GM task force hires consultant

By GINA DUWE ( Contact )   Sunday, Aug. 3, 2008
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— The task force working to convince GM to keep some sort of production in Janesville announced Saturday it has hired a consultant to aid in its effort.

Newmark Knight Frank Consulting, based in New York, started working with the committee late last week by meeting with stakeholders, said Meredith Helgerson, task force staff member who spoke on behalf of the committee’s two chairmen.

Gov. Jim Doyle appointed the co-chairs—UAW Local 95 President Brad Dutcher and Janesville School Board member Tim Cullen—to work with a team of community leaders to explore options for the Janesville GM plant.

The task force plans to present its proposal to GM leadership in late summer or early fall.

“To really wow their socks off, we need to have a very comprehensive, thorough presentation with a lot of data and arguments to persuade the folks in Detroit to retain jobs or production or something in Janesville,” Helgerson said, “and with this unique situation, we needed professionals to help us with that.”

The goals are to retain jobs and production, Dutcher said in a statement.

“We knew hiring an experienced consulting team was the best way to approach this project,” he said.

The task force interviewed “a number of consultants” and the winner was chosen based on its experience, access to industry information and its confidence, Helgerson said.

The firm will use community information, industry data and its experience in strategic location decision-making to put together the comprehensive proposal, according to a news release.

Helgerson said task force members know they need to move quickly, and they anticipate working with the consultant for about five to seven weeks.

She declined financial details on the contract because it has not been signed, she said. The consulting firm will be paid through funds from the city, state, Local 95 and other stakeholders, she said.







reader COMMENTS (43)
BillyDurant
Aug 5, 2008 at 12:52 p.m.
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Unidentified & JasonTh -
I totally agree with you and echo your comments. You seem to get it, along with myself and a couple others on this website, but most are negative about the chances.

Excellent posts!

B.D.

Unidentified
Aug 4, 2008 at 11:11 p.m.
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The Janesville building, or any building for that matter, means nothing to GM. The cost to maintain or revamp a manufacturing facility is minuscule in the grand scheme of producing an automobile. In addition, they can write off the repairs to the GM Janesville facility should they decide to stay here. It boils down to capacity, workforce, location, and taxes. We have the workforce and the location. GM doesn’t need the capacity now, but eventually they will as they switch over to cars from SUV’s. Granted, they are having liquidity problems, but they still have access to roughly twenty billion dollars. This plant hasn’t closed yet and until the for sale sign goes in the front parking lot, I think it is worth the effort and cost to pursue a new GM product here in Janesville.

JasonTh
Aug 4, 2008 at 10:42 p.m.
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The plant may be 90 years old... but some bean counters somewhere must be crunching the numbers. Janesville has the infrastructure, the work force, and the support of government for manufacturing on a large scale.

GM could be holding out for more federal assistance in re-tooling. It seems only fair, Toyota, Honda, Kia, Hyundai, et al, get bus loads of cash to build their non-union plants in economically depressed regions (read: we can pay less to hire the unemployed and make the government build our facilities for us)

GM would do well by holding out a while to get a helping hand. I don't agree with it, but it sure makes good business sense.

mcs
Aug 4, 2008 at 10:27 p.m.
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You bet the city will get a car..after everything shuts down that's about all they'll be able to afford is one car.

mcs
Aug 4, 2008 at 10:23 p.m.
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Lets see now..The city is helping to pay for a consultant for GM...I must have missed the part about funding for LEAR,GILMAN.etc.

JohnDoe
Aug 4, 2008 at 8:50 p.m.
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MOCO....That was my point.
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I was refuting what shorty wrote in his post prior to mine.
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Note that the first line of my post was in "quotation marks" that indicates that I was "quoting" another post...in this case ...shorty's.
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Get it?

wahoo_35
Aug 4, 2008 at 3:19 p.m.
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I agree momo, GM can't afford nor do they need another car factory. GM has too many now. Janesville, as a GM town is done. The sooner everyone comes to grips with this the better off they will be.
I took the buyout, enrolled at Blackhawk and found part-time work. There is life after GM, you just need to move on.

momof5
Aug 4, 2008 at 10:43 a.m.
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So if GM is getting a car, who is paying for the retooling and reautomation of the plant? GM as a corporate doesn't have the financial liquidity to do it and the State is already trimming the fat off of an already lean budget. Maybe the Packers are donating their $20 million bribe to General Motors. Even so, it'd be a very small drop in a very large bucket.

Spanky
Aug 4, 2008 at 8:32 a.m.
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How about a brewery? People when they are down and out tend to drink. Great location for a brewery and we have the agriculture to support the crops needed in beer. It's got a rail support and it's own road to get the product out.

MOC0428
Aug 4, 2008 at 8:07 a.m.
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Johndoe: Just where does the city get its money from???? Taxpayers right?

MOC0428
Aug 4, 2008 at 8:04 a.m.
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What is wrong with the plan that they have? I think what they are doing is great but the city/state should also be looking at other things to bring to the area. Why not do both things at once?

steamie123
Aug 4, 2008 at 3:47 a.m.
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If General Motors has a 15 billion deficit how in the world can anyone even engage the idea that they would be willing to spend hundred of thousands of dollars to re-tool and fix everything that is wrong with the building.

Janesville should save all this money that they are planning on paying the consulting firm and put it in looking for someone or something to take over this plant.

kiowamohican
Aug 4, 2008 at 12:53 a.m.
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Hey; GM only dropped $15.5 BILLION last quarter. Perhaps they need some consulting on how to avoid bankruptcy.
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http://uk.reuters.com/article/ousiv/idUK...
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Or perhaps they should consult Exxon Mobile on how to turn a profit. Now there's a company who knows how to make $$$$$$$!
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http://www.smartbrief.com/news/api/story...
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$11.8 billion in profit turned, and it's considered a disappointment!

Unidentified
Aug 3, 2008 at 11:56 p.m.
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I applaud the task force team hiring a consultant. This is a smart move on their behalf. The consultant has more experience gathering the necessary data needed to put together a good presentation for the meeting with GM. This is Brad Dutcher and Tim Cullen putting their egos aside and doing what is in the best interest of the city by adding more experience to the team. Moreover, for those who complain about the cost of the consultant, I would argue this is the best investment Janesville has made in the thirteen years I’ve lived here and the cost is being split between the Union, City, and State. This is the team putting it all out on the line and doing whatever possible to help convince GM to maintain a presence in Janesville. Although I think this should have happened a month ago, it is great to see nevertheless. We must continue to look at employment alternatives even if GM does maintain a presence here. However, there is little doubt that GM is still an important part of Janesville’s economy and all efforts to keep the automaker here should be exhausted.

OkieFed
Aug 3, 2008 at 10:08 p.m.
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Great the addition of a "consultant" has turned this grandstanding from a waste of time to a waste of time and money.

Consultants are scammers who "propose" a cookie cutter solution for every client. A black hole for money. The only people who hire in and believe in consultants are suits or government blowhards who hope to network themselves into a easy consultant gig someday.

shorty64
Aug 3, 2008 at 9:20 p.m.
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stand to be corrected... Can't wait yo see you in the soup line as I drive by, as I don't work there or live there. Jealously will get you negative people nowhere.

JohnDoe
Aug 3, 2008 at 8:24 p.m.
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"Ignorance prevails again. I don't believe there has been ANY talk regarding this consultants fee being put to the taxpayers."
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Re-read the last sentence..."The consulting firm will be paid through FUNDS FROM the CITY, STATE, Local 95 and other stakeholders, she said.

shorty64
Aug 3, 2008 at 8:12 p.m.
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If you think Sheridan isn't doing his job... I think he's running un-opposed.

shorty64
Aug 3, 2008 at 8:11 p.m.
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Ignorance prevails again. I don't believe there has been ANY talk regarding this consultants fee being put to the taxpayers. All facts need to be heard before these trivial rumors start.Edgerton would love to have a bus. like GM... all they want here are antique shops!!! People need to be a little more caring to their friends and neighbors. The whinners out there sound like jealous babies... makes a grown adult a little sick. What ever happened to caring about your community and seeing it thrive???? I'm glad I can sleep at night.

tallman
Aug 3, 2008 at 4:44 p.m.
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It's not a rumor it's called desparation.

mymaro
Aug 3, 2008 at 4:40 p.m.
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just

mymaro
Aug 3, 2008 at 4:40 p.m.
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Rman4, i also have heard that at work. is this jsut a rumor someone started and it spread so fast or could there be some truth to it?

tallman
Aug 3, 2008 at 4:34 p.m.
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Forgot add, where's Mike Sheridan local 95?? He bailed on you guys like a paratrooper and he's got that nice high paying layed back government job many of you local brothers and sisters worked so hard to help him get. His promise was to go to Madison to keep GM going in Janesville. Ya, right. Hell-o Mike are you out there???? Your district needs to vote his butt out ASAP!!!! So he knows how all of you fellow local 95 members feel.

tallman
Aug 3, 2008 at 4:21 p.m.
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So, we're going to hire another consultant!! WOW is right. We spent at least a million on consulting fees on a new jail. Only to figure that our county cannot afford that new sprawling show place. So, that over a million dollars was a waste. The State has spent millions in the past on consulting fees for all kinds of projects. For instance the University payroll system program. It got scraped after spending millions on it because of arguing between mangement and their arrogance over who was in "charge". Now for the taxpayers and workers to spend a dollar to chase a dime on a obvious dead horse is again simply a waste of money. Government always hires consulting firms so that they can respond if nothng happens or there are mistakes that, "isn't their fault, they followed what the consulting firm advised." parman and the others are correct GM has far bigger problems right now than to even consider spending millions they don't have (as their stocks are heading for the sewer) on a MODEL A building facility.

RMaN4
Aug 3, 2008 at 2:36 p.m.
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Janesville WILL be getting a car. Word is starting to leak out.

I heard the same thing....

mymaro
Aug 3, 2008 at 2:02 p.m.
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way to go JimP. Im so tired of people trying to glorify Toyota.

Yooper
Aug 3, 2008 at 1:47 p.m.
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Janesville WILL be getting a car. Word is starting to leak out.

Zoom
Aug 3, 2008 at 1:47 p.m.
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So, the Governor forms a task force, and the task force hires a consultant, so they can work with the consultant another five to seven weeks before even coming up with a proposal. Show me the costs of this "consultant", and who will be paying for it, please.

biggirl
Aug 3, 2008 at 12:59 p.m.
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I'm behind their efforts. I just wish we had worked collectively with a carrot and a stick approach. I've always been for a threatened boycott of GM products, perhaps via a petition, but I see most people are too passive to try anything of the sort.

garyprimer
Aug 3, 2008 at 12:40 p.m.
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It's a nice effort on the part of the community, but nothing in Janesville is going to "wow GM's socks off". A token gesture, a chance to make some political hay. Are they going to try the "old razzle-dazzle"? The fear now is that GM has bigger problems than Janesville, so even winning them over might be moot.

SarahB
Aug 3, 2008 at 11:50 a.m.
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This is a waste of time. Work toward another solution please!

shorty64
Aug 3, 2008 at 11:18 a.m.
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This is a case of "damned if you do etc" They have to try anything, you can't wave the white flag and give up. Janesville is known for having one of the best workforces in the corp. The few dedicated union officials are trying to the end, and you have to repsect them for that.

cardtrader
Aug 3, 2008 at 11:03 a.m.
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Quit wasteing your time and money this dinosaur is already gone.

1919eternal
Aug 3, 2008 at 10:54 a.m.
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Favre has been re-instated and is on his way to Green Bay now!!!!!

momof5
Aug 3, 2008 at 10:51 a.m.
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I'm all for keeping GM in Janesville. However, I do believe the writing is VERY CLEARLY written on the walls and there are many who are pretending to be illiterate right now. GM has more to focus on right now than "just" Janesville; the company as a whole is in serious financial disarray and jeopardy.
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GM is losing the equivalent to 2 Corvette's AN HOUR in profit/money/liquid assets. If Wagoner isn't careful, GM isn't going to have the capital to pay his year end bonus LET ALONE spend MILLIONS to esentially rebuild Janesville's plant. I'm not being negative or disrespectful to the commission or workforce, just realistic.
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I'm fine with exhausting all efforts to "knock their socks off" in Detroit. However, I would hope that the commission would have a plan B in place--just in case. As little as 60 days from now, GM could be totally gone. Then what? Everyone will be looking around saying "How did this happen. What are we going to do now?" Precious time is being lost focusing on ONE possibility.
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Don't put all your eggs in one basket; especially if the basket is about to have its bottom fall out.

moveon24
Aug 3, 2008 at 10:41 a.m.
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Like, "data and arguments" to retain "jobs or production or something." Those folks at GM will be wowed with that. Yeah, like a consultant to help with something. Like a professional wow.

lmaxie
Aug 3, 2008 at 10:33 a.m.
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SHOW-BOATING!!! This is a waste of effort, time and money, all of which could be better spent deciding what to do when GM packs-up and leaves.

JimP
Aug 3, 2008 at 9:39 a.m.
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Toyota Motor Corp. [TM-N]said its sales fell 12 per cent last month, led by a 27 per cent drop in truck and SUV sales. Sales of its Prius hybrid fell 8 per cent as Toyota failed to keep up with growing demand for the fuel-efficient car.

booch11
Aug 3, 2008 at 9:24 a.m.
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while i agree with some of what parman is saying, the auto industry is not going away.
toyota sales are through the roof.
people are still buying cars -- they're just not buying big cars.
sure, let's bring in emerging technologies, but perhaps retool that plant to fit emerging automotive technologies.

jvldude
Aug 3, 2008 at 8:26 a.m.
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I agree 100%

parman
Aug 3, 2008 at 7:40 a.m.
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Task force to save a dead dynosaur? This is another waste of taxpayer dollars in attempting to resurrect GM's 90+ year old plant. Face it, GM, which is fighting for it's very existence, is in no mood to listen. (If you think things are bad here in Janesville, go to Michigan, where (under the "leadership" of Dem. Gov. Grandholm) there are empty shopping malls, hundreds of idled plants, thousands of homes for sale and unemployment in double digits!)
Why can't our city leaders open their minds to exploring and attracting other opportunities in newer emerging industries? Then and only then will we see a return on our taxpayers dollars.

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