GM has 'specific criteria' for site of small-car plant
JANESVILLE General Motors CEO Fritz Henderson said Tuesday the automaker will consider a variety of factors in determining which idled plant will win small-car production.
Representatives of plants in Janesville; Orion, Mich., and Spring Hill, Tenn., submitted proposals to the automaker Tuesday for the production that's expected to start in 2011.
GM expects to make a decision by the end of June.
The chosen plant is expected to build about 160,000 of the small vehicles each year with a payroll of about 1,200 workers.
Tennessee Gov. Phil Bredesen said last week it's become his impression that up-front cash incentives to GM will trump individual plant merits to determine whether Tennessee, Michigan or Wisconsin builds the new small car.
In a Web chat with reporters Tuesday, Henderson was asked how cash incentives from the states would play into GM's decision and just how heavily those incentives would be weighed against other factors.
"We have outlined 12 specific criteria that will drive our decision, not simply one," Henderson said in response to a question from the Gazette.
Tim Cullen, a member of the local GM retention task force, said Tuesday on WCLO's "Stan Milam Show" that financial incentives are just one of the 12 criteria. He also said GM is considering factors such as plant efficiency, local labor relations, utility costs and the economic impact of the plant on its community.
Cullen would not comment on Bredesen's remark, but said GM officials did not imply to the Janesville group that financial incentives carried any more weight than any of the other criteria.
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Jun 18, 2009 at 3:44 p.m.
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billnewbie, that doesn't really make any sense at all unless you enjoy conspiracy theories. There may be intangible factors, but it's almost certain that the bottom line is money, because that's the largest constricting factor facing GM now and in future.
Jun 18, 2009 at 12:06 p.m.
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Now that GM has declared "bankruptcy" (an old term for a new concept), and the federal government now owns about 3/4 of this newly improved corporation, there is one extra and unnamed criteria that trumps all the others, politics. The plant that will be chosen will be the one that offers the greatest political advantage for the politicians pulling the strings on the marionettes that now makes the decisions at GM. Since Michigan votes for democrats no matter how bad things get on their side of the lake, the only way they'll get the work is if the politicians feel a need to reward their loyalty. Wisconsin is quickly becoming safely democratic as well. So I suspect that the Tennessee plant has the inside track since politically, they are a swing state.
Jun 18, 2009 at 12:03 p.m.
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I can understand the union people being concerned that by buying a non-GM vehicle it takes away their work, but rather than bash people for buying what they want and need why don't they use that energy to get GM to make quality vehicles that the average person wants, needs, and can afford?
Jun 18, 2009 at 11:39 a.m.
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GM begs the federal government for a bailout, and gets it...twice now? And now the state government needs to give them even more money and incentives? I'm not sure who looses or will eventually lose out in this situation, but i can see who wins.
Jun 18, 2009 at 11:25 a.m.
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I would say you got lucky.
http://www.huffingtonpost.com/2009/02/27...
Jun 18, 2009 at 11:25 a.m.
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I own a small business and if I was able to receive a $112,500 cash bump, I could add the three people I want to hire today. But I won't see a dime. Maybe we could give that $135 million to small businesses and see all sorts of growth.
Jun 18, 2009 at 10:25 a.m.
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I have owned 3 GM cars in the last 20 yrs and I have never had any problems with any of them, the one I own now I have had for 6 yrs 70,000+ miles not one problem. You can buy any make and have problems yes even foreign cars have lemons.
Jun 18, 2009 at 10:12 a.m.
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I find it hard to believe I am the reason GM went bankrupt. Selling crap might have something to do with it.....
Jun 18, 2009 at 10:11 a.m.
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I have owned two GM vehicles both purchased new.
Both were very poor quality. Major repairs needed by 40K miles. Bolts missing, electrics not connected,leaking fuels lines and the list would go on and on. I purchased over $47K worth of junk.
Never ever again.
Jun 18, 2009 at 10:03 a.m.
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Draxx's opinion has nothing to do with why GM is in the situation it is in. When the US auto companies feel the responsibility to build the best car on the market only then should the American consumer feel the responsibility to buy it, but they don't, so I won't.......
Jun 18, 2009 at 9:35 a.m.
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hey draxx ur the reason we r in thhe bind we r in. If more poeple bought american made products more americans would have jobs
Jun 18, 2009 at 9:23 a.m.
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I hope the plant gets a "second" chance, but the city of Janesville should definitely realize that they really need to do something about the lack of big business in town. The city really needs to concentrate more on getting a regional or corporate headquarters from a large company so there are more “white collar” jobs in the area. Those jobs pay more and support more business since people have more disposable income. In addition, it would help with the problem Janesville has of kids going to college and moving elsewhere because of the lack of well paying jobs in the area.
Jun 18, 2009 at 8:57 a.m.
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1200 more folks in our community with good jobs = 1200 more folks paying property taxes, eating at our restaurants, shopping at our stores. The community could definitely use the boost, and I think it is worth the estimated $112,500 per job up front. If GM doesn't stay in Janesville, the city is really going to have to look hard to find enough new employers to fill 1200 jobs.
Jun 18, 2009 at 8:03 a.m.
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I think a petition is a great idea. But I also think GM is more about money than people.
Anyone know how to get an online petition going?
Jun 18, 2009 at 7:33 a.m.
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I would not pledge to buy A GM vehicle even if it were the last one on the planet.
Jun 18, 2009 at 6:51 a.m.
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I know that our local economy needs jobs, but it is time to look at the big picture and costs. Our state offered GM $135 million originally to stay in Janesville. Wisconsin has now sweetened the pot. For 1200 jobs, is it worth a minimum of $112,500 per job to our state to get those jobs. Please don't forget that we have already given GM a considerable amount of money to stay in Wisconsin for the past few years. Maybe our state would be better off applying funds to small business and creating jobs that will stay. If we give GM are large sum of money, who is to say that they won't want more in the future.
Jun 17, 2009 at 7:17 p.m.
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Has anyone considered a letter writing campaign? I'm not sure why the citizenry itself has to be so passive. It would undoubtedly make an impact on GM if a huge percentage of the citizens signed a petition or wrote letters. A Petition could be set up online right now, and we could all sign it with a pledge to buy a GM car.
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