High gas prices keep Ion production going, and save a few hundred jobs

GM had planned to end production of the 4-cylinder compact in December. But the world?s No.1 automaker confirmed Thursday that it will continue making the car at its Spring Hill, Tenn., plant at least through March 2007 to meet market demand.

?It gets good fuel economy and it’s affordably priced,? Jim Hall, vice president of industry analysis at the AutoPacific marketing research firm, told the Detroit Free Press. ?It would be foolish of them to get rid of it.?

The Ion’s 2.2-liter engine gets an estimated 24 mpg in the city and 32 on the highway. Its base suggested retail price is $13,060.

GM has sold 60,969 Ions this year, up 2.5 percent from the 59,505 sold in the first seven months of 2005.

The automaker hasn?t said how many of the 5,700 jobs at Spring Hill would be affected by ending Ion production. The decision to keep building it should help GM meet demand for an entry-level car until the Ion’s replacement, a rebranded Opel Astra, arrives in showrooms at the end of 2007, the Free Press said.