updated 6/26/2009 1:22:16 PM ET 2009-06-26T17:22:16

General Motors Corp. confirmed Friday it will use an idled assembly plant in Orion Township, Mich., and a parts stamping facility in Pontiac, Mich., to build small and compact cars, a move expected save 1,400 jobs.

The decision is dependent on the outcome of negotiations between the company and the state on incentives, GM said in a statement.

A person briefed on the decision told The Associated Press on Thursday that Orion Township, about 40 miles north of Detroit, had been chosen.

The plant beat out plants in Spring Hill, Tenn., and Janesville, Wis., for the work.

GM says the Orion assembly plant is expected to be retooled and run on two shifts, building 160,000 vehicles annually.

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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