Manufacturer may not have looked at Janesville GM plant
Photo
The fate of the GM assembly plant in Janesville will likely hinge on who controls the plant’s 4.8 million square feet and 250 acres.
JANESVILLE — It’s unlikely Fisker Automotive gave much thought to building plug-in hybrid cars at the shuttered General Motors assembly plant in Janesville.
But the company’s decision to buy an inactive GM plant in Delaware certainly didn’t go unnoticed by those concerned about the future of the 4.2 million-square-foot facility on Janesville’s south side.
Fisker will pay $18 million for the GM plant in Wilmington, Del., that until this summer produced the Saturn Sky and Pontiac Solstice roadsters. Fisker recently won approval for $528.7 million in government loans to develop plug-ins and expects to spend another $175 million to refurbish the facility before production of next-generation hybrids begins in 2012.
Fisker expects the plant will create 2,000 factory jobs and more than 3,000 vendor and supplier jobs by 2014, with full production capacity of between 75,000 and 100,000 vehicles per year. More than half the cars will be exported.
James Otterstein, Rock County’s economic development manager, said he wasn’t aware of any direct Fisker interest in the Janesville plant, which ended sport-utility vehicle production last December and medium-duty work in April.
That’s not unusual, he said, because companies often use third-party consultants to narrow possible sites. Otterstein said he’s fielded a half-dozen inquiries on the plant, but he and other local officials rarely learn the identity of the prospective end user.
While local officials continue to work on the future of the Janesville plant, many local GM employees are working on their own futures.
The payroll at the Janesville plant included 1,926 hourly workers as of June 1, 2008. Since then, 46 percent of the workers have left GM under early retirement and buyout programs, and another 28 percent have transferred to other assembly plants. About 500 people remain laid off, GM officials said.
Fisker officials said it’s not immediately clear whether former GM workers in Delaware would be given priority status at its new operation.
They did say the Wilmington plant’s modern paint operation and its proximity to sea ports were important factors in buying the Delaware facility, particularly in light of the company’s export plans.
The fact that Vice President Joe Biden is from Delaware probably didn’t hurt Wilmington’s chances, either.
In a Janesville versus Wilmington competition—if there ever was one—the Delaware plant was likely more attractive because it is part of the “bad” or “old GM,” while the main Janesville plant is part of the “good” or “new GM.”
After emerging from bankruptcy this summer, the automaker’s good assets were transferred to the New GM Corp., which changed its name to General Motors Co.
Undesirable assets from the former GM Corp. were packaged into a company called Motors Liquidation Co.
Fisker is buying the Wilmington plant from Motors Liquidation Co., a conglomeration of assets that will be sold to the highest bidder under court supervision. The old GM will remain an entity until all of the facilities are sold off, a process that could take months or years.
As part of the “new GM,” the Janesville plant is considered in standby status and could be retooled should GM need more production capacity.
Whether that happens remains to be seen, but several sources have said the Janesville plant is essentially locked up until GM and the United Auto Workers reopen their national contract in 2011.
It is possible, however, that GM could entertain a specific redevelopment proposal for the property before the current contract expires. For that to happen, sources have said, the proposal likely would have to include a UAW workforce.
“The plant will remain on ‘standby status’ through the life of the agreement unless the parties agree to do something different,” said GM spokeswoman Kim Carpenter.
While the main plant was kept as a “new GM” asset, he said, the automaker’s training center across Jackson Street went to Motors Liquidation Co.
Nov 10, 2009 at 1:28 p.m.
Suggest removal
I agree with previous posters. Doyle ruined any chances of us seeing any businesses open up in our once great state.
Nov 10, 2009 at 1:57 a.m.
Suggest removal
I still think Obama should keep his promise and close down the Guantanamo Bay prison. Once they do that he can sign an executive order to move the prison and it's detainees it to his old stomping ground from the 2008 campaign trail......Janesville GM baby!
Nov 10, 2009 at 1:24 a.m.
Suggest removal
I don't think everyone on welfare is a degenerate and to make that broad statement is quite ignorant and rude. And no I am not nor ever been on any form of welfare.
Nov 9, 2009 at 3:35 p.m.
Suggest removal
I dont recall GM saying that there Janesville plant was for sale,till then dont print articals like this dumb artical.
Nov 9, 2009 at 1:47 p.m.
Suggest removal
Red,
You can get your government bailout. It's called welfare. You just pretty much have to become a degenerate though, but the taxpayers never think they will get their money back from welfare.
Nov 9, 2009 at 1:19 p.m.
Suggest removal
why would anyone want to buy property, that is a toxic dump , in a swamp. these people did their homework.
Nov 9, 2009 at 1:16 p.m.
Suggest removal
Why does the Gazette do this? Is it that slow of a news day? Good grief. Find something in Walworth County to write about in JANESVILLE Gazette, why don't ya!
Nov 9, 2009 at 1:04 p.m.
Suggest removal
Thank you for the good wishes everyone! No, I am not a GM hater. I am lover, not a hater.
Nov 9, 2009 at 12:26 p.m.
Suggest removal
earth shattering story....2 minutes of my life ill never get back...
Nov 9, 2009 at 12:23 p.m.
Suggest removal
If GM does not plan to pay back the taxpayers for the bailout they recieved then the government should seize an equal amout of property.
Nov 9, 2009 at 11:32 a.m.
Suggest removal
Could it be that they didn't look at Janesville because...oh I don't know...THIS PLANT ISN'T FOR SALE?!?!
Nov 9, 2009 at 11:13 a.m.
Suggest removal
"Zoom is right. The guys who started Fisker are coastal "sophisticates", we're just fly-over for them."
No, they wouldn't pick the midwest because more than 50% of their cars will be exported. There is no reason to truck more than 50% of the cars to one of the coasts for export, when they can just build them there. That's why this is a non-story.
Nov 9, 2009 at 10:25 a.m.
Suggest removal
There just weren't enough hours in the day for local officials and unions to lobby for Janesville. Plus Mike Sheridan and the UAW were to busy putting their "hurt" on Woodman's.
Nov 9, 2009 at 9:05 a.m.
Suggest removal
I will NEVER buy another GM product EVER until I get my government bailout. Until that day GM is on my blacklist. GM should have been allowed to fail like the losing comany it is. Based on their past performance I have absolutely no cofidence there is any future in GM. Just ask all the former and retired employees what all that GM stock they bought is worth now.
Nov 9, 2009 at 5:40 a.m.
Suggest removal
Zoom is right. The guys who started Fisker are coastal "sophisticates", we're just fly-over for them.
.
But I wouldn't waste tears over this. Fisker is a risky start-up that could easily fail. Their projections of 2000 workers and 100,000 cars per year are wildly optimistic.
Nov 9, 2009 at 12:25 a.m.
Suggest removal
I don't know about taxes in Wilmington, Delaware vs Janesville, Wisconsin, but I Googled the Delaware plant's age and it was built in 1947. Possible environmental cleanup costs may have played a part in their decision.
Nov 8, 2009 at 11 p.m.
Suggest removal
The willingness of the City of Janesville,Janesville School Board,and the Rock County Board to raise tax levy with out a real need is the reason this area will not be considered for future employers.
These are large investments Corporations are making when locating to a area. They do deep research, and I do not have to tell you if you have read, any articles concerning local tax levies. This area is very unstable because of the tax, and spend people with out reguard to the effects.
Nov 8, 2009 at 9:44 p.m.
Suggest removal
This is a total non-story.
Nov 8, 2009 at 9:15 p.m.
Suggest removal
I heard that Arlington can't keep up with demand and that GM is looking at bringing back first shift at the start of the new year.
Nov 8, 2009 at 8:53 p.m.
Suggest removal
Bring up GM and the joker crawls out from under his rock. The true GM basher/hater.
Nov 8, 2009 at 7:51 p.m.
Suggest removal
I have to say that the percentages, which aren't too clear since they used percentages AND REAL numbers in the article, is that those percentages seem to paint a good picture of the fact that GM employees are not part of the larger picture of unemployed in Rock County.
Our unemployment numbers in Rock County are, in plain English, the residual companies like LSI and the ones that provided GM with supplies.
Nov 8, 2009 at 5:53 p.m.
Suggest removal
welcome back joker long time no see......LOL
Nov 8, 2009 at 5:36 p.m.
Suggest removal
Joker is at it again folks.
Nov 8, 2009 at 5:17 p.m.
Suggest removal
Non-story. Fisker would not have considered ANY plant in the midwest. Is this going to be done every time someone buys one of GM's many closed plants?
Nov 8, 2009 at 5:13 p.m.
Suggest removal
GM in Janesville is history. That is why they are adding 3rd shifts at the plants that are already producing vehicles. It is in their best interest to utilize the capacity in those plants first. It costs a lot less to add people than to retool a closed plant. Simple economics.
Nov 8, 2009 at 4:53 p.m.
Suggest removal
Uh ... it doesn't mean anything. We already knew that GM was retaining the plant for possible future expansion of production, and that hasn't changed. The plant wasn't even really on the market, whereas the Wilmington plant is owned by a company whose only purpose is to liquidate assets.
Nov 8, 2009 at 4:41 p.m.
Suggest removal
Does this mean GM is not coming back to Janesville?
Before you post a comment, consider this:
Note: GazetteXtra.com does not condone or review every comment. Read more in our User Policy AgreementPost Comment
Commenting requires registration.