New line of taxis could be built at AM General

by Sarah Rice (srice@wsbt.com)

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Standard Taxi to be built at AM General in Mishawaka

The Vehicle Production Group of Troy, Mich. is working on a deal that would involve the production of a new line of the "Standard Taxi" at AM General in Mishawaka. Pictured is an old prototype of the Standard Taxi. (Photo courtesy Vehicle Production Group)

By Beth Boehne

Story Created: Jul 11, 2008 at 10:43 AM EST

Story Updated: Jul 16, 2008 at 10:18 PM EST

MISHAWAKA — There is big economic news in the works involving AM General. A Troy, Mich. company says it's working on a plan to build a brand new line of taxis at the Mishawaka plant.

The vehicle is called the Standard Taxi, and it is described as an urban taxi.

It will have a ramp, making it more accessible for people in wheelchairs. It will also have more room and is low to the ground.

The Vehicle Production Group announced the agreement with AM General last December. According to VPG's website, they chose AM General for a number of reasons including its excellence in building vehicles and procuring parts.

Craig Mac Nab, a spokesperson for AM General, confirms a deal is in the works.

"The last I heard it was almost set, but not quite," he told WSBT News. "If the rest of the business comes together, we will be the guys that make the vehicle."

Mac Nab also said it's too early to speculate if the contract would mean adding more jobs.

If the deal is made, production would start next year in the H2 plant. It would not affect production at the Humvee plant.

There have been rumors AM General could lose their military contract because they're in competition to develop a new military vehicle. A spokesperson says the contract runs through next year and they'll have another contract after that.

The new military vehicle would be in addition to the existing Humvee production.

The future of General Motors' Hummer H2 is not as certain. Rising gas prices have been crippling sales in this country for the last several years. GM closed Thursday at its lowest share price since 1954, and they are considering selling the Hummer brand.

However, that's not the case overseas. General Motors reports sales are up 21 percent in Russia, and it had record sales in Europe for the first six months of this year.

Reporter Sarah Rice will have more on this story on WSBT News at 5 p.m. and 6 p.m.

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