The Lansing Car Assembly plant is receiving an extension to build the Chevy Classic through 2005.
GM spokesperson Kim Carpenter says production of the modified version of the Malibu will start next summer.
She adds that the announcement minimizes the gap between the start of the Delta Township Assembly Plant and the shutting down of production of the Malibu.
Employees say this decision eases the concern they have over the potential of being laid off.
Mayor David Hollister says Lansing is currently chasing other products and he's convinced more development is on the horizon.