As GM says it will close 14 plants, it saves one to build a small car -- not China

In announcing it bankruptcy plans today, General Motors saved one bit of good news amid all the carnage. It officially confirmed what it and the United Auto Workers union hinted at last week: it will build Gmlogopg-vertical a small car in the U.S. It's a reversal from GM's previous plans to build the small car in China and import it into the U.S.

The announcement appeared to be designed to take a little of the edge off of the main announcement, the closing of 14 plants and idling thousands.

"This new small car will play a vital role in GM’s plans to improve the fuel efficiency of its vehicle fleet. Small cars represent one of the fastest growing segments in both the U.S. and around the world. The re-tooled assembly plant will be capable of building 160,000 cars annually. Selection of the site will be determined in the future," GM said in a statement.

Small cars typically sell for the smallest prices, making them barely profitable for Detroit automakers, whose costs are generally higher than import brands. GM's smallest car at present, the Chevy Aveo, is imported from South Korea.