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Telegraph Herald - Dubuque, IA


 
Saturday, June 27, 2009
Wisconsin: Fate of GM auto plant uncertain
Factory could be reopened in the future if market demand increased.
BY DINESH RAMDE THE ASSOCIATED PRESS

JANESVILLE, Wis. -- The oldest plant in the General Motors Corp. family faces an uncertain future after the automaker decided against bringing new production to the recently shuttered facility in Janesville, Wis.

Instead GM chose the plant in Orion Township, Mich., about 40 miles north of Detroit, to build its next-generation small car. Wisconsin officials, who had hoped GM would return some 1,200 workers to the local production line, expressed concern and disappointment at the decision, but one former autoworker wasn't surprised.

GM confirmed the plant selection in a statement Friday, but said the decision is dependent on the outcome of negotiations between the company and the state on incentives.

The other site under consideration was Spring Hill, Tenn.

The Janesville plant would remain in "standby capacity," meaning it could be reopened in the future if market demand increased, GM said. It was originally placed on standby in May, one month after all production there was idled.

Wisconsin Gov. Jim Doyle said Friday he knew his state was facing an uphill battle against Michigan but said state and local officials still put together a competitive incentive package. The Democratic governor said he was "deeply disappointed" by the decision.

"I do not believe that Michigan matched us," he said in a statement. "I certainly hope that we were not used to simply leverage more resources for Michigan."

Other members of Wisconsin's congressional delegation were similarly disappointed. In a joint statement, U.S. Sens. Herb Kohl and Russ Feingold, as well as U.S. Reps. Paul Ryan, R-Janesville, and Tammy Baldwin, D-Madison, pledged to continue working on behalf of affected citizens.


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