GM plant to close by year's end
JANESVILLE The final day of production of sport-utility vehicles for Janesville’s General Motors plant will come by the end of this year, sources said Friday.
A glimmer of hope remains, however, that a local proposal to lure some new GM product to Janesville will succeed.
A spokesman in Sen. Herb Kohl’s office said a representative of GM told the senator on Friday that GM plans to end SUV production by the end of this year.
Kohl issued a news release Friday afternoon, suggesting that the final decision had been made. News reporters responded to the release, asking questions that led to the statement by his spokesman. Statements from other politicians followed.
“This is a dark day for Janesville and a dark time for America as the economy struggles,” Kohl said in the news release. “General Motors’ plant has been a central part of the community for generations, and its closing will have devastating consequences.”
Rep. Paul Ryan also issued a statement: “This is obviously disappointing news … I’m encouraged that GM is willing to continue a dialogue with state, local and union leaders, who have offered a comprehensive incentives package to GM to bring another product to the plant.
“It is also critical to note that this news applies to the current product at the plant, not the future of the plant itself,” Ryan’s statement said. “Local leaders have worked tirelessly to secure the best deal possible for Janesville workers, and I will continue to advocate on their behalf.”
Gov. Jim Doyle also reacted: “We are still hopeful that in the midst of the current financial crisis, we can convince General Motors that Janesville is ideally suited for a new product line. I have received assurances from General Motors that any announcement is not a response to the incentive package we delivered to them last month and that they will continue to consider our package.”
Rep. Tammy Baldwin said she had been briefed on a GM announcement that was expected on Monday.
“While I cannot comment on the specifics prior to Monday, I can say that this announcement of a specific date on which production on the current lines of vehicles will cease is a setback for the Janesville GM workers, their families and the entire Rock County community.” Baldwin said.
And from Sen. Russ Feingold: “I know GM was impressed with the work of the Janesville GM Retention Task Force in crafting the package and is currently reviewing the Janesville proposal. I will continue to do all I can to help the people of Janesville through this difficult transition.”
GM spokesman Chris Lee would not confirm that SUV production will end here in December.
“We have nothing to announce at this point in time. When we do, we will tell our employees first, after which we will share that information with the rest of the world,” Lee said.
General Motors announced in June that it planned to end production in Janesville by the end of 2010 at the latest, depending on market conditions. The reasons were a weak U.S. economy and consumers who shifting their preference from trucks to fuel-efficient cars.
A person with knowledge of the company’s plans said Friday that GM is likely to announce further production cuts and speed up its planned closing of plants—including the one in Janesville—as early as next week.
The person, who did not want to be identified because the plans are not finalized, said the cuts likely will hit engine, transmission and stamping operations to correspond with a June announcement that GM would close four truck and sport utility vehicle assembly plants.
The closure dates for those plants likely will be accelerated, the person said. GM announced last week that its Moraine, Ohio, SUV factory will close Dec. 23, and it has said it will idle assembly factories in Oshawa, Ontario; Toluca, Mexico; and Janesville by 2010.
About 1,150 hourly workers at the Janesville plant build Chevrolet Suburbans and Tahoes and GMC Yukon XLs and Yukons.
Rumors have circulated that GM officials will visit Janesville next week and deliver the news that SUV production will end here in December.
For that to happen, GM would have to notify the state 60 days before it ceases production.
Chairman and CEO Rick Wagoner said last month that GM would have to make adjustments, particularly in stamping factories.
Slumping sales and a collapse in its stock price have battered GM.
Further cuts could shore up GM’s share price, which lost nearly half its value this week, plunging to the lowest level in more than 58 years. The shares fell 31 percent to $4.76 Thursday and dropped to $4 in the first minutes of trading Friday before rebounding to $4.99 by midday.
Industry analysts say closing factories or pulling off shifts will help GM cut costs and preserve cash at a critical time with the company losing billions and burning up cash at an alarming rate.
GM had $21 billion in cash and $5 billion available through credit lines at the end of June for total liquidity of $26 billion but has been burning up cash at a pace of more than $1 billion a month.
The company announced a plan in July that calls for cutting $10 billion in costs and raising another $5 billion through asset sales and borrowing through 2009.
Auto analyst Mark Warnsman of Calyon Securities said further production cuts are consistent with what GM and other automakers have been doing all year—cutting factory capacity to match lower sales.
“I think it’s a positive sign that GM is biting the bullet,” he said. “For GM going forward, they’re going to have to use everything available to them.”
The drop in GM’s share price Thursday was fueled by a statement from Standard & Poor’s Ratings Services, which said the “rapidly weakening state” of the global automotive market could push GM’s credit further into junk status, making it even tougher to borrow money.

Oct 13, 2008 at 1:59 p.m.
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ap2533jvl,
You cannot generalize that the only greed comes from corporate. That union of yours is pretty damn greedy too. It is partly because of the greed of your union that Toyota has gained such a large percentage of market share on GM. You can't put 100% of the fault on Detroit. They are by a long shot responsible for a lot the loss in market share, but the union makes them pay for things Toyota doesn't even think about.
Oct 12, 2008 at 7:27 p.m.
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There will be no "merging". The talks are on hold until "markets stabalize", whenever that is. Chrysler doesn't need more manufacturing capacity. They have a factory down the road that isn't even operating at full capacity.
The "merging" talk is just a bunch of smoke to try and stop the share price plunge.
Oct 12, 2008 at 7:03 p.m.
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maybe they could bring in a chrysler product when the two merge.
Oct 12, 2008 at 6:51 p.m.
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Before anyone jumps on me ,yes I can read.The headlines may say CLOSE,but the workers are being told this plant will be idled.It's not over for Janesville yet !!With the deal that was offered to GM to retool this plant they are not that dumb to not give it a hard look and turn the deal down.Remember there's a lot of steel in this plant:).It's my opinion that the workforce will be very different as we know it now,Janesville has gotten a lot of(for a better word)pilot programs.I just think for all that have a stake in this plant ,it's going to work out for all in the end.
Oct 12, 2008 at 6:30 p.m.
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A poster asked, "After GM files bankruptcy, which will allow it to get, rid of its pension and retiree health responsibilities who will pay for the bypass surgeries, the knee replacements, and the chemotherapy? Mercy and Dean better wake up."
Well, it would seem to me that they would have to do what everyone else has to do. There are hardly no employers other than G.M. who pay for retires health care- post retirement.
Oct 12, 2008 at 5:10 p.m.
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I seem to remember the Gazette publishing an article citing research by a UW economics professor back in June when the plant closing was first announced. The professor, using some specialized forecasting software, determined the final job loss to Rock County when GM closed to be around 10,000 jobs--but it was based on a December 2010 closure date. I suspect the hit will be worse, as there is 2 less years to absorb the loss.
Would the Gazette please recontact the good professor for an update?
Oct 12, 2008 at 3:48 p.m.
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Its over.You dont have Kolhl,Ryan,ect.ect..
making press releases not to mention the canidates if it wasnt.
These people dont want to look like idiots.
It was leaked for good or bad and its no use
arguing about it.
Now all your going to get is YES there still loving and looking at are package(Dont blame us we tried)
GM is damn close to bankruptsy and theres no package in the world that will save the Janesville plant.
Oct 12, 2008 at 1:18 p.m.
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Let’s stop pointing fingers and start asking the tough questions. 1) After GM files bankruptcy, which will allow it to get, rid of its pension and retiree health responsibilities who will pay for the bypass surgeries, the knee replacements, and the chemotherapy? Mercy and Dean better wake up. 2) How will retirees be able to survive on social security alone? 3) What will Janesville do with a superabundance of housing on the market, all of it overpriced? 4) Who will pay city salaries when families start defaulting on their property tax bills and city revenues fall far short of those needed to provide basic services? 5) With no middle class left who will be able to afford SUV’s, McHomes, expensive subdivisions, private school, and college? Maybe those employed by the new super Wall Mart and Sams Club? After asking the above questions I’d think about coming up with answers to those questions. It will take a lot of people thinking “outside the box” to address the hard times ahead.
Oct 12, 2008 at 11:49 a.m.
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I can't wait to view the postings on this website a year from now. I am sure all the GM-Haters will be struggling to make ends meat and look upon the good old days when GM was around. If you post anything pro-GM Closing, you are in for a shock in regards to the Janesville economy. Furthermore your $8/hr job won't pay your bills. And if you were lucky enough to get a subprime loan, you will probably be forclosed on because you won't be able to sell your house with all the others for sale.
Oct 12, 2008 at 10:54 a.m.
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GM can accelerate the closing all they want...but they still have to abide by the Wisconsin law and give them 60 days notice. With Ohio closing on December 23 (and GM passing up HUGE tax breaks, incentives and grants) I suspect GM will close Janesville December 23 as well and make that announcement within the next week.
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I hope everyone directly and indirectly affected comes out of this ok. It will take time. :(
Oct 12, 2008 at 8:38 a.m.
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"IT'S OFFICIAL"....That was the headline on the front page of Saturdays gazette. And this is what it takes for the gazette to call it official: "Rumors have circulated that GM officials will visit Janesville next week and deliver the news that SUV production will end here in December." and: "A (un-named)person with knowledge of the company’s plans said Friday that GM is likely to announce further production cuts and speed up its planned closing of plants—including the one in Janesville—as early as next week." That is not "official" if you ask me.
Oct 11, 2008 at 11:04 p.m.
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I worked at the plant, and this how the workers got their information, from reading the Gazette. If you asked the union rep what was going on, all you would get was "we don't know", but the Gazette did. For example, check out the Local 95 website. You would think they would mention something.
Good luck to my fellow workers- maybe I will see you at Blackhawk Tech.
Oct 11, 2008 at 10:04 p.m.
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They're building 3 factories overseas right now- 2 in India and 1 engine plant in Thailand. These are countries where $.50 an hour is standard. Should we work for that? How many more of our benefits should we give away? Ryan working on behalf of GM workers? WHen and where?
Oct 11, 2008 at 9:43 p.m.
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Believe nothing that you hear, and half of what you see! The American people are not affraid of what they know, they are affraid of what they don't know. At this point we don't know alot, let-alone most companies or other people in high places don't know either. Such a sad situation we are in.
Oct 11, 2008 at 9:29 p.m.
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Offer to work for less money. Stop trying (local 95) to rape the company that give you jobs. Are all GM workers really that dumb? Your all going to have a rude awaking when your introduced to wages that most of us uneducated and educated make. Make the cars trucks affordable too there's a concept Factory work is hard work I understand that but what about the rest of Janesville that works for peanuts and make more important product that gas guzzling suvs.
Oct 11, 2008 at 8:35 p.m.
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Face it, the greed of the workers, UAW and GM made this happen. Also, someone please tell the Obama and McCain Wisconsin offices to spare us these pandering press releases written by a 20 year old campaign intern. Both of the candidates could care less about the workers unless it meant getting votes.
Oct 11, 2008 at 8:09 p.m.
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Good greif.................we go from a leaked announcment about GM to 5 million $ middle income to Illegals in less than 25 comments. I'm so impressed. I thought this blog was about the plant closing....... this almost sounds like a .......nope aint gonna go there
hope everyone STAY'S SAFE!!
P.S. I'm sorry for all effected by the soon closing of the plant here in JVL.
Oct 11, 2008 at 7:38 p.m.
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I heard the city of Milwaukee is looking for a police officer to replace the illegal alien from Mexico they were forced to fire after verifying he was indeed an illegal alien from Mexico. Do you suppose the displaced Janesville GM workers could go to Mexico to replace all the illegal aliens taking jobs up here in Wisconsin? Start looking at all the illegals employed in Whitewater, Delavan and Madison.
Oct 11, 2008 at 7:33 p.m.
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lets export 3 million good tax paying jobs and import 3 million people,should work good -ha
Oct 11, 2008 at 6:53 p.m.
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famof5: I agree, it's hard on adults that understand the situation. But for kids? I've been there. My dad was commuting Cleveland to Chicago from the time I was born to the time I was 11 years old. We were finally given the go-ahead as it was FINALLY a for sure thing that he was staying up in Chicago. For 11 years I had to say goodbye to my friends! It stinks big time for kids!
Oct 11, 2008 at 6:52 p.m.
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Just a reminder who seems to think that middle class is 5 million a year income. (McCain said so on his first interview with that church minister).. So when you vote Nov. 4th, think about who is now running this country into the ground and decide if you want 4 more years of this!!!! If 5 mil is middle class, us UAW are really PO FOLK!!!!
Oct 11, 2008 at 6:03 p.m.
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I feel for all the employee's from every company that is affecting. But I feel most for are the children. Our kids had to just say good-bye's to all there friends they have known all there lives because my husband is losing his job. we had to move to another state and it has been very hard on the children. He isn't getting anything from his company that gm had in there. So all you gm bashers just remember it will affect the whole community. Young,old, all ages.
Oct 11, 2008 at 5:11 p.m.
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Quote...“We have nothing to announce at this point in time. When we do, we will tell our employees first, after which we will share that information with the rest of the world,” Lee said.
Once again the GM workers heard it first through the grape vine instead of from their employer because it was leaked.
Oct 11, 2008 at 5:09 p.m.
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This is very sad, but I have to say that the politician that comes out the best about this issue is Doyle, a man who I had hitherto not especially liked. Our federal representatives from Ryan to Baldwin to Kohl (but not Feingold) supported the bail-out. Imagine what that money could have done to help our local communities, whether it was given to development of an effective automobile battery, to improve and maintain our infrastrucutre, or to help bail-out home-owners and thus address the underlying economic basis of the crisis.
Oct 11, 2008 at 4:29 p.m.
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GM employees will have it much easier than others affected by this for the next two years with unemployment and the sub pay. On the other hand, Leer, Allied and all the other companies' employees that depend on GM for business are going to be hurting and many already have been for awhile.
Oct 11, 2008 at 3:29 p.m.
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From what I've read, Cerberus wanted to trade Chrysler's auto operations in exchange for the rest of GMAC (Cerberus currently owns 51% of GMAC). The talks have been ongoing for a year, but are now stalled. This is a non-story.
"The talks have stalled because of the recent turmoil in the financial markets, according to the Journal. Its sources said negotiations could resume if markets stabilize because both GM and Cerberus want to quickly divest the assets under discussion."
http://biz.yahoo.com/ap/081011/gm_chrysl...
Oct 11, 2008 at 1:42 p.m.
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GM has a concept vehicle touring the auto show market. It's called the Cruze. If they would get that car into production, along with the Volt and revamp their big SUVs (aka Orlando--hopefully they ditch the Aztec'esque backend) and add another nicely styled with high quality and dependability gas efficient sedan: they WILL rebound.
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In the interim, we bought 100 shares of the "junk" stock on this premise.
Oct 11, 2008 at 1:04 p.m.
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"What does Chrysler have that GM doesn't?"
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Cash.
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No, I'm not making a quip. GM's cash account is probably going to be zeroed out by the end of 2009 if not sooner. They don't expect sales to improve by then and they have a fixed set of obligations. The cash would come from Cerberus Capital. The end result will probably be a major shedding of nameplates and plants by the combined company.
Oct 11, 2008 at 12:14 p.m.
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Obama will tax these greeedy corporations and bring back jobs to Wisconsin
Oct 11, 2008 at 11:59 a.m.
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Actually, the government just gave the Big 2.8 $25 BILLION in loans to restructure.
Oct 11, 2008 at 11:31 a.m.
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Maybe if Feingold was not the guy that tried to stop the auto bail out Janesville might have had a chance. They in Detroit know who their friends are . GM will make sure they can build Suburbans somewhere else just in case, probably Flint or Pontiac. Loony eco nutty democratcs with their CAFE laws are not blameless in this. Astounding The UAW continues to support these people with members money
Oct 11, 2008 at 11:04 a.m.
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Again, unfortunately for the families, GM WILL be gone by the end of the year.
Oct 11, 2008 at 10:41 a.m.
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christmas is shot this year no more GM and the 27 plus an hour job's are gone
Oct 11, 2008 at 10:24 a.m.
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I have a hard time seeing how a merger would be benefitial to GM. What does Chrysler have that GM doesn't?
Oct 11, 2008 at 8:42 a.m.
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If GM were to merge with Chrysler, reports say talks have been held, that would give GM two assembly plants in close proximity, Janesville and Belvidere. Would that have a positive or negative impact on Janesville getting a new product line? Interesting possibilities.
Oct 11, 2008 at 8:30 a.m.
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You both said it. Sad times and a snapshot of the national economy. Right on the head.
Oct 11, 2008 at 7:57 a.m.
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In the spirit of the misquouted quote of all time, "what is good for America is good for GM".
As America goes, so does GM. It is a snapshot of the national economy.
Oct 11, 2008 at 12:16 a.m.
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Sad times.
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