GM reviewing Janesville plant proposal
Podcast Episode
A proposal to bring production of a small car to the General Motors plant in Janesville is heading to Detroit. Proposals are also due today from a plant in Spring Hill, TN and Orion, MI. Details of the Janesville proposal are under wraps, but may contain proposals for making the plant an efficient producer of the new small car line. GM is expected to make it's decision by the end of June. Kyle Geissler reports. You can read more in Tuesday's Janesville Gazette.
JANESVILLE — A local task force trying to steer small-car production to Janesville was expected to submit its final proposal to General Motors today.
Proposals also are expected today from factions in Michigan and Tennessee, the two other states that have joined Wisconsin on GM's short list to start building fuel-efficient small cars in 2011.
GM has said it will announce by the end of June whether Janesville; Orion, Mich.; or Spring Hill, Tenn., will build the small cars that are not now being made in the United States.
The two plants that don't win the small-car job are expected to become overflow plants in case GM ever needs more truck and car production capacity.
Details are sketchy on each of the three proposals, which were to be e-mailed to Detroit.
Sources close to the situation said the proposals would be comprehensive plans that likely would go beyond the 12 main criteria GM established privately to help choose the winning plant.
Tennessee Gov. Phil Bredesen said last week that it's become his impression that up-front cash incentives will trump individual plant merits in determining whether Spring Hill, Orion or Janesville builds the new small car.
Bredesen said GM was asking for cash incentives that would top the $200 million mark.
He also said Tennessee doesn't have that kind of money to spend and doesn't want any part of a bidding war with the other states.
But Bredesen's also a governor who recently presided over a $557 million incentive package to convince Volkswagen to build a new plant in Chattanooga and staff it with 2,000 new workers.
Representatives of Orion Township in Michigan said last week that they will offer GM $44 million in future tax revenue if it puts the 1,200 small car jobs in Orion.
While all three states are facing severe budget shortfalls, Wisconsin typically has been considered the laggard in the incentive package game. Two years ago, the state came up with a $6 million package to help a company build a distribution center and fill 1,000 jobs in southeastern Wisconsin.
A year earlier, the state made a $12.5 million investment for a project in the Kenosha area that was tied to 2,400 jobs.
Wisconsin also has invested in projects to retain auto industry jobs in both Janesville and Kenosha, including a $10 million package to help retool the Janesville plant in 2005.
Sources close to the Janesville task force said the local proposal has been tweaked since the local plant was put in the running for small car production. The local group made its first presentation to GM executives last fall, long before the automaker tumbled into bankruptcy and closed 16 other plants.
The closely guarded proposal will include financial incentives that include state and local support.
Janesville officials would neither confirm nor deny whether a special, closed-door city council meeting Monday night focused on the city's contribution to the overall incentive package.
The agenda indicates the council was meeting privately for the "purpose of deliberating or negotiating the investment of public funds, or conducting other specified public business."
Some think Janesville might have an advantage because of a local labor contract that's considered a benchmark for domestic automakers.
Gov. Jim Doyle has said UAW Local 95's contract will save GM a minimum of $100 million in operating costs each year. Some observers, however, have said Local 95's contract will be used to whipsaw similar or better union deals in Orion and Spring Hill, making the savings in operating costs transferable to other plants.
The source said the local proposal would go beyond cash incentives and labor costs and focus on ways GM can build the small car more efficiently in Janesville than it can at any other plant.
"We've got a lot of great ideas on how they can operate this plant much more efficiently than they think they can," the source said.
Jun 19, 2009 at 7:01 a.m.
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br---> They are looking at what will cost them the least, I'm pretty sure they do not care who has the highest unemployment.
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TheJoker---> Well you will have that from time to time in a small community. LOL.
Jun 18, 2009 at 3:21 p.m.
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Why doesn't GM just use logic and place the production line at the city with the highest unemployment? I am not sure just which city that is, but GM would look better trying to help out a community that way I think.
Jun 18, 2009 at 2:38 p.m.
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Horselovr, I don't know why people are upset at me. I am just telling the truth and bringing logic and wisdom to this board. Most people are just jealous. I am glad we can entertain you at work!
Jun 18, 2009 at 2:19 p.m.
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did joker say he would leave hannah alone then follow that with his NEXT line asking her a question. lose the r on the name an yer dead on;)
Jun 18, 2009 at 1:33 p.m.
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Noggi--> I was thinking the same thing.
Jun 18, 2009 at 1:26 p.m.
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Shoot, I caught my own grammar. I meant to say "as it GIVES me" not "as it GIVE me". Whoops.
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TheJoker--> I sense that some are rather upset with you. What could you have possibly done to turn people against you? ;)
Jun 18, 2009 at 1:13 p.m.
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LOL. The responses to this article are hilarious. There are always a few "bad apples" in the bunch that ruin it for others. It only takes one person to ruin a reputation, and in this case, it would be the lazy,spine-less, pathetic, very few workers of GM. There are/were plenty of hard working people down there, and if they do decide to bring the small vehicle here, I know that most will be beyond greatful.
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Quit your bickering over things that you cannot change! Or keep doing it, as it give me my daily entertainment while at work.
Jun 18, 2009 at 12:27 p.m.
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chad- " The majority of people DID come to work. Another result of a few making us all look bad."
agree there.
Jun 18, 2009 at 12:25 p.m.
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joker"Look, I have run circles around you before so rather than put you in your place, I will simply leave you alone."
you keep saying that but all you come up with is spelling and grammer. that doesnt scare me I know it is poor. get over it.
Hannah, what do you think of our chances of getting GM back to Janesville?
I dont think it will happen but if it does it isnt a bad thing.
Jun 18, 2009 at 6:33 a.m.
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Where is the sex in this ongoing saga?
Jun 17, 2009 at 10:38 p.m.
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...company...
Jun 17, 2009 at 10:38 p.m.
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Hey Red, owning 60% of a campany that has less than 20% market share is not socialism (controlling the means of production). It's a waste of taxpayer money, but it isn't socialism.
Jun 17, 2009 at 9:35 p.m.
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Joker wrote - Justaguy, I am somebody and do know quite a bit. I think I have proven this over and over on this blog. I also think my personal and professional success shows how much I know. My college degrees and bank accounts also speak for themselves. I will just have to add you to the jealous list.
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Then the joker wrote - So stick to the topic at hand or go away!
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The above doesn't mention the topic at hand joker so go away
Jun 17, 2009 at 9:18 p.m.
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I just love how everyone goes on the attack mode against me. I guess being right does not always make you popular. Please stick to the topic at hand or go away.
Jun 17, 2009 at 9:14 p.m.
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joker: wakeup please and then go back to bed ... as you see no one really cares what you have to say and knows everything you have to say just comes out your a@@ anyways.Your so full of yourself i think you even go for the cr@p you speak.
Jun 17, 2009 at 9 p.m.
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Hannah - forget about the jokester, he is just a legend in his own mind.
As far as shutting down for a Packer game, with the factory running with so little extra people, it only took a small percentage to shut the line down. People make it seem like everyone stayed home. It was only a couple of hundred out of over 2 thousand that caused the problem. The majority of people DID come to work. Another result of a few making us all look bad.
Jun 17, 2009 at 6:37 p.m.
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Joker you may want to use spell check yourself
Jun 17, 2009 at 6:11 p.m.
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Let's think positive and hope that GM comes back to Janesville which will help the greater Janesville economy and atmosphere! It sure would be nice to get good news!
Jun 17, 2009 at 5:27 p.m.
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Hannah, well, looks like someone slept through Spelling and Grammar class! Spell Check is a wonderful thing. I suggest you try it or at least ask someone to proofread your posts. Puncuation in sentences also helps the reader understand what you are trying to say. Or maybe you don't even know what you are saying? Ok, now I get it. Confusion is a scary thing.
Look, I have run circles around you before so rather than put you in your place, I will simply leave you alone.
Hannah, what do you think of our chances of getting GM back to Janesville?
Jun 17, 2009 at 4:08 p.m.
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joker"I have great sources and I also am a key figure in this community."
doubt it- again we dont like you here with your pompas attitude and if youre so great why dont you tell who you are.
"Justaguy, I am somebody and do know quite a bit. I think I have proven this over and over on this blog. I also think my personal and professional success shows how much I know. My college degrees and bank accounts also speak for themselves. I will just have to add you to the jealous list."
again nobody cares how much money you have if youre a jerk- money doesnt prove success in life. When will you understand this??????? MANY other things do.
Jun 17, 2009 at 4:04 p.m.
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I think it would be great if they came back JUST to prove you wrong AGAIN.
Jun 17, 2009 at 4:03 p.m.
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joker"Diplomat, I don't spread rumors and gossip on this site. I spread incredible insight, logic and the truth. I have great sources and I also am a key figure .."
I beg to differ.... the big box store (whichever one you are talking about.. you changed your story on that too as to WHICH box store) anyway theyre all still open still.
This is the one that I remember most and you still deny saying it.
Jun 17, 2009 at 4 p.m.
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funny i hear two different stories of the previous work forse- some say jvl had the best and good attandance then I hear theyre the worst and shut down to watch a packer game WOW tape it priorities NOT!
Jun 17, 2009 at 3:57 p.m.
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can we layoff these stories and WHEN they get it IF they do let us know.
Jun 17, 2009 at 3:23 p.m.
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+1 Skiddz I think it's absolutely insane that a failed corporation and failed business model, after being bailed out by protesting taxpayers are now in the position to hold those same taxpayers hostage by demanding millions of dollars in tax breaks and concessions before they reinvest our money in our communities. It's a joke and the company has been a joke for decades.It's no wonder why when one walks out into the parking lot of the company I work for and see half the cars are foreign.......That money should have gone to fresh upstarts that have drive, innovation and ambition--not a management and union structure that has been a miserable failure for decades. Saving GM in no way redefines America nor symbolizes the "change" that everyone was hoping for..... embarrassing would be the best way to describe it.......
Jun 17, 2009 at 3:08 p.m.
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Until we here a final announcement either way, this is all here say and regurgitation of old news. There is no downside to GM choosing Janesville. Our tax money has gone to help bail them out and we might as well benefit directly from it. I don't see a plan B on the table anywhere and the local job market continues to deteriorate. At this point a 14 dollar an hour job with lousy benefits would be a huge step above the current local offerings. One would have to be a buffoon not to welcome GM back to Janesville.
Jun 17, 2009 at 2:52 p.m.
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Hey heres is a idea.... Lets not give bail out money to GM when the American public already decided they don't want the company, by not buying their products. And why don't we take ALLL that money we have used to bail out all the autocompanys and spend it on retooling the GM plant to make highspeed trains, the tracks, solar panels, wind turbines, any green energy production. I bet then all that money we spent would ACTUALLY go to the working man and not the company that jsut let him go. Then jo shmo on Wright Rd. or Ruger can still have his job, we will keep our industrial infistructure, and be producing green products to make it so our country produces alot more free engergy which in the long run will save us money and keep our jobs... But there I go again thinking for myself, I have to remeber in a socialist nation you are not allowed to think for youself, you are supposed to let the gov. think for you..
Jun 17, 2009 at 2:49 p.m.
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Justaguy, I am somebody and do know quite a bit. I think I have proven this over and over on this blog. I also think my personal and professional success shows how much I know. My college degrees and bank accounts also speak for themselves. I will just have to add you to the jealous list.
Jun 17, 2009 at 2:49 p.m.
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After all the horse trading that is going on behind the scenes, this is what will ultimately happen to 1000 Industrial Avenue: http://www.youtube.com/watch?v=u4eABh6af...
Jun 17, 2009 at 2:23 p.m.
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GM doesn't need to sell their products to generate a profit. They just close plants then demand millions and millions of dollars from the government to reopen them. When other organizations engage is coercive behavior it is called extortion and racketeering. When GM and our government do it is called socialism. If Janesville reopens the comrades will be working for socialist party wages and socialist benefits. Maybe Russia will go capitalist.
Jun 17, 2009 at 2:07 p.m.
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Which state has more electoral votes and which state may tilt the other direction in 2012 if it doesn't recover economically?
That state will get the plant--the UAW and the party currently in power in DC will see to that.
Jun 17, 2009 at 1:49 p.m.
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Let's just suppose GM decides to make those small cars right here in The Burg. OK, fine. What if they don't sell?
Jun 17, 2009 at 1:45 p.m.
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Well, Joker, no one can accuse you of modesty, can they?
Jun 17, 2009 at 1:34 p.m.
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Here's the joker acting like he's somebody again and knows it all .... while knowing nothing. I wonder why he calls himself the joker hmmmmm
Jun 17, 2009 at 12:42 p.m.
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The three prospective sites need to get together and make one Michael Corleone statement to GM: "Our offer to you is this: Nothing. Not even the price of job training, which we would appreciate that you pick up personally."
Jun 17, 2009 at 12:25 p.m.
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Diplomat, I don't spread rumors and gossip on this site. I spread incredible insight, logic and the truth. I have great sources and I also am a key figure in this community. Most important, my information is correct. Don't compare me to LostCity.
Jun 17, 2009 at 12:02 p.m.
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janesville will get it. the fix is in. obama stopped here on his campaign trip and as we all know, wisconsin is a suburb of chicago. the fix is in. but, don't quit school or your part time job in retail just yet.
Jun 17, 2009 at 11:38 a.m.
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Thekid, don't be ridiculous. He's obviously pulling our leg. We all know if they were going to put an ocean in Janesville it would be on the East side or North side, since the West side never gets anything in this town.
Jun 17, 2009 at 11:23 a.m.
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Chad: follow the advice you gave me a while back....stop talking all logical and stuff! Lol!
Jun 17, 2009 at 10:40 a.m.
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hey miltonalum hit me up when you list that property. i love the ocean but would rather not relocate right now. thank you;)
Jun 17, 2009 at 10:39 a.m.
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G.M. is holding Janesville,uaw95,state of Wi. hostage. Only concern for gm is "show us the money". IF politicans did'nt demand that the new line be built here in America,GM would be building over seas.ENOUGH......Lets hold our elected officals (at all levels) to bring other industries,jobs to Wi.If the state can use federal money($7 million) for job centers(requiring unemployed to atend "seminars",or lose benifits Wi. State Journal 06-16-09)Surely they can find work for us.
Jun 17, 2009 at 9:55 a.m.
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TheJoker,
"LostCity, I just heard that you do not know what you are talking about. Quit spreading rumors and lies. I also suggest you quit drinking. No wonder you are lost."
I think he learned it from you.
Jun 17, 2009 at 9:54 a.m.
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Well at least GM isn't drawing this thing out too bad. Getting a decision by June is good so people can decide if they need to move or not.
Jun 17, 2009 at 8:41 a.m.
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So, after giving (yes, giving) GM billions of tax dollars so they can continue to play car company, now we are forced to beg them for jobs. Well, that sucks...
Jun 17, 2009 at 7:07 a.m.
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If it could happen, here has a better chance than anywhere else. Janesville. This community can build the highest quality vehicles more efficiently than anyone. Good Luck Team!
Jun 16, 2009 at 11:09 p.m.
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LostCity, I just heard that you do not know what you are talking about. Quit spreading rumors and lies. I also suggest you quit drinking. No wonder you are lost.
Jun 16, 2009 at 10:23 p.m.
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"General Motors’ Orion, Michigan plant could be the frontrunner to build the automaker’s forthcoming U.S.-made small car as Orion Township has pledged $44 million towards the effort.
In addition to the $44 million offer, Orion Township is also offering GM a 100 percent tax break on all new equipment and machinery for 12 years. The Michigan Economic Growth Authority will likely sweeten the pot with grant money."
http://www.leftlanenews.com/orion-offers...
Jun 16, 2009 at 9:47 p.m.
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I also just purchased 300' of oceanfront property on the west side of janesville, It will be for sale soon.
Jun 16, 2009 at 9:08 p.m.
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I just heard that GM has picked Janesville. The state will help offset the costs of building a stamping plant and new paint department. Other factors were the labor agreement and GM wanted to keep the history of this plant going. There will be a news release soon.
Jun 16, 2009 at 9:05 p.m.
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OMG people- stop whining about GM!! Like someone wrote earlier- some of you people are not happy either way!!! I hope GM chooses Janesville!
Jun 16, 2009 at 7:07 p.m.
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Kind of sucks if the guy working at Burger King making meager wages has to subsidize wages for GM workers. I know this has alway's gone on to some extent. Really wonder if it's better for our community not to get the GM factory going again?
Jun 16, 2009 at 7:01 p.m.
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Ummmm.. Bart? With all the people laid off that would return if there were jobs, that sounded even more retarded than usual.
Jun 16, 2009 at 5:02 p.m.
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Here goes our taxes
Jun 16, 2009 at 4:49 p.m.
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Wow - people complain when GM doesn't make a profit. Then they complain when they try and be profitable. Isn't that what a company is supposed to do?
Then Bredesen is positioning himself for them not getting the work, but it isn't because of the money. Pure politics, he didn't have any qualms about dishing out cash to the other car companies. Maybe he should get Henderson all liquored up, take some compromising photos, and blackmail him like in the good ol' days.
Jun 16, 2009 at 4:29 p.m.
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I wonder how much cash, if any, was offered to GM? I have little faith in this task force and if they are hanging their hat on the assumption that GM will save all kinds of money by using Janesville's work force, then we are doomed. This claim of $100M in savings if Janesville is picked is utter nonsense and is pure speculation. The other 2 plants can make the same arguments.
GM is a business and they only care about profit! Money, money, money!! How to make it and how to make it quick. They do not want false promises from Doyle or any other governor. They want cash up front and a clear path to making a profit.
Jun 16, 2009 at 4:21 p.m.
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its only news because GM is dangling bringing the production back to Janesville so that other plants will step up and offer something close to what janesville has for labor agreements and tax incentives. We are just a pawn in a larger game. There is no way they are coming back. No stamping plant and it is way to far from other plants for stamping parts. Sorry to dash everyone's hope. But...IT'S OVER!
Jun 16, 2009 at 4:09 p.m.
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Is this REALLY news? This same story has essentially been in the media/Gazette for about 2 weeks now. There is absolutely no new information in this article. I think I sense a little pot stirring here.....
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