Michigan chosen to build GM's small car
DETROIT (AP) — Michigan has won the high-stakes competition with two other states to build General Motors Corp.’s next-generation subcompact car, a person briefed on the decision said Thursday.
The announcement that the car will be built at a retooled midsize car factory in Orion Township near Pontiac will come Friday, said the person, who spoke on condition of anonymity because the plan has not been made public. It will save about 1,200 jobs at the factory, which had been slated to shut down later this year.
GM spokeswoman Sherrie Childers Arb declined to comment on whether GM had made a decision. The Orion Township plant, about 40 miles north of Detroit, had been in competition with GM factories in Janesville, Wis., and Spring Hill, Tenn., to build the car.
The Orion plant now makes the Pontiac G6 and Chevrolet Malibu midsize cars, which also are made at a factory in Kansas City, Kan.
GM announced when it filed for bankruptcy protection June 1 that the Orion and Spring Hill plants would go on standby status later this year, meaning workers could be called back if the company needs to increase production. The Janesville plant already closed in April.
GM also is likely to announce that its Pontiac parts stamping plant will be retooled to make parts for the new car, based on the Chevrolet Spark. About 1,000 jobs could be saved there.
Michigan, Wisconsin and Tennessee all offered incentive packages to GM in an effort to lure the plant. All 17 members of Michigan’s congressional delegation sent a letter to GM last week saying that the state’s economic woes — including an unemployment rate that hit 14.1 percent in May — made the project important for Michigan. They also said it was a sound business decision.
The delegation made the point that GM plans to close or put on standby seven of its Michigan factories by the end of 2010, including three in Oakland County, home to the Orion plant. It said GM could mitigate some of the consequences for workers and surrounding communities by moving production of its subcompact car to Michigan.
State officials wouldn’t describe the incentive package it presented to GM.
A spokeswoman for Michigan Gov. Jennifer Granholm declined to comment on whether the state had been chosen.
“The governor has said from day one that we’re going to be aggressive in going after this project and these jobs it will create,” said the spokeswoman, Liz Boyd.
Sen. Carl Levin, D-Mich., said late Thursday that he had not been informed of GM’s decision.
“We’ve worked our heads off to make that happen,” Levin said. “We’ve done everything we can possibly think of.”
Earlier Thursday, Tennessee Gov. Phil Bredesen said the state’s bid for GM to pick Spring Hill was “nothing like” what GM had originally sought. Bredesen told reporters earlier this month that his impression from meetings with GM officials was that the company wants a large cash payment and not long-term tax incentives.
Lee Sensenbrenner, a spokesman for Wisconsin Gov. Jim Doyle, declined to comment.
Childers Arb said earlier this week that a team of GM officials was working on the site selection and the company plans to make a decision by June 30.
The automaker had said in documents submitted to Congress that it planned to produce up to 51,000 subcompacts per year in China and ship them to the U.S. starting in 2011.
But in May, after the United Auto Workers union approved contract concessions, the company said it would build the three-door hatchback in the U.S. The Spark has a small turbocharged four-cylinder engine and is about the size of a Honda Fit or Toyota Yaris. It is set to go on sale in Europe next year.
GM’s decision leaves about 2,500 Spring Hill employees wondering what is next for them. Their plant recently underwent a $600 million overhaul to build the Chevrolet Traverse, but that crossover vehicle will now be built at a factory near Lansing, Mich.
Todd Horton, spokesman for UAW Local 1853 in Spring Hill, said “no one is going to comment until we get the official announcement.”
He said a news conference was planned for Friday morning at the union hall to discuss the employees’ futures.
Jun 26, 2009 at 6:16 a.m.
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Neo-What are you babbling about? Stop dwelling in the past and move on.
Jun 26, 2009 at 5:55 a.m.
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As in any case, we shall await the anouncement. Snide opinions are like heartbeats. We all have one. The plan is evident to insiders, from a economic/business stand point. Let the assistence run its course. Expend the general funding to aid displaced workers, run its course. Get as many off the old pay-scale, by force. Center the redevelopment in a location where the local community actualy supports the company, people and future prospects.
To those whom still wish to continue to bash the workers that are in hardship, I wish you well. The dominoes still haven't impacted the area as of yet. This shall start slowly, and then it shall slam your mouth shut. The total disreguard for people facing very difficult financial times, the constant hatred and jealouisy, the uneducated and unjustified bashing, will be put to a rest, yet with no one to bash, you may continue to bring this up in retrospect. Then we too can laugh with you. Or take away your job from you.
Imagine working hard for 30 years. The physical labor taking its toll on you. It was real work at GM, contrary to what the idiots think and believe. We cannot argue with the mentaly impared. And we know they are such a stand-up group of perfect citizens. We shall respect them for their incomptence, their ineptatude, and their mean spirit as we always have. It was tollerated not because we worked there. It was tollerated because we understood your perspective, and respected your freedom, and we were too tired from a regular day of real hard work to give two tinkers darns.
I wish to take an oportunity to say to those whom I have not been in contact with, it was a pleasure to have worked, for so many years with such an upstanding group of dedicated, intelligent, honest to gaud good people.
I would hope the tavern-slammers, and the armchair wariors would begin to slam in the correct direction now. Let the common man relax, and refrain from the negatives toward honest hard working people as, someday you too may actually close your mouths and transpire to become one.
Good luck on all your future endevours my friends.
Jun 26, 2009 at 3:14 a.m.
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Quote "not if and when the Great Pumpkin, tooth fairy and Santa Clause all hold hands around the campfire singing kumbaya." un quote
Thanks Creature, I needed a good laugh, I almost pissed Myself!
Jun 26, 2009 at 12:04 a.m.
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did you actually think it wasnt going to be?
Jun 26, 2009 at 12:03 a.m.
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Is Janesville out of the picture now, to remain closed or is it on "standby" in case GM needs more production?
Jun 25, 2009 at 11:53 p.m.
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Well at least the Governor can stop pretending like he actually is in support of private businesses now and get back to dismantling the state's economy.
Jun 25, 2009 at 9:45 p.m.
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It is sad that Janesville wasn't choosen, I am sure Spring Hill feels the same as would Orion if we were the plant picked for the new line. 2 out of the 3 plants had to lose, unfortunately we were one of the 2 who lost. I am just glad that they are keeping at least one more plant up and running even if it is Michigan.
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Good luck to all, and here's hoping Janesville gets on track to economic recovery soon.
Jun 25, 2009 at 8:48 p.m.
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This is horrible news, and leads me to commit to never buying a GM vehicle again. This is just another poor decision made by the failed company. It's a shame that public funds have been used in a futile attempt to save GM, which is doomed to disappear.
Jun 25, 2009 at 7:37 p.m.
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It is a bummer, but we can't put all of our eggs in one basket. For you that have, lesson learned...
Jun 25, 2009 at 7:02 p.m.
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They picked Michigan because they know Doyle, his buddy Feingold, and their ridiculously large taxes on businesses will eventually drive thousands of businesses from Wisconsin anyway.
Jun 25, 2009 at 6:56 p.m.
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Now will this put an end to all the G.M talk in Janesville, The coffin Lid just Slammed shut.
Jun 25, 2009 at 6:53 p.m.
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what I would like to know is how long will the city let it stand idle and become an eyesore. Is there usually a time frame?
Jun 25, 2009 at 6:36 p.m.
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I think GM is afflicted with "Brett Favre Syndrome". They keep going back and forth, leading us all on, just so they can continue to be the focus of discussion. Narcissists on a corporate level.
Jun 25, 2009 at 6:19 p.m.
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I think they just used Janesville and Spring Hill to get Michigan to give them more. We were just pawns. I wish all the 86'er's well and anyone else that has a lot of time in at the plant. :(
Jun 25, 2009 at 6:14 p.m.
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Everyone who was looking at this from an objective viewpoint knew this was how it was going to end. GM in no way "destroyed" Janesville. There was simply poor planning on Janesville's part to rely so heavily on one employer. The Beloit reference is a good example of how to revitalize a community, albeit on a smaller scale. The dismantling of Beloit Corp. was a blow to that city, but there were other businesses that were entrenched to help with the economic burden after that loss. Huge credit should be given to Ken Hendricks as well. He was a visionary who played a major role in at first stabilizing and then growing the businesses in that community.
Jun 25, 2009 at 5:56 p.m.
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While Janesville GM, probably had the best workforce, very old plant, no stamping plant in 400 mile radius, 300 - 400 miles from supplier bases in MI, Ohio, IN -- decision was not hard to make from GM's point.
Jun 25, 2009 at 5:52 p.m.
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I'm among those who feel GM's return to Janesville is a pipe dream and I'll never own another of their products. Eventually they will simply walk away from the plant and we'll be saddled with the enviromental cesspool that will be their Janesville legacy.
Jun 25, 2009 at 5:49 p.m.
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OK...GM Janesville is dead...and so is Michael Jackson. Maybe we won't have to continue to be subjected to seemingly endless news about either subject.
RIP GM and MJ.
Jun 25, 2009 at 5:10 p.m.
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I have three letters that I think are extremely appropriate: F G M.
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GM destroyed this community. They had the opportunity to help fix that. But instead, they gave in to Michigan's metro Detroit area. As if Detroit and the surrounding communities aren't on a one way trip to the poverty. Except for the executives, that is.
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Oh, great job with the task force, Doyle! Remember, Cullen didn't even know what cars were built at what plant. And part of his job was to keep GM in Janesville? Sounds like the whole task force was a FAILURE.
Jun 25, 2009 at 4:58 p.m.
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Sorry, meant the Beloit Mall in Beloit, not Janesville.
Jun 25, 2009 at 4:57 p.m.
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Final nail? It has been driven in countless times! The plant will become an eyesore more than it already is and will be a headache for the City Council for many years. GM will continue to make broken promises regarding the physical plant, the bankruptcy courts will muddy the waters even more and finally Janesville will buy the property for a $1 and then spend countless dollars on studies and consultants before it is torn down. I have seen it so many times in other communities. Google the Wagon Wheel in Rockton, Beloit Mall in Janesville and the MacWhyte Wire Rope Company in Kenosha as a few examples of what can happen to the GM physical plant. We have some tough days ahead of us.
Jun 25, 2009 at 4:55 p.m.
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Really too bad...a lot of history there. Also too bad the plant site is an EPA nightmare having been a dumping site for every chemical under the sun during the non-green period of, oh let's say from the plants inception until 1980's. Good luck re-using that property! I heard that's why GM steered clear...
Jun 25, 2009 at 4:44 p.m.
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The speculation on if Janesville will get overflow production, etc will continue. Complete waste of time to even think about it when the area needs jobs now, not if and when the Great Pumpkin, tooth fairy and Santa Clause all hold hands around the campfire singing kumbaya. At least the city and state government have shown a willingness to bring in jobs with incentives. Now just focus that on real jobs and real companies that are ripe for relocation. Janesville will only be doomed it we just sit and wait.
Jun 25, 2009 at 4:32 p.m.
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I'm really not convinced that population will decrease dramatically. We grew as a city even as GM cut shifts and thousands of jobs. We might not see similar growth for a few years, obviously.
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If you're sick of hearing about GM, well, get used to it. They still own the plant, and as long as GM's business is in limbo, we will be too. It ain't over until they actually sell off the property. Until then, it's reasonable to expect a full-court press by the task force to reopen, as GM will be the best bet. But it won't happen unless sales rebound, and that may not be likely for a variety of reasons. So, yes, we'll be hearing about it until the final nail is driven.
Jun 25, 2009 at 4:30 p.m.
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what a punch to the gut, albeit expected... here's to hoping for new industries, new jobs and new opportunities...
Jun 25, 2009 at 4:22 p.m.
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Saddened but not all that surprised. There are many comments here and I agree -- it's now time to move on...
www.spend-local.com
Jun 25, 2009 at 4:20 p.m.
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Ihavealife, Janesville will be very different than it was a few years ago. Population will decrease dramatically, city and school services will be cut and more businesses and jobs will leave our great city. Sad but true. People need to accept this and find new ways to keep and bring jobs to Janesville. We should look at the good things Beloit has been doing over the years as inspiration.
Jun 25, 2009 at 4:04 p.m.
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I wonder if "the door is still open?" I also wonder how many more articles the Gazette will have on GM coming back to Janesville or some other spin from Mike Sheridan and the GM Task Force. Talk about beating a dead horse.
Jun 25, 2009 at 4:04 p.m.
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If this is true, it is still not completely over...supposedly, the Janesville plant will now be put on "stand-by" status....while I do not really know what that means in terms of reality (and my grandfather, a GM pensioner [and still involved in union activities], could not shed too much light either), at least the rhetoric has been that Janesville **could** be in use to build GM products once again if there is need...I suppose the bad side to this would be if GM just sat on the plant, did nothing with it, did not sell it, and it just sits idle, becoming a gigantic eyesore, let alone what it does to the environment. Also, the question now begs, how high up are we on the "stand-by" ladder? When (and it will one day) the economy gets going again, it is **possible** that they could be building GM cars here again before we know it...of course that might be a bit optimistic.
Jun 25, 2009 at 4:02 p.m.
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That is too bad, but now Janesville can move on to other things. A good chance for change and hope another big employer will move in and find out what hard working people we have in this community.
Jun 25, 2009 at 3:59 p.m.
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Well damn.
Jun 25, 2009 at 3:54 p.m.
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I knew it this would happen........ Lets all move on...........
Jun 25, 2009 at 3:49 p.m.
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Sad news for Janesville. Now we need to move on finally and find new industry for Janesville.
Jun 25, 2009 at 3:46 p.m.
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I knew it. Good luck to Janesville. What a waste of time for those involved to keep the plant open here. Should have invested time money and energy into another employer(s)
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