GM closing accelerated

By JIM LEUTE ( Contact )   Tuesday, July 15, 2008
ADVERTISEMENT
 

Podcast Episode


Auto analyst David Healy and Jim Leute, business editor at The Janesville Gazette, discuss today's GM announcement on more cuts

RSS   

Podcast Episode


WCLO's Stan Stricker reports on UAW local 95 reaction

RSS   

Podcast Episode


GM Chairman and CEO Rick Wagoner discusses changes to the company at a news conference Tuesday morning.

RSS   

— General Motors plans to further cut production of its struggling full-size trucks, but officials aren’t saying what that means for the automaker’s plant in Janesville that is scheduled to close by 2010 at the latest.

But indications out of Detroit are that the Janesville plant will close sooner than the forecast the automaker laid out just six weeks ago.

As a result of a weak U.S. economy and soaring gas prices, GM Chief Executive Officer Rick Wagoner said today the company plans to make operating cuts, sell assets and borrow money to generate about $15 billion by the end of 2009.

About $2.5 billion of that will come from reductions in truck capacity and related component, stamping and powertrain capacity. Wagoner said truck capacity will be reduced by 300,000 units by the end of 2009, half of which will come from the acceleration of prior announced actions.

In June, Wagoner announced that GM will end production at its Janesville plant by 2010 at the latest. In addition to the closure in Janesville, GM said it will close a pickup truck plant in Oshawa, Ontario, a mid-size SUV plant in Moraine, Ohio, and a medium-duty truck plant in Toluca, Mexico.

Because of continued slow sales and high dealer inventories, GM since has indicated that workers in Janesville will be laid off for more weeks in the remainder of 2008 than they will work. Workers were supposed to return from an annual two-week corporate shutdown Monday, but that break was extended by a two-week layoff.

Employees now will return July 28 but will face another 10 weeks of layoffs through the end of the year, including the entire months of November and December.

When GM does close its Janesville plant, it must give the state 60 days notice, which some have rumored the automaker will do at the end of October, ahead of the two months of downtime.

When asked if it’s possible the Janesville plant might not resume production in 2009, GM Chief Operating Officer Fritz Henderson said the automaker wouldn’t be specific about dates or individual plants.

“To the extent that we put dates out there, it will be those dates or sooner,” Henderson said.

When the Janesville plant resumes production later this month, about 1,150 workers will produce 440 full-size sport utility vehicles a day on one shift. With a line speed of 44 jobs per hour, local workers would build about 85,000 SUVs over the course of the year.

In response to GM’s June announcement, Gov. Jim Doyle appointed Tim Cullen, retired businessman and Janesville School Board member, and Brad Dutcher, president of United Auto Workers Local 95 in Janesville, to a task force charged with trying to maintain a GM presence in Janesville.

Cullen said Wagoner’s comments today only add urgency to the local group’s efforts.

“It really won’t alter our efforts at all,” Cullen said. “If anything, it just means we need to get to Detroit sooner rather than later.”

Cullen said the group’s goal is not to convince GM to continue building just SUVs in Janesville. The group is trying to put together a package of alternative production ideas for the Janesville plant.

“It could possibly be cars, motors or something else,” Cullen said.







reader COMMENTS (91)
no
Jul 21, 2008 at 1:40 a.m.
Suggest removal

*Do you guys realize that the union gives more money to the republican party than to the democratic party? Found this out a couple years ago. It was pretty interesting stuff!*

Are you talking about the members individual contributions as opposed to the official contributions from the Union? The rank and file can do whatever they like with their money but the Dems and the Unions are pretty tightly entwined.

snarly
Jul 20, 2008 at 9:38 p.m.
Suggest removal

hay what about the TV'S gm got so the people will show up to work on packer monday.

fattigman
Jul 18, 2008 at 11:51 p.m.
Suggest removal

lovestoscrap- Well, I don't quite know what you're driving at. If you mean that you are morally superior to me because you hate gays and abortionists, well more power to you. It's a free country. However, why don't you try voting your pocket book for a change? My point is that you have fallen for a classic head fake: politicians pander to the self-righteous vanity of one- or two-issue voters and then pick their pockets. Unless you are rich, you bought a bill of goods if you voted R. The Republicans are simply the party of the rich and self-righteous. It's really that simple. Anybody who can't see that has had his/her head in the sand for the past 28 years. Both parties are clearly corrupt, but the one claiming the moral high ground (Republican)is the more hypocritical. Again, the Dems are far from blameless, but you can clearly see the results of 28 years of center-to-right politics.

coast2coast
Jul 18, 2008 at 2:47 p.m.
Suggest removal

lovestocrap:
I think that was when the GOP controlled congress. I'd be very surprised if it's that way now that the Democrats are in control. They basically give the money to whoever has the power (the majority). You obviously have much more lobby power when you can buy off the party which is in power. Don't be blinded by your own political party affiliation. You look at either party, and where a candidates $$ comes from, and it's mostly ALL from big business, or special interest lobbiests.

ctr1
Jul 18, 2008 at 12:02 p.m.
Suggest removal

Make your own decisions, and dont be a one issue voter. on the other hand, just let the gop ride to to moral victory again, and watch them laugh their butts off. really, no offense, but pull Your head out of the sand.

lovetoscrap
Jul 17, 2008 at 2:57 p.m.
Suggest removal

fattigman...maybe if the democrats would have kept from taking money from special interest groups...planned parenthood, gays rights activists etc. we wouldn't be having this discussion right now. As a Christian, I cannot bring myself to vote for anyone who says these things are okay and deserve to have tax payer money! My conscience won't let me.

lovetoscrap
Jul 17, 2008 at 2:53 p.m.
Suggest removal

Do you guys realize that the union gives more money to the republican party than to the democratic party? Found this out a couple years ago. It was pretty interesting stuff!

no
Jul 17, 2008 at 12:30 a.m.
Suggest removal

The Kid is back, this time with extra hilarity:

*i have word from some people who know some people that 18 of the next 19 cars that gm is going to introduce are hybrids.*

Were these people your weed dealers? GM can't even get ONE decent hybrid out when they needed it, like, yesterday. Oddly enough, Lutz just gave a presentation in which ZERO of the upcoming cars were a hybrid.

*ive heard this jville plant is old on the outside only, state of the art inside, gm the company will survive, and they will still sell close to a million vehicles a year, just dift kinds of vehicles.*

The auto industry is in such a slump that even TOYOTA has revised its sales expectations. You've heard of them, right? They make all the hybrids that people want to drive.

*i understand theyre cuttin costs now, but what happens when president obama*

HAHAHAHAHA!

* gets the economy turned around and everyone wants new cars again?*

No one is going to want rear-wheel drive vehicles. Or Camaros. Or Buicks. Or SUVs. Or CUVs. These are the cars that Lutz just came out and hyped up.

No one will want them unless these vehicles get 40 mpg, which they won't, or unless they make a ton of money, in which case they will most likely buy a Lexus or Benz anyway.

ctr1
Jul 16, 2008 at 10:46 p.m.
Suggest removal

I miss chad_vader ;)

BeenThereDoneThat
Jul 16, 2008 at 9:45 p.m.
Suggest removal

My best friend works for the state in the department that would have received the 60-day letter. She didn't see anything come through today.

fattigman
Jul 16, 2008 at 9:02 p.m.
Suggest removal

Razorsharp-Well said. I can't disagree with any of your points. Besides the issue of extremist thinking, I point the finger squarely at Ronald Reagan saying "government is the problem" and people actually buying it. It's like saying, "Vote for me because I promise to do nothing because I don't believe in government. And I'll lower your taxes to boot!" I can't believe people fall for that. Sure, government will pick your pocket if taxpayers don't demand efficient services. The current regime sells the taxpayer a bill of goods by getting them keyed up over emotional issues like abortion and welfare mothers, then picks their pockets. Both parties are at fault for our current problems, but the Republicans are clearly more hypocritical on this score.

jtmek
Jul 16, 2008 at 9:01 p.m.
Suggest removal

Has anyone heard that GM gave the state of Wisconsin the 60 day notice today?

Kleej
Jul 16, 2008 at 8:43 p.m.
Suggest removal

coasttocoast
These parties are lobbied and money driven. That's called lack of honor and duty. These are the people I'm speaking of in our positions of power. These people that are lacking in the qualities necessary to lead a country are being put into these positions by WE THE PEOPLE! WE THE PEOPLE NEED STOP DOING THAT! It's our country. Period.

www
Jul 16, 2008 at 6:18 p.m.
Suggest removal

unidentified- You worked for gm,chrysler,and lear? Hmm!! By the looks of your huge posts,you should be a writer!! I think the gazette is hiring.Might want to get ahold of scott angus.

peppermeister
Jul 16, 2008 at 5:03 p.m.
Suggest removal

I just read the paper cover to cover.

Must...go...buy... Not sure why I now have an overwhelming desire to go spend all my hard-earned cash on frivolous geegaws. I seem to have lost all self control and common sense. Gee, I hope it wasn't some subliminal message in the paper.... ;-)

C'mon, razor. Don't make me get up on my personal responsibility soapbox!

rusty
Jul 16, 2008 at 5:02 p.m.
Suggest removal

As I understand, GM has to give the state 60 days notice of the actual closing. Along with what Wagner indicated yesterday about closing the plant sooner then 2010, it is probable that they'll tell the state on 1 Nov that the plant will close 1 January.

coast2coast
Jul 16, 2008 at 4:29 p.m.
Suggest removal

Some of you boys are way to partisan in these discussions. The reality is that companies like GM give HUGE amounts of money to lobby BOTH parties. Most your "goons" care less what party an elected offial is in. They only care about which PERSON, regardless of party, they can buy off! Wake up people.

Kleej
Jul 16, 2008 at 4:17 p.m.
Suggest removal

noggi
I do realize that. I also realize that honor and integrity are lacking in all walks of political life. They're lacking in our town halls, they're lacking in our schools and they're lacking right in our own households! It's called "leadership". A word that scares many, but, applies to all. We're all leaders to some extent. It's what we're leading is the key. Republican or Democrat or whatever, all of these people started out the same. They were an infant raised to be who they are. Which means, we need to teach the essential core valued principles to our youth so they can mature and progress into these levels of power in our communities with the right thinking! Like right from wrong for instance. Like telling the truth. Like standing for a cause. The direction of our culture is dictated in the homes of America. You see the lack of leadership that exists today in our country. What does that tell you about the homes of America and the family foundations? Not good.

Unidentified
Jul 16, 2008 at 3:55 p.m.
Suggest removal

I’ve found the general tone of the Gazette blogs to be negative. That includes many of the topics beyond the GM topic. People read the Gazette Extra from across the country. Some are former residents, but also potential business owners. In addition, Janesville has had more press lately due to the plant closing and celebrities visiting the area. This site would be the easiest access for people out of state. Would it not be in our best interest to remain as optimistic as possible while looking towards the future? I’ve worked for GM, Chrysler, and Lear Corp. I understand this market and I, along with others, knew this was coming. However, until the locks are on the doors at GM, we need to be proactive. If you’ve read my post on other blogs, you will see that myself and others have mentioned the potential for a business park or mass commuting manufacturer (trains, busses, for example) going in where the plant is now since that appears to be the future. I’ve also mentioned the potential for Janesville to be proactive in getting green and technology oriented companies here. I know we have to look past GM, but I also know that there will be a lot of pain before any gains if GM leaves. If I stated that small cars were coming to Janesville then it would be misleading and irresponsible. I was simply giving examples of what potential is out there. It is up to our local and state representatives to, hopefully, look at those potentials and give GM reason to stay in the area. It may end up being for not, but again until the locks are on the doors we shouldn’t give up hope.

noggi
Jul 16, 2008 at 3:37 p.m.
Suggest removal

do you realize that "the goons" of corporate america are largely republicans?

That`s right up there with "everybody knows"

Zoom
Jul 16, 2008 at 3:37 p.m.
Suggest removal

And what short term suggestions do I have? None, beyond the Gov's team trying to get some cash out of GM before they close up shop. The rest of the city needs to focus on a future without GM. I don't think our end goals are all that much different in the long term.

Zoom
Jul 16, 2008 at 3:30 p.m.
Suggest removal

Unidentified - I didn't "scoure the net", I read it yesterday, actually. I simply posted the link, matter of factly. Even petcat posted that s/he read it somewhere. Why the defensiveness?

OK, "back pedal" might have been a little harsh.

Your anonymous posts, or anyone else's, are not going to influence whether a company locates here. If I wanted to be negative, I would say that that's a little egotistical. If businesses used anonymous posts on blogs to influence their location decisions, businesses wouldn't move anywhere.

I actually agree with your 7/15 1:27p.m. post. I have now used up my positivity for the day ;)

stainless
Jul 16, 2008 at 1:59 p.m.
Suggest removal

localboy
do you realize that "the goons" of corporate america are largely republicans? I wish they would take with them what they learned in "liberal left wing colleges" we would all be better off.

Unidentified
Jul 16, 2008 at 1:47 p.m.
Suggest removal

Backpedal about what? You reference and article about the Beat which posted yesterday after scouring the net to find it, sorry I missed that one. This still doesn’t negate the point I made. European car designs are already being used, as the previously mentioned Saturn Astra. I’m not giving false hope to anyone, does this line ring a bell “the odds are stacked against us.” People are smart enough to understand our situation without taking false hope from a blog post. Another typical pluck out what you can be negative about response from the numerous negative bloggers who flood the Gazette Extra. My point is simply that people like you are filled with so much negativity, that no company is going to invest here. GM is still here and although it may not be for long, what alternatives do you suggest? Let’s just throw in the towel now and move on? You rattle on about false hope; well what are your short term suggestions? Granted, in the long term we may find alternative employers who come to Janesville. However, in the short term schooling alone isn’t going to find local jobs for thousands of people when the unemployment rates keep rising. Again THE ODDS ARE STACKED AGAINST US, but I’m not throwing in the towel just yet. Remember this line, “I’m preparing for the worst and hoping for the best.” Let’s see what you can pluck out of this post to be negative about, I’m sure you’ll find something.

Zoom
Jul 16, 2008 at 1 p.m.
Suggest removal

Unidentified,
The Beat isn't coming to the U.S. anytime soon, per Bob Lutz.
http://www.autoblog.com/2008/07/15/lutz-...

Instead of "simply" modifying existing designs (which is neither quick, nor cheap), how about designing a true world car in the first place? The next Fiesta and Ford Focus will be true world cars. Only some of GM's midsize cars could be considered world cars.

You can back pedal on your original statement all you want, but there is nothing that GM can do to keep jobs here until the economy recovers, whenever that is. You are simply giving false hope to any of the current GM employees and suppliers of Janesville who will believe anything that sounds like good news.

I have no problem with the Gov's team trying to wrangle some compensation out of GM. It worked when the factory in Kenosha closed. But for you to give the impression that GM will somehow keep the lights on in Janesville is irresponsible.

Kleej
Jul 16, 2008 at 12:11 p.m.
Suggest removal

razorsharp~
I'm on the same page as you are. You are right. This country has been the frog in a pot of boiling water for years now. We're so used to the way things are that we're oblivious as to what's really going on. There are alot of people who choose to be the "ostrich with their head in the sand". It's convenient for them. I applaud you for your stance and I'm in the fight with you. this country needs a wake up call. Unfortunatley, it will probably come too late because too few are willing to face reality and come to terms with it. God bless you razorsharp and thank you.

MOC0428
Jul 16, 2008 at 12:02 p.m.
Suggest removal

There is always someone out there that believes the government is out there to get them. Razor, you need to relax a bit!

Unidentified
Jul 16, 2008 at 11:56 a.m.
Suggest removal

What you think you read is that the Chevy Beat doesn't meet current U.S. safety standards, which none of the European cars do. However, it was only a few weeks ago GM announced the effort to adapt these cars to U.S. standards. This is a smart move by GM, because they simply need to modify existing designs for the U.S. rather the start from the ground up, which is more expensive. Obviously there or no guarantees these cars will make it here. The bitterness displayed against GM or its employees bleeds through most of the negative replies posted on these blogs. This isn't about liking or disliking GM or its workforce. This is about ensuring Janesville's short term economic success and right now GM is still here. In the long term Janesville will recover regardless of GM. However, I don't want to read a, "Janesville Twenty Years Later," story twenty years from now. The economic impact of GM closing hasn't been felt yet and I think it is all too easy for people to assume nothing will change. Again the unemployment rate is already hovering around 7% in Rock County. Sure the odds are stacked against us, but I wouldn't give up on GM Janesville just yet. With the current job market and economic uncertainty we must work hard to retain and gain every job in Janesville, including those that are not automotive related. Prepare the worst and hope for the best or simply keeping hoping for the worst. Either way the negativity surrounding this onetime top local employer isn’t a good invitation to other companies looking for a new home.

razorsharp
Jul 16, 2008 at 11:41 a.m.
Suggest removal

zoom
I'm far from paranoid. I'm just aware of the agenda of the media. I'm not saying it's all bad and I'm not blaming anybody for anything. If you had read closer, I said the media provides the vehicle in which people attain debt. Mr. Angus stated that the newspapers intent was to inform the public of the issues and news in the community. I don't doubt that! I believe that the Gazette is a fantastic publication. But I'm not blind as to the fact that every newspaper or media source out there has a specific agenda. I can assure you this..... the public's best interest isn't the top priority! The Gazette along with every other publication out there is a BUSINESS! Their bottom line is making a profit. Who do they profit from? US. Consumer capital is king. Without us, the Gazette is out of business and Mr. Angus is working somewhere else. One key point here..
This isn't a public bashing of the Gazette or Mr. Angus or anyone or anything else. It's just a fact. Our generations are born and raised with the media in this country and it's become our culture's conscience. If every person relied on the media's information as truth, what's to stop someone in power down the road from using it to their advantage?? You ever heard of communism? You can call it paranoid if you like, I call it waking up to reality. The direction of this country is spiraling downward in a hurry. If more people don't wake up to reality and understand what's really happening in our society, this country is doomed. I'm just choosing to be educated with the right media. And that media doesn't include TV, Video games, magazines, newspapers etc. I don't need someone subconsciously teaching me how to think. I'd rather do that myself. And one other thing. The Gazette doesn't give me the freedom and ability to post articles like this on their site! The men and women who fought for this country's freedom's did! The liberal media has a vested interest in people not being educated with the proper education. They want to become the public's conscience and they're succeeding on our watch.

snarly
Jul 16, 2008 at 11:21 a.m.
Suggest removal

by by to all

Zoom
Jul 16, 2008 at 11:18 a.m.
Suggest removal

razorshop,
Paranoid much?. Your claim that advertising, or the newspaper, is somehow responsible for getting people into debt is ridiculous. And when has the Gazette ever claimed that advertising ISN'T income? What? Without that advertising, you wouldn't be able to post your crazy rantings. Who do you think pays for all the other free sites you post on? That's right, it's ADVERTISING.

Zoom
Jul 16, 2008 at 11:09 a.m.
Suggest removal

And yes, the Beat also won't be coming to the U.S., for the reasons petcat mentioned...a two year time frame and too expensive to convert.

Zoom
Jul 16, 2008 at 11:06 a.m.
Suggest removal

Unidentified,
All of the cars you mentioned are wishes at this point, and none are in the pipeline to come here. GM throws a lot of wishes out there, but can't deliver (e.g., Chevy Volt).

The only new small car GM has committed to is the Chevy Cruze. The cobalt platform will continue on for some time, along with the Korean built Aveo. Sorry, those vehicles won't be coming to Janesville.

razorsharp
Jul 16, 2008 at 10:58 a.m.
Suggest removal

sangus
I never said the Gazette makes up stories. I am saying that your newspaper and every media source out there has a specific agenda. That agenda is getting people to PURCHASE their media source. Obviously the cost of a newspaper that people are paying cannot support the overhead of the company. Thus, advertisers are necessary. They pay the bills. So, if your media source can't come up with the sensationalized news stories that captivate the public, they won't buy the paper!
Here's the bottom line. The advertisers agenda is to lure the consumer to part with their money to buy a particular good or service that you advertise in your paper. We have the highest credit card debt ration amongst the U.S. population in history. We have more consumer debt than ever before. You claim that your paper's goal is to inform the public of the issues in the community for the good of the people. What about the ads? It's proven that ads are in place to influence people to spend their money. Do you believe everything advertised in your paper is worthy of someone's hard earned money or so valuable that they should run up their credit cards just to have the goods or services you're advertising?? I'm not saying it's the newspaper or the media's fault that people are up to their neck in debt. I'm saying that the media is providing the vehicle for people to achieve this. If your paper is truly "for the people", aren't you compromising people's best interest by not informing them that the purpose of your advertisers is for 1) income for the Gazette 2) for the public to be influenced to spend money they may or may not have on things they may or may not need? .......... I know for a fact the Gazette's agenda isn't the people in the community and their best interest. It's the Gazette's best interest first and foremost.

noggi
Jul 16, 2008 at 10:14 a.m.
Suggest removal

It is better to face reality than to continue to clutch at straws. The plant is, for all intents and purposes, CLOSED.

GM will go bankrupt unless it cuts costs to the bone AND does some top of the line R&D on a new line of fuel efficient vehicles.

Cost cutting will include cuts in all the benefits provided in the past. Some drastically.

sangus
Jul 16, 2008 at 9:30 a.m.
Suggest removal

Billy,

Thanks for the clarification. Janesville is the only plant on the list that makes the big SUVs. Moraine makes the midsize SUVS, such as the Chevrolet Trailblazer and GMC Envoy.

Scott Angus

BillyDurant
Jul 16, 2008 at 9:15 a.m.
Suggest removal

Mr. Angus,
I would like to correct your comment. Moraine Assembly in Ohio is also an SUV plant. That would make two SUV plants (Moraine & Janesville) and two truck plants (Oshawa & Toluca) that are slated for cease of production.

Billy Durant

ladyinred
Jul 16, 2008 at 9:12 a.m.
Suggest removal

rumor has it Gm has a 300 million dollar contract with cullen anyone know anything about that

upnorthwi
Jul 16, 2008 at 9:07 a.m.
Suggest removal

I see Janesvillehero can't admit where he works. Wonder why?

Unidentified
Jul 16, 2008 at 8:51 a.m.
Suggest removal

Zoom: A car called the Chevy Beat is coming and derived from European models. Many of the small cars I’m referring to will be coming from Europe. This includes the recently added Saturn Astra, which the overseas version sells in the 500,000 range. GM’s Opel/Vauxhall brand has several small cars that GM can convert for U.S. sales including the Agila (which I believe to be the coming Chevy Beat), the Corsa, the Zafira, and the Meriva. In the Euro Chevy lineup we have the Matiz/Spark, the Lacetti, and the Tacuma / Rezzo. GM has mentioned publically that it intends to convert it’s already fuel efficient European lineup to be used in the United States. This leaves the pipeline wide open for potential small cars that could be built in Janesville. This is on top of more fuel efficient crossovers and hybrids that GM has coming. Can GM get a better profit from just one small car in Janesville? No. However, much like Chrysler’s Belvidere facility, multiple cars could come down the same production line, which would be a viable and profitable option for GM Janesville.

razorsharp
Jul 16, 2008 at 8:36 a.m.
Suggest removal

fattigman
I agree with your point regarding the extremists ideologies. It's not just the economy they're ruining. It's our culture. All the principles are being compromised by these modern day intellects to serve their agendas. (Corporate America!)
As far as Socialism goes.... Our govt. is lulling this country to sleep with the "security" feeling. We don't need a govt. to keep us feeling warm and fuzzy all over so people can feel it's okay to just get by! The govts. job is to protect the Constitution of this country and it's people of this country against it's govt. We're trading our freedom for security! Our generations are being taught to settle for mediocrity and not to strive for above average anymore. We have a country being run by Corporate American goons who have the govt. in their hip pockets. Unless people with a sense of what's really happening out there band together and get back to the foundational principles this country was founded on and start teaching them to our up and coming generations of people..... We are heading for the dark ages. It's not something everyone wants to hear or cares to accept, but, it's happening. Sad part is...IT'S HAPPENING ON OUR WATCH! Too many good people out there not willing to face reality and step up do something about it.

ORiley
Jul 16, 2008 at 7:59 a.m.
Suggest removal

False reporting? Anybody out there have any idea why air freighters were landing in Janesville last week, loading out? They usually DELIVER!

sangus
Jul 16, 2008 at 6:28 a.m.
Suggest removal

The Gazette is not making up news or trying to stir up people. We're trying to report news that it is vitally important to this community.
GM officials, including Chairman Rick Wagoner and Chief Financial Officer Fritz Henderson, said Tuesday that the automaker will speed up previously announced closures of some truck and sport utility vehicle factories.
The Janesville plant is the only SUV plant on the closure list, so it's not hard to draw conclusions from the announcement. Beyond that, sales and inventory numbers - along with additional shutdowns scheduled in Janesville through 2008 - add credence to the conclusion.
The headline on this story was actually a blanket headline over two stories in the print addition. The second story was the Associated Press version of Wagoner's announcement and comments from Henderson and industry analysts.
We hope to have a follow-up story today with more information on GM's plans for Janesville.

Scott W. Angus
Editor

kiowamohican
Jul 16, 2008 at 3:07 a.m.
Suggest removal

Here is a few excellent articles (one among MANY that was all over the financial news reports today):
.

http://www.businessweek.com/lifestyle/co...
.

http://www.forbes.com/feeds/ap/2008/07/1...
.

http://www.businessweek.com/investor/con...
.

A top analyst for Merrill Lynch has stated that GM is very likely to go bankrupt. Everything I have read, I would have to agree. The big question is will there be a huge government bail out? With the government likely to start bailing out many banks (many of which are on the verge of going under), and mortgage lenders, I would not get your hopes up.

stormragingwthin
Jul 16, 2008 at 2:56 a.m.
Suggest removal

Look I don't work for GM but I do live in Janesville. My job will never be affected by anything that happens in Janesville because my customers are global not local.

I have a lot of interests in Janesville. The bottom line is that when GM closes down it is going to affect most of the Janesville families. From those who are directly hit at GM and companies who directly provide service to GM and the people who work at Kmart.

Five percent of Janesville's population works for GM thats quite a number. 5% who have families who have to shop for their needs at "kmart walmart woodmans target loglis and local gas stations ect" This is going to hit our local economy hard. The blame game needs to stop.

For those of you who actually think we elected Bush please go back to history class and figure out that we the people do not elect presidents. The electoral college elects presidents. Our government believes us to stupid to decide who our president should be.

We need to come up with another solution. My family may not be directly hit by GM but many of your families will be. Don't get angry get smart. All those who are being laid off use that time to get an education. Start planning for the future now. Don't wait around for the corporation and the city to tell you what your future should be. Make your own way!

thekid3477
Jul 15, 2008 at 11:55 p.m.
Suggest removal

i have word from some people who know some people that 18 of the next 19 cars that gm is going to introduce are hybrids. ive heard this jville plant is old on the outside only, state of the art inside, gm the company will survive, and they will still sell close to a million vehicles a year, just dift kinds of vehicles. i understand theyre cuttin costs now, but what happens when president obama gets the economy turned around and everyone wants new cars again?? this, in my opinion, is ANOTHER short sighted move by gm, put a new vehicle there, abandon the gas guzzlers, and work thru this down time. in 3 years theyll be screamin we cant get enough hybrids(like honda/toyota) and theyll borrow hundreds of millions and build a new plant....

Zoom
Jul 15, 2008 at 11:50 p.m.
Suggest removal

"Wagoner said truck capacity will be reduced by 300,000 units by the end of 2009, half of which will come from the acceleration of prior announced actions."

What are the chances Janesville won't be effected? GM won't announce the closing until after the workers are out of the plant, during one of the 10 weeks of layoffs.

lynn12
Jul 15, 2008 at 11:39 p.m.
Suggest removal

Here goes the Gazette trying to stir people up again with their FALSE reporting. There was no new news concerning Janesville's GM plant. There is NO ACCELERATION for the closing yet. Also, the plant is still not in "closed plant status". The Gazette needs to start reporting the facts as they are, and not reporting made up "news" just to cause controversy. When asked how the new announcements made today would affect Janesville, Rick Wagoner would not comment on anything except to restate what was already announced weeks ago! WAKE UP GAZETTE and get your facts straight before you make up a lie for your headline!

Zoom
Jul 15, 2008 at 11:22 p.m.
Suggest removal

Considering GM hasn't made a profit for quite some time, shareholders have nothing to do with GM's current actions.

You really don't seem to understand that GM is just trying to survive through 2009. The cuts they are making are to raise cash, or they won't last that long.

Please name the smaller vehicles in the "pipeline" that GM could shift to Janesville, at a better profit.

GM has already abandoned the U.S. It has wiped out 85% of it's U.S. jobs since 1990, and at one time became Mexico's largest private employer.
http://www.thedailypage.com/isthmus/arti...

Unidentified
Jul 15, 2008 at 10:54 p.m.
Suggest removal

ekim8404: The mentality of share holders first is the problem for many of these larger corporations and the reason their profits continue to slide. Even Business Week has started covering stories outside of the “old” corporate mentality. The new trend for successful corporations is to put employees and customers first. As a result, because of happy employees and customers, profits follow and holders will be happy. Share holders don’t always understand the guts of a company and most certainly won’t understand the value GM Janesville gives to GM as a whole. They are quick to seek cuts even when they aren’t good for the company, as viewed by stock bounces upwards upon any announcement thereof. There are plenty of smaller more fuel efficient products in GM’s pipeline that can be diverted to Janesville. With unemployment rates already hovering around 7% in Rock County, I think it is unwise to have the “Who cares let’s move on from GM,” mentality. There isn’t much to move on to now and it will be even worse once GM closes the first shift down.

Janesville is right in the heart of the Midwest, where there is still some level of pride in American born companies and products. A place were the workers grew up farming and no how to put in a hard day of work. In addition, these same workers head to their local auto dealers and buy American even when their employee discounts aren’t enough to make a Kia too expensive. This is a place where generations of families have driven, Fords, Chevys, or Dodges. If GM is going to make a comeback anywhere in the United States General Motors needs its heart and soul, which is right here in places like Janesville, WI. If GM abandons places like Janesville, then it abandons the U.S.

fattigman
Jul 15, 2008 at 10:26 p.m.
Suggest removal

Localboy1968 - That's right, blame the liberals for this mess! Aren't you glad you voted for Bush? Seriously, anyone who voted for these Republicans should do some soul searching. This financial and economy mess is what happens when people stop using their heads and fall in line behind any extremist ideology.

anonomouse
Jul 15, 2008 at 10:08 p.m.
Suggest removal

It's all over the news. Times are getting rough.

danias
Jul 15, 2008 at 9:53 p.m.
Suggest removal

janesvillehero where do you work? Your quick to judge and slam others. You must be somenone who sits behinds his desk and has all day to comment on everything GET A LIFE!!!

optimism
Jul 15, 2008 at 9:13 p.m.
Suggest removal

Sarah....I think the makers of prozac must be on strike.....hehe.

SarahB
Jul 15, 2008 at 8:54 p.m.
Suggest removal

I agree, let's quit kicking everybody today! There must be something wrong with the Earth today; just about everyone that I've had contact with today is very, very grouchy! What is up?

optimism
Jul 15, 2008 at 8:14 p.m.
Suggest removal

Gazette, obviously no one "cares" about these people losing their jobs, so my suggestion is either don't report on these issues, or disable comments being the comments on here really could hurt an already unstable person in the midst of losing their livlihood. Just a suggestion. I feel so bad for these people, and it breaks my heart to see people kicking people when they are down.

fattigman
Jul 15, 2008 at 7:59 p.m.
Suggest removal

Razorsharp. I hardly think socialism is the culprit here. I have lived in, and have friends in Germany, Norway and Denmark. They are all happily living in stable, prosperous societies with Democratic Socialist governments. I suggest you travel overseas for a reality check.

curlysue
Jul 15, 2008 at 7:28 p.m.
Suggest removal

I knew 3 weeks ago the plant would be closed by Halloween. My hubby brought home a paper that lists the weeks the plant will be shut down for July, Aug, Sept, and Oct. Listing the plant completely shut down Nov and Dec. Old news.

ekim8404
Jul 15, 2008 at 6:13 p.m.
Suggest removal

Look, GM is simply part of the larger economic correction going on. GM relied on those big SUV's because YOU bought them, and in doing so, gave them a nice profit. Only when gas got to be expensive (something almost every energy or economic analyst had said would happen) did everyone start whining. GM doesn't owe Janesville anything. If an individual chooses to spend 20 or 30 years in a factory then that individual must be prepared for the worst. It wasn't any different when the American steel industry went belly up. They are a global corporation, one of the largest on the planet and must deliver to their shareholders. Welcome to the machine.

nictre
Jul 15, 2008 at 4:35 p.m.
Suggest removal

JanesvilleHero: Diapers are on sale this week at Target.

razorsharp
Jul 15, 2008 at 2:39 p.m.
Suggest removal

localboy
No arguments there! You couldn't have said it any better. The educational system that we have today from the youth on up to college is just as you say. There are no principles anymore. They've all been compromised. Our history has been altered to try and teach our up and coming generations that freedom came free. The more our history gets erased from society's conscience, the closer we get to socialism. As John Kennedy once said, "We can't know where we're going until we know where we've been". We have so many soldiers who have fallen that put it all on the line for this country to have the freedoms it's blessed with and on "our watch", we're allowing our generations of people to be oblivious to it. I will never stop educating my children as to their true history and allow these heroes to die in vain! We the people of this country owe our forefathers that much!!!!!!

gmretirednow
Jul 15, 2008 at 2:14 p.m.
Suggest removal

Well I would say there would not be much production without the trains coming in. I guess all who did not retire this year will get their retirement anyway..

ammfrm
Jul 15, 2008 at 1:50 p.m.
Suggest removal

while this article is speculation (nothing concrete from GM states they are closing early) though the writing is on the wall as previously said. And I've heard from someone who works for the railroad that they are done (for GM) at the end of October- so to me that kind of says it all doesn't it?

Unidentified
Jul 15, 2008 at 1:27 p.m.
Suggest removal

“To the extent that we put dates out there, it will be those dates or sooner,” Henderson said. This would be the key statement from GM. However, let’s consider that the Janesville plant is off the entire month of November and December and sixty days notice is required by the state. In addition, they will be off more than they work the remainder of the year. That is writing on the wall in big capital letters. We'll know more the end of October one way or the other if Janesville GM lives past 2008. Personally, I feel GM is losing a great part of its core work force in Janesville should it decide to close. It was the Janesville plant that kept GM afloat when they were struggling in the 90's as their most profitable plant. Janesville has always put out good quality products winning multiple awards. Wisconsin has bent over backwards to accommodate GM, even building a road right to the plant. How much more incentive does GM need to keep a product here?

badgrss
Jul 15, 2008 at 1:13 p.m.
Suggest removal

Hey not to worry Gov. Dolt promised to do everything possible to keep GM in Janesville open, so what's to worry about? I'm sure he's still working on filling Lake Delton. He's a busy guy and besides the EPA, DNR and plenty of lawyers will make millions off of the Super Fund Clean UP money that will be neeeded de-contaminate the plant site. So what are ya whinning about?

Long_Time_Gone
Jul 15, 2008 at 1:09 p.m.
Suggest removal

It's NAFTA - Not, NAFTO. Get a clue.

nurse4u
Jul 15, 2008 at 12:42 p.m.
Suggest removal

I have one word-"NAFTO".

localboysince1968
Jul 15, 2008 at 12:40 p.m.
Suggest removal

razorsharp - just remember these "goons" you are referring to are the same that are educated at our liberal left wing colleges. They just keep cranking them out. They teach them to screw American and spew anti-patriotic rhetoric and wonder why none of these "goons" care about America and what happens to them.

razorsharp
Jul 15, 2008 at 12:17 p.m.
Suggest removal

redramr
That's the just the start of what is to come for retired GM workers! It's not going to be too far into the future when GM throws in the towel and sells out all of their retirees. Too many people have been lulled to sleep by false promises. The health benefits and the pensions are going to be gone! There's no guarantees for any of that. The gov't isn't going to see it through either. They're "in bed" with these crooks known as corporate America. The dark ages are approaching. We have ourselves to blame.

Kleej
Jul 15, 2008 at 12:13 p.m.
Suggest removal

localboy~
Welcome to the American media! What do you expect? The Gazette is no different from any of these other corporate American goons who have a vested interest in our minds! These people don't make their money from the articles in their papers. They make money from mainstream America through their advertising in the paper. Ever notice the headlines are in bold print and seem to get the most exposure?? Do you suppose that would be to get people's attention and possibly purchase their paper? Ever notice when they split the article to another section of the paper, the ads that are surrounding the conclusion of the article? The Gazette and every company that produces newpapers don't have anyone's best interest in mind but their own. It's a business. We are the consumers. They give the consumers what they think they need in the form of "news" and take people's money!

warm
Jul 15, 2008 at 12:08 p.m.
Suggest removal

Stacey, you lived through the 'strike years' and were 'living lean'? Meaning you were living in a homeless shelter or on the street?? Unless this was the case, I don't think you have a clue as to what 'living lean' means.

localboysince1968
Jul 15, 2008 at 11:57 a.m.
Suggest removal

I personally think this story is irresponsible journalism. The title is "GM Closing Accelerated". The article is only based on indications and speculation, and when GM was pressed for a exact quote, would not give one. So my question is; "How can you report that GM has accelerated the closing?" I don't see any facts or quotes from GM that say the such.

Purrmaid
Jul 15, 2008 at 11:49 a.m.
Suggest removal

Long_time_gone - What post are you reading? The only post I can see from Tallman does not identify Sheridan as the UAW President. ("...where is Wisconsin assembly person Mike Sheridan...")

redramr
Jul 15, 2008 at 11:47 a.m.
Suggest removal

The story that has not been reported TODAY:
GM plans on elimanating retiree health benefits for salaried employees over the age of 65 as of January 01, 2009. Do you union employees think you won't be next? When the heck will Americans realize that our Government by the people, for the people has been hijacked by special interests and big business in Washington, D.C. How long will it be before a grass roots movement descends on Washington (in their R.V's, Suburbans and Tahoe's) with buckets of Tar and Feathers to reclain our govemnment from the totally corrupt democrats and republicans (2 sides of the same coin) who have sold us all out to special interests and huge corporate money.

Long_Time_Gone
Jul 15, 2008 at 11:31 a.m.
Suggest removal

Tallman - you are clearly not smart. My ole friend Mike Sheridan is no longer UAW President, and he retired from the plant.
*
Perhaps you are referring to his position as a State Assemblyman?
*
Do just a little background checking before you press send.

Long_Time_Gone
Jul 15, 2008 at 11:28 a.m.
(This comment was removed by the site staff.)
tallman
Jul 15, 2008 at 11:25 a.m.
Suggest removal

Hooo Humm, Let see GM is closing, what a great news story. Let's see Brett Farve can't stand not being in the limelight, another great story. Let's hear about all the great volunteer work people are doing, programs our children are in helping the community, now that's news worth hearing about. IF GM is closing newer more accessable plants then Janesville is done. We should not spend $10-$15 an hour other workers tax dollars from around the state kissing GM's butt here. Doyle is going to run himself right out of the Governor position. By the way where is Wisconsin assembly person Mike Sheridan, that great GM revivor that all the GM workers fought so hard to get elected folks?? Why isn't he sitting outside GM in Detroit?? He should know more than anyone what the union workers need. Bye Bye Mike if you voters are smart.

JanesvilleHero
Jul 15, 2008 at 11:24 a.m.
Suggest removal

This is a good thing people! Wake up!! GM needs to go and the sooner we can move on from this mess and the image of Janesville being a GM town...the better! It's a dinosaur nearing extinction. And those who work there simply need to relearn proper work ethics and swallow their pride a bit. They had a free ride for WAY too long.

Long_Time_Gone
Jul 15, 2008 at 11:22 a.m.
Suggest removal

StacyU2 - wanna bet?
*
No company needs 1.4 million sf to lease - no 10 companies combined needs 1.4 million sf to lease.
*
Go eat your peanut butter and cheese, the combo is clogging your ability to reason.

darius
Jul 15, 2008 at 11:05 a.m.
Suggest removal

The American families have been held hostage by the actions of corporate America for years.
Time for the tables to turn!

JimP
Jul 15, 2008 at 11:03 a.m.
Suggest removal

It goes a lot further than what the Gazette printed here. All salaried employees will lose health care benefits.
{Quote} A large chunk of the reduction, he said, would come from cutting health care benefits for salaried retirees. Those people would get a pension increase from the company's overfunded pension fund to help compensate for Medicare and supplemental insurance, the company said. {End quote}

nurse4u
Jul 15, 2008 at 10:52 a.m.
Suggest removal

Another twist of the knife to the heart of Janesville...

StaceyU2
Jul 15, 2008 at 10:49 a.m.
Suggest removal

With the news of closing (possibly) early... it is not surprising to anyone..I lived through the strike years and made it through, sure we were living lean, but we made it... (heck I had some of the best peanut butter and cheese during these times) Janesville will survive, and you can almost bet that the plant will not go/stay empty for long..

armyof3
Jul 15, 2008 at 10:36 a.m.
Suggest removal

they mention lay offs for an additional 10 weeks or so after coming back off a 2 week runner... what they're not saying is that there are some employees that have been forcefully laid off for 2.5 years, and, upon return they must decide whether to relocate to one of the other plants or end their careers with the company... seeing how no information is being released from the GM higher ups as to when it will be shutting down doesn't come to a surprise to me... they're trying to keep what workers they do have left... if they say as to when the plant will close, why would the workers come to work at that point??

maresyann
Jul 15, 2008 at 10:22 a.m.
Suggest removal

I apologize...I meant, why does everyone want the gazette to look "bad". I thought I proof read, but I missed it. Dont' want the grammar police to head my direction. Goodness sakes I make a mistake.

maresyann
Jul 15, 2008 at 10:21 a.m.
Suggest removal

Why is everyone so bent on making the Gazette look back in regard to this GM issue? There was a press conference this morning from GM..therefore the Gazette reported on it. If they h