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Analysts: Janesville's GM plant among most vulnerable

By ASSOCIATED PRESS   Monday, June 2, 2008 - 4:55 p.m.
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By TOM KRISHER

AP Auto Writer

DETROIT

Some auto industry analysts say the Janesville plant is among the most vulnerable as General Motors prepares to announce a restructuring plan Tuesday morning.

As GM prepares for its annual shareholders meeting on Tuesday, workers across the country are worried that the next round of the company’s restructuring could cost them jobs or even their factories.

GM executives are expected to announce the moves right before the meeting in Wilmington, Del., to deal with an evaporating pickup truck and sport utility vehicle market. It likely will mean shift cuts or even closures of some factories that make truck-based vehicles.

GM Chairman and Chief Executive Rick Wagoner’s management team is looking at cuts among the factories that make pickups and SUVs. GM makes full-size pickups in Flint and Pontiac; Fort Wayne, Ind.; and Oshawa, Ontario.

Big SUVs are made in Arlington, Texas; Silao, Mexico, and Janesville, while mid-sized SUVs are made in Moraine, Ohio, near Dayton. The company also makes mid-size pickups in Shreveport, La.

Among the factories most vulnerable are Janesville and Moraine, according to some industry analysts. Greg Gardner, an analyst with the Oliver Wyman Group, said both are a distance from parts suppliers. Plants in Texas and Mexico can easily satisfy demand for big SUVs, while GM may stop building mid-size SUVs in a few years, Gardner said.

Janesville is an older plant that builds the same product as the one in Arlington, Gardner said, and many of GM’s large-SUV parts come from nearby Mexico.

“It would be hard to justify closing Arlington,” said Gardner.

GM has not announced a new product for Moraine, and the company may also reduce full-size pickup truck capacity because it now has four factories making the vehicles.

“That’s a lot of capacity, given the current demand for those trucks,” Gardner said.

GM spokesman Tom Wilkinson on Monday would not say what moves the company would make, though GM officials previously have said that salaried job cuts are unlikely.

The restructuring concerns United Auto Workers President Ron Gettelfinger, whose union gave unprecedented concessions to GM and other U.S.-based automakers during contract talks last year to help them reorganize and become profitable again.

Gettelfinger, in an interview with The Associated Press, said there’s little the union can do about the latest changes at GM and Ford Motor Co., except hunker down and survive until the economy improves.

GM may also furlough entire shifts of workers at some truck factories and may move them to car plants as it restructures to adjust to a rapidly changing U.S. market brought on by $4 per gallon gasoline.




reader COMMENTS
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(72)
Jdowd
Jun 3, 2008 at 8:33 a.m.
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I hope the best for all the employees of GM, regardless of how people feel about GM, the union, or whatever, many people are going to be out of jobs and now will be struggling.
I think this is the focus people should be working on.
I only hope the best for all these workers and their families.

andiwonderwhy
Jun 3, 2008 at 8:29 a.m.
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I do feel bad for all the works (not just GM but all of the support companies that will also announce closings such as Lear, LSI, Allied, etc.). This not about the fact that people worked hard or not, it is about the economics of the company. Sure they can keep the GM plant here open, but it would further hurt the entire company as a whole and probably shut down the entire company. So some have to suffer while others previal- it is a business move that has to be done, and from a business standpoint, I have to agree with it. Again sorry to those that are loosing their jobs.

ImgladileftGM
Jun 3, 2008 at 7:31 a.m.
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To benthinkin! I have compassion for all the hard workers but not whiners like you. Enjoy your permanent vacation. What's the special at McDonald's today?

Dr_Fever
Jun 3, 2008 at 6:49 a.m.
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Well I've been up all night with the top brass from GM and Gov Doyle this is the scoop on GM the Company is ..hang on I'm having trouble with my internet connection give me a few minutes.

BeenThereDoneThat
Jun 3, 2008 at 6:20 a.m.
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cocktail - they do now.

cocktail848
Jun 3, 2008 at 6:01 a.m.
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Geez, you would think that the Gazette would break the news by now. It is 6AM. They should at least have more of a teaser up on the press release coming out today.

DDoright
Jun 3, 2008 at 4:49 a.m.
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Actually Justin I already knew that about nafta it's just easier to cut and paste. And I wasn't trying to "make myself look smarter", just trying to inform some people that still seem to have it wrong.

onelife2live
Jun 3, 2008 at 3:53 a.m.
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There could be alot of houses for sale. I am an employee with 7 years in....All I want to say is I am 43 and worked hard all my life. 8 years in the military, 5 years loading semis, 10 years roofing. My point is I am sore as heck every day I go home. We have done everything the company has asked us to do...for what?

Zoom
Jun 3, 2008 at 1:56 a.m.
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Good call benthinkin. Have you noticed that jackson1's posts have been wiped? Good move by the Gazette, though.

Back on topic. I will second the first post...yikes.

benthinkin
Jun 3, 2008 at 1:35 a.m.
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Based on the posting history, I should've not just said imgladileftgm, but also your other tags...jackson, jackson1 etc.

If you truely benefitted by leaving you would not be so jealous, but thankful.

benthinkin
Jun 3, 2008 at 1:31 a.m.
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imgladileftgm says " I just want to be able to say I told you so"
I supppose this will be your typical adult response when families are torn apart, abuse increases in many forms etc.
Nice to see your compassion showing through.
As for me, I've been set for about 3 years now so you don't need to be concerned about burger flipping.

jtmek
Jun 3, 2008 at 12:20 a.m.
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curlysue, I doubt GM could sell the plant. It's been there for nearly 100 years! Can you just imagine the environmental nightmare they would probably find in the soil there not to mention it's on a swamp. I'm still holding my breath that we'll be okay....could be holding a long time though.

veryboredhere
Jun 2, 2008 at 11:56 p.m.
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curly..... having lived in an area where a GM plant closed i can tell you that gm will do what they want no matter what a state offers. the new road to gm will make no difference to them.... and neither will the tax breaks, because every state is going to offer them to keep the jobs. I wish it wasn't that way, believe me when I say I hope that Janesville can keep the jobs there, having been through a plant closing, I know how hard it is for everybody not just the workers there at the plant, but for the whole community. Good Luck to Rock County!!!!

curlysue
Jun 2, 2008 at 11:50 p.m.
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I try to be possitive, and tell my hubby it's just GM playing the state of WI, they know the gov will try and talk them into staying open and retool for cars, and GM will ask for tax breaks it's leverage

curlysue
Jun 2, 2008 at 11:46 p.m.
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They may own the plant but it's fallin apart, and would cost to much to bring up to date, and other plants are producing the cars, with all the money they will save closing and selling this plant they can pay off other plants and own them

veryboredhere
Jun 2, 2008 at 11:41 p.m.
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I will just wait to hear what they have to say in the morning..... I don't live in Janesville, however I can feel for the people there

doc0430
Jun 2, 2008 at 11:39 p.m.
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Hard to believe GM would shut down one of the two plants that they actually own outright..... This plant could be re-tooled for anything (it built cavaliers remember the Cadillac Cavalier we built? Then trucks now SUVs) How about what all the dealers are running out of, MEDIUM SIZED CARS!!!! Look at the lots you have Cobalts and Trucks and SUVs!

curlysue
Jun 2, 2008 at 11:32 p.m.
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My hubby is in skilled trades, he builds and fixes everything, the plant is fallin apart, and GM won't care to keep it up anymore, so the remaining skilled trades can be axed, they're going to produce but not much, they have to much inventory as it is

curlysue
Jun 2, 2008 at 11:29 p.m.
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told them the plant will shut it's doors in two years. It'll all be explained tomorrow and then the gov will have a press release

veryboredhere
Jun 2, 2008 at 11:28 p.m.
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what departments can they get rid of if they are still producing vehicles???/ what did management tell them???

curlysue
Jun 2, 2008 at 11:27 p.m.
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and cry, cry, cry some departments will be let go very soon, we may not even have 2 years, I hope many are like my hubby and have skills so they can find new jobs, Janesville is going to take a MAJOR hit!, I work in retail and we have lost alot of bussiness already ourselves

veryboredhere
Jun 2, 2008 at 11:24 p.m.
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curly.....told them what??????

curlysue
Jun 2, 2008 at 11:22 p.m.
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U should be at GM, My hubby's been texting me about all the major crap going around right now, everyone knows now. Management told them tonight, now nobody wants to do anything but talk, talk, talk

jtmek
Jun 2, 2008 at 11:14 p.m.
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Sure wish I had some good sleeping pills about now. It's going to be a long night.

curlysue
Jun 2, 2008 at 10:23 p.m.
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I don't think Gov Doyal is speculating at this moment, he's writing his press release.

curlysue
Jun 2, 2008 at 10:21 p.m.
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They are also closing a plant in Canada and one in Mexico, no car coming here.

JohnDoe
Jun 2, 2008 at 10:16 p.m.
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Speculating is SO much fun.....it passes the night away.

curlysue
Jun 2, 2008 at 10:10 p.m.
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Well my husband works at GM. Today he was golfin with a top management at GM and he was on the phone at tee time talkin to the gov. The plant is closing in 2 years and the gov is pissed! after giving GM 5 mil for rt 11

ImgladileftGM
Jun 2, 2008 at 9:50 p.m.
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BTW....Where is benthinkin? Haven't seen him/her throwing their mouth off about this. I just want to be able to say I told you so. Let me know what McDonald's you are going to work at so i can come on by.

ImgladileftGM
Jun 2, 2008 at 9:46 p.m.
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blah..blah...blah.... why don't all of you people stop the speculation and wait until tomorrows announcement? Nobody knows anything so stop! I have my thoughts on what's going to happen but I'll wait until tomorrow. So everyone get a good night sleep and wait till for the announcement.

justintimberlakerules
Jun 2, 2008 at 9:21 p.m.
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DDoright - are you actually quoting wikipedia and not citing your source? shame shame shame

http://en.wikipedia.org/wiki/North_Ameri...

I know I wouldn't want to cite wiki either, but you are using it to make yourself look smarter than you actually are which is rather pathetic.

DDoright
Jun 2, 2008 at 9:19 p.m.
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IMO Clinton should have killed it, I don't really know if he could have or not. BUT if it had to pass at least he put worker and environmental protections in (for what those are worth).

DDoright
Jun 2, 2008 at 9:15 p.m.
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Clinton only added NAAEC and NAALC which are these:

The North American Agreement on Environmental Cooperation (NAAEC) was a response to environmentalists' concerns that the United States would lower its standards if the three countries did not achieve consistent environmental regulation. The NAAEC only obligates parties to enforce their own environmental laws. The NAAEC, in an endeavour to be more than a set of environmental regulations, established the North American Commission for Environmental Cooperation, a mechanism for addressing trade and environmental issues, the North American Development Bank (NADBank) for assisting and financing investments in pollution reduction, and the Border Environmental Cooperation Commission (BECC). The NADBank and the BECC have provided economic benefits to Mexico by financing 36 projects, mostly in the water sector.

The North American Agreement on Labor Cooperation (NAALC) supplements NAFTA and endeavors to create a foundation for cooperation among the three countries for the resolution of labor problems, as well as to promote greater cooperation among trade unions and social organizations in order to fight for improved labor conditions. Though most economists agree that it is difficult to assess the direct impact of the NAALC, it is agreed that there has been a convergence of labor standards in North America.

DDoright
Jun 2, 2008 at 9:11 p.m.
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I wish some people would actually know what they are talking about before they post. For the record:

NAFTA was initially pursued by politicians in the United States and Canada supportive of free trade, led by Canadian Prime Minister Brian Mulroney, U.S. President George H. W. Bush, and the Mexican President Carlos Salinas de Gortari. The three countries signed NAFTA in December 1992, subject to ratification by the legislatures of the three countries. There was considerable opposition in all three countries. In the United States, NAFTA was able to secure passage after Bill Clinton made its passage a major legislative priority in 1993. Since the agreement had been signed by Bush under his fast-track prerogative, Clinton did not alter the original agreement, but complemented it with the aforementioned NAAEC and NAALC. After intense political debate and the negotiation of these side agreements, the U.S. House of Representatives passed NAFTA on November 17, 1993, by 234-200 vote (132 Republicans and 102 Democrats voting in favor; 43 Republicans, 156 Democrats, and 1 independent against),[7] and the U.S. Senate passed it on the last day of its 1993 session, November 20, 1993, by 61-38 vote (34 Republicans and 27 Democrats voting in favor; 10 Republicans and 28 Democrats against, with 1 Democrat opponent not voting -- Sen. Byron Dorgan (D-ND), an ardent foe of NAFTA, missed the vote because of an illness in his family.

yeahright
Jun 2, 2008 at 8:59 p.m.
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rumor on the floor today is that Jan.12 the plant will be idled then we will build cars ???

familyof4
Jun 2, 2008 at 8:56 p.m.
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I think it would be smart to get a car in here, at least this plant is payed for, this would save GM alot of money.

jtmek
Jun 2, 2008 at 8:56 p.m.
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ok, just to add to the rumor mill. What I had heard is that we will be getting the Impala hybrid after a 6-15 month (different people said different times) retooling time. I certainly that rumor is the one to believe.

ctr1
Jun 2, 2008 at 8:55 p.m.
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I agree, I dont think bill clinton had this in mind, my brother was a big clinton/nafta supporter, i wish he were still alive to see what it really did. I to was a clinton supporter, but very opposed to nafta. but clinton proved to be a very succesful president.

truthteller
Jun 2, 2008 at 8:47 p.m.
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this is a direct result of NAFTA........ Thanks Bill Clinton.

ctr1
Jun 2, 2008 at 8:38 p.m.
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We`can always hope. Maybe if they do announce idling the plant plant as far as SUV's, that might mean a new product, we have to stay upbeat.

danias
Jun 2, 2008 at 8:34 p.m.
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I'm thinking we might be getting a car deal or something. Because they poored concrete upstairs and put in a few new offices so something is up. I don't think they would be doing this if they plan on shutting down the Janesville Plant, but we will all learn tommorrow.

familyof4
Jun 2, 2008 at 8:15 p.m.
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I heard we might get a car here in Janesville, has anyone else here this?

ctr1
Jun 2, 2008 at 8:08 p.m.
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Unfortunately I'm almost positive of our misfortune, We've known for awhile that full size trucks were headed down the tubes, president bush could have done more to avoid the situation, but chose not to. Now we have to accept reality and move on, and not give up, get out there and find new work for the janesville plant. We've been forced to change, now we have to look ahead to the future.
And number one, use this event to make your choices come november, theres more important issues then opposing gay rights, and right to bear arms. Your livelyhood is much more paramount.

packolies
Jun 2, 2008 at 8:04 p.m.
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Hate to say it but either they recieve a new product or this ole plant is history.. Should be interesting to hear what the brass has to say tomorrow but it's unlikely they will keep the doors open for one shift per day. I don't work for chevy but have worked in there many times as a contractor and would hate to see it go.. Good Luck

jleute
Jun 2, 2008 at 7:58 p.m.
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Gazette reporter Jim Leute here. Rick Wagoner will have a press conference at 7 a.m. CDT, followed by the shareholders' meeting at 8 a.m.

momof5
Jun 2, 2008 at 7:42 p.m.
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I fear that this will be bad news for this plant. However, it could potentially be positive. I have heard and read that GM is anxious to get the Volt into production. Perhaps they will idle the Janesville plant for the next 6 months or so (following the last dual shift day of June 26th) to retool the plant to accomodate the production of the Volt.
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This Mexico ordeal boggles my mind. UAW says you cannot park a vehicle on "their" grounds that was assembled outside of the US. WHY then are they not putting more pressure on GM to stop the outsourcing. I'm not union bashing, but, if there were ever a time and place for their existence in modern industrial America....that would be it!
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Does anyone know if UAW has any recourse against GM if they do infact close this plant? Wasn't that part of Gettelfinger's demands for the concessions the union agreed to--job security.
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PS--I probably wouldn't recommend holding onto the hope that this plant is still under current contract therefore Janesville is safe from having the other shoe drop. My guess is they can do whatever they want--and will.
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Any idea what time we should expect this news to be released tomorrow morning, Mr. Angus?

janesvillegirl72
Jun 2, 2008 at 7:39 p.m.
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I guess all the rumors are just that, rumors. However with the activity going on I have heard that January will mark the close of the plant here in town. Time to pull on the boot straps and try to keep Janesville from turning into Flint, MI or the likes of cities that the big 3 have pulled out of. I will continue to buy american but also hope as others have said repeal NAFTA. NAFTA has not been good to us and in addition to economic problems it has also led to easier drug trafficing over our borders and has been said to have been a factor in the problems in Juarez. Get rid of it!

dkush21
Jun 2, 2008 at 7:24 p.m.
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Yeah! They should close down the Mexico plant. And while we're at it, let's vote out Nafta and start making these companies produce in America!
No more outsourcing!!!

acejd93
Jun 2, 2008 at 7:23 p.m.
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It sure would have been nice to know about this "restructuring plan" while the buyout offer was still going on! Sure hope they offer another package.

Dr_Fever
Jun 2, 2008 at 7:16 p.m.
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ihavealife thats (two aspirin)

luvujvl
Jun 2, 2008 at 7 p.m.
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Cross your fingers. Maybe we'll get a new product line.

Dr_Fever
Jun 2, 2008 at 6:49 p.m.
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I know the secret BUT you will all have to wait until tomorrow (one who knows)

sueziq612
Jun 2, 2008 at 6:45 p.m.
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Even though it is in the contract to have a product,, It states only if the vehicles sells, and only if there is a demand..
so idleing or closing is in the future

tguy
Jun 2, 2008 at 6:30 p.m.
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Sad story but I`ve been telling my wife for about 5 years GM was going down. It was just a matter of time. When all they make is gas hogs
It`s the companies own falt. It had to catch up to them sooner or later. No one in the auto industry was concerned about fuel economy until now when it`s to late.

lablover
Jun 2, 2008 at 6:30 p.m.
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I heard 5 plants will be closing. Janesville 2010. I also hear that Mexico is one of them. I guess we'll all find out tomorrow.

gmretirednow
Jun 2, 2008 at 6:26 p.m.
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I guess tomorrow will be the determining factor for Janesville. I am sure there are many with low seniority who may be quite scared and I really do feel for all of you. I was lucky enough to take this retirement just offered and I do hope for you all the best in finding a new job if the plant does close. I would hope that local business's that are hiring would put a preference on your applications as I know they would be getting quality workers for sure!!

DDoright
Jun 2, 2008 at 6:25 p.m.
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I think the idle is inevitable anyway. Nobody is buying SUV's. 201 days on hand is alot of trucks.

DDoright
Jun 2, 2008 at 6:24 p.m.
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Actually according to our last national contract Janesville is good thru 2011 and GM said Janesville has a committment for the next generation of SUV starting in 13'. Let's see if they are good on their word or if the contract language is meaningless. I think all bets are off but we'll find out tomorrow.

RMaN4
Jun 2, 2008 at 6:20 p.m.
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I talked to someone at the plant and his gut feeling is that they are going to either shut it down or idle it.....

gravedancersunion
Jun 2, 2008 at 6:17 p.m.
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2010

sangus
Jun 2, 2008 at 6:11 p.m.
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The Gazette has spent much of the day talking to sources, including people in Janesville and elsewhere who would know if anyone knows.

As of now, no one appears to know. We, too, have heard all of the rumors, but our best determination is that they are just that - rumors.

We'll find out early Tuesday, and Gazettextra.com and the Gazette will have full coverage.

Scott W. Angus
Editor

sueziq612
Jun 2, 2008 at 6:06 p.m.
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Just heard from Person from GM Janesville, word is out about tomorrow CLOSING OF JANESVILLE Plant.. (NOT sure when though)
Doesn't sound very good...
God Help us all... Wish I could find out for sure.. Anyone have any news sources???

jvl4life
Jun 2, 2008 at 5:37 p.m.
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Hello? What about Mexico? American built in America for Gods sake!

lablover
Jun 2, 2008 at 5:15 p.m.
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I don't think we are going to hear good news for Janesville tomorrow......I wish it weren't true, but I'm afraid tomorrow is going to be a changing day for Janesville.

garyprimer
Jun 2, 2008 at 5:12 p.m.
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Yikes!

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