer plenty of coverage of hard-hit communities and worried families to add a little life to the dry business of business.Most news organisations, of course, offer plenty of coverage of hard-hit communities and worried families to add a little life to the dry business of business.
But the truth is that the lead in economics reporting still comes - for very good reason - from official statistics about output, investment and retail sales.But the truth is that the lead in economics reporting still comes - for very good reason - from official statistics about output, investment and retail sales.
So to try to give a more consistent picture of how the story of bust and (hopefully) boom is being seen in grassroots America, the BBC's World Tonight programme has decided to follow the economic story of the next 12 months or so through the eyes of one group of towns in the United States.So to try to give a more consistent picture of how the story of bust and (hopefully) boom is being seen in grassroots America, the BBC's World Tonight programme has decided to follow the economic story of the next 12 months or so through the eyes of one group of towns in the United States.
We picked an area of north-east Ohio called the Mahoning Valley - not least because its story would be familiar to the citizens of many other industrialised countries too.We picked an area of north-east Ohio called the Mahoning Valley - not least because its story would be familiar to the citizens of many other industrialised countries too.
It became rich in the days when steel and the heavy industries which flow from it did well for America. It then fell into decline as the US found itself undermined in those markets by China (not to mention India and Brazil).It became rich in the days when steel and the heavy industries which flow from it did well for America. It then fell into decline as the US found itself undermined in those markets by China (not to mention India and Brazil).
Towns like Warren and Youngstown know what it feels like to live in hard-scrabble times - but this is not the story of an area without hope. Far from it.Towns like Warren and Youngstown know what it feels like to live in hard-scrabble times - but this is not the story of an area without hope. Far from it.
Capture the moodCapture the mood
This corner of Ohio is also home to the Lordstown General Motors (GM) Assembly Plant. This is the factory GM has chosen to build the new car in which its own hopes for the future are heavily invested - the Chevrolet Cruze, which is due to launch next April.This corner of Ohio is also home to the Lordstown General Motors (GM) Assembly Plant. This is the factory GM has chosen to build the new car in which its own hopes for the future are heavily invested - the Chevrolet Cruze, which is due to launch next April.
The Cruze is a small car (by American standards, at least) but it simply has to have a big future if GM is to have any future at all.The Cruze is a small car (by American standards, at least) but it simply has to have a big future if GM is to have any future at all.
The company will never again be the force in the American economy it once was - there was a time when it employed more than 600,000 people and its welfare and pension programmes made it the largest single healthcare provider in the United States.The company will never again be the force in the American economy it once was - there was a time when it employed more than 600,000 people and its welfare and pension programmes made it the largest single healthcare provider in the United States.
But in economic terms at least, you still cannot spell USA without GM.But in economic terms at least, you still cannot spell USA without GM.
One of the company's managers at the Lordstown Plant, Tom Mock explained it to me in local terms like this: "The Chevy Cruze is a catalyst in the success of not only north-east Ohio, but the state of Ohio."One of the company's managers at the Lordstown Plant, Tom Mock explained it to me in local terms like this: "The Chevy Cruze is a catalyst in the success of not only north-east Ohio, but the state of Ohio."
"The local chamber of commerce has done studies that, for every job that you have here [at the Lordstown plant], it impacts either directly or indirectly 10 additional jobs in this community, whether it's a job at the local university, a job at our local restaurant establishments or retail establishments. That's quite an impact.""The local chamber of commerce has done studies that, for every job that you have here [at the Lordstown plant], it impacts either directly or indirectly 10 additional jobs in this community, whether it's a job at the local university, a job at our local restaurant establishments or retail establishments. That's quite an impact."
So GM simply has to get the Chevy Cruze right - it has to be stylish, economical and somehow capture the mood of the moment because although American consumers are in a cautious, even fearful mood, they can be persuaded to spend if the circumstances are right.So GM simply has to get the Chevy Cruze right - it has to be stylish, economical and somehow capture the mood of the moment because although American consumers are in a cautious, even fearful mood, they can be persuaded to spend if the circumstances are right.
The federal government's "Cash for Clunkers" programme (a $4,500 (£3,000) personal bailout for you when you trade in your old car for a new one) has helped prop up car sales. Lordstown will be stepping up production of the cars it already makes in response to the upturn.The federal government's "Cash for Clunkers" programme (a $4,500 (£3,000) personal bailout for you when you trade in your old car for a new one) has helped prop up car sales. Lordstown will be stepping up production of the cars it already makes in response to the upturn.
It is a direct sign that at least one government programme is working - although critics might quibble with the cost of subsidising private motorists (even ones who do not need the help) to upgrade their rides.It is a direct sign that at least one government programme is working - although critics might quibble with the cost of subsidising private motorists (even ones who do not need the help) to upgrade their rides.
So it is a hopeful omen for Lordstown and the hard-pressed communities which surround it.So it is a hopeful omen for Lordstown and the hard-pressed communities which surround it.
No jobsNo jobs
I should say that no-one I spoke to in Lordstown (where I spent a very pleasant couple of hours listening to a live five-piece band playing Tommy Dorsey classics under the bandstand in the park) felt they could see any real signs of recovery yet.I should say that no-one I spoke to in Lordstown (where I spent a very pleasant couple of hours listening to a live five-piece band playing Tommy Dorsey classics under the bandstand in the park) felt they could see any real signs of recovery yet.
Older members of the audience were worried that their children would be forced to leave home to find work elsewhere in America.Older members of the audience were worried that their children would be forced to leave home to find work elsewhere in America.
Younger ones were concerned that there are few places left in America these days where work is easy to find.Younger ones were concerned that there are few places left in America these days where work is easy to find.
BBC Washington correspondent Kevin Connolly will be returning to Lordstown at intervals over the next few months to report on the impact of the global recession - and to monitor any signs of recoveryBBC Washington correspondent Kevin Connolly will be returning to Lordstown at intervals over the next few months to report on the impact of the global recession - and to monitor any signs of recovery
One man I met, Mike Sullivan, a retired car-worker and union official said that - for all the traditions of militancy within the US car industry - he shared the joy and relief of local GM managers when it was announced that Lordstown had "got" the Chevy Cruze.One man I met, Mike Sullivan, a retired car-worker and union official said that - for all the traditions of militancy within the US car industry - he shared the joy and relief of local GM managers when it was announced that Lordstown had "got" the Chevy Cruze.
When I asked if failure for the Cruze would take the Lordstown plant with it he said simply: "I think it would take GM with it. You need a high volume small car and it looks like Cruze is the one."When I asked if failure for the Cruze would take the Lordstown plant with it he said simply: "I think it would take GM with it. You need a high volume small car and it looks like Cruze is the one."
So the future of the Cruze will be one strand in our stories on the World Tonight from these communities, but so too will be the competition for federal bailout money, the search for jobs - and ordinary Americans' hopes and fears for the future.So the future of the Cruze will be one strand in our stories on the World Tonight from these communities, but so too will be the competition for federal bailout money, the search for jobs - and ordinary Americans' hopes and fears for the future.
For the moment, let us just say this.For the moment, let us just say this.
You might find signs of recovery in the chancelleries of Paris and Berlin and Tokyo or in the pages of an IMF report.You might find signs of recovery in the chancelleries of Paris and Berlin and Tokyo or in the pages of an IMF report.
But it is not being felt yet in the hard-pressed communities in and around the Mahoning Valley.But it is not being felt yet in the hard-pressed communities in and around the Mahoning Valley.
We will see when that begins to change.We will see when that begins to change.
You can hear Kevin Connolly's radio report from Lordstown on the BBC Radio 4 World Tonight websiteYou can hear Kevin Connolly's radio report from Lordstown on the BBC Radio 4 World Tonight website