Local GM plant still hoping for new product
JANESVILLE — As General Motors requests a lifesaving infusion of cash from Congress, it's still holding the door open to a proposal to manufacture a new product in Janesville.
Rep. Paul Ryan, R-Wis., and Rep. Mike Sheridan, D-Janesville, the new speaker of the Wisconsin Assembly, both said this week that they have heard from GM officials on the subject.
The good news: GM is not saying "no" to the proposal that Janesville and Wisconsin leaders presented to GM leaders in Detroit on Sept. 12.
The proposal, which is being kept under wraps, would have GM replace the SUV line that ends Dec. 23 with some new product.
"I'd rather have our plans on hold than have them rejected, so we're getting the best we can hope for in Janesville," Ryan said.
The bad news: GM can't do anything with the proposal until its future is secured. GM executives told Congress this week they need $4 billion to avert a cash crisis by the end of this month and as much as $18 billion in federal loans during the next year.
"Obviously, they can't sit around and strategize expansions when two weeks from now they may be in court filing Chapter 11 (bankruptcy)," Ryan said.
The U.S. Senate is expected to vote next week on assistance for GM, Chrysler and Ford.
One thing the assistance package won't include is any requirement that GM do anything in Janesville, Ryan said.
If something were done for Janesville, that would open the door to other states also facing plant closings, Ryan said.
"Our plans are on hold. All of these things are on hold. You can't say, ‘Commit to Janesville or else you don't get this,'" Ryan said. "My (congressional) colleagues won't commit to that because they'll want GM to commit to their towns," and GM is not in any position to be opening plants.
Ryan noted GM's survival plan calls for closing nine more plants by 2012, so talk of a new line in Janesville is premature.
"GM has to survive in order for us to get a positive decision made, that's for sure, and right now GM is in a fight for its survival," Ryan said.
However, Wisconsin lawmakers take every opportunity they have to discuss the Janesville plan with GM executives, Sheridan said.
Sheridan was in Washington, D.C., on Thursday and got into the Senate hearings on the auto bailout with the help of Sen. Herb Kohl, D-Wis.
Sheridan said he got in ahead of the crowd and was lucky to get 20 minutes of face time with GM CEO Rick Wagoner and United Auto Workers President Ron Gettelfinger.
Sheridan, the former president of UAW Local 95, said he has a good relationship with Gettelfinger, who made sure Sheridan was included in an informal discussion.
Sheridan suggested that the new local labor agreement, which was expected to save GM $120 million a year if GM brought new work to Janesville, could become a model nationwide as GM looks for ways to save on production costs.
Sheridan said Ken Cole, GM vice president for global public policy and government relations, spoke highly of the local/state task force making the Janesville proposal.
"They are interested in that, and they really want to do something for Janesville, but obviously there are a lot of problems they need to overcome before they could even think about something like that," Sheridan said.
Task force members just have to wait to see how forces "way beyond" their control play out, said Tim Cullen, who is leading the group with Brad Dutcher, former Local 95 present who now works for national UAW services.
"The news can be discouraging, but it doesn't change what we started out to do," Cullen said. "We knew when we began way back in late June that this was somewhat of a long shot, but we think the proposal we have in front of them is a serious one."
The volunteer task force still meets weekly to discuss courses of action and how to make Janesville more attractive, he said.
Cullen pointed out one clear fact: Even if the group succeeds in bringing a new product to Janesville, there will be an extended period when nothing is produced at the plant after the SUV line ends Dec. 23.
"It's going to be a period of time—whether it's 1 1/2 to 2 years—before there's production of a new product if we are successful," he said.
Reporter Gina Duwe contributed to this story.
Dec 12, 2008 at 1:42 a.m.
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It will pass eventually. Much like the TARP bailout, they vote no at 1st. Add a few hundred more pages to the bill. Tack on a load of pork give outs, and THEN you will get the needed votes. Don't worry about it, they WILL get it, trust me on this one!
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Markets are likely to be SMASHED down tomorrow! EXCELLENT news for all those taking my advice and shorting GM!
Dec 12, 2008 at 12:46 a.m.
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Auto industry bailout plan dies in the Senatehttp://www.msnbc.msn.com/id/28166218
"We were about three words away from a deal," said Sen. Bob Corker of Tennessee, the GOP's point man in the negotiations, referring to any date in 2009 on which the UAW would accept wage cuts.
UAW could have worked for less but in the end decided to work for nothing. Sad Sad Sad.
Dec 11, 2008 at 6:02 p.m.
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QUIT stalking me coast! haha
Yeah; that was a pretty easy call on the short sell. The basic rule of "buy on rumors, sell on news" does normally hold to form. Nice 20% two day gain on the play if you covered today. Ideally you can cover, and just short it again. It's like machine gun fire when the shorting train gets rolling!
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TCU in the Poinsetta Bowl at -2.5 looks like it will be my big college bowl game wager, BTW.
Dec 11, 2008 at 2:54 p.m.
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The kiowamohican express train keeps on rolling along!
Posts to short sell GM stock on Dec 9, and low and behold it drops about 20% in two days!
Your cynasism always cracks me up, but your usually dead on with your calls. Tell us your big college bowl play. I need some new years $$$ the way this economy is going!
Dec 11, 2008 at 12:51 a.m.
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Unidentified:
Your dead on with your comment. This is just pure window dressing at its best. OF COURSE they are going to pass something so they can all come back home and say "we care about the working class people". When in reality, this bill is a watered down joke.
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The CEO of Ford had what I think is a BRILLIANT idea. He said they may REFUSE the bailout money!! Not only would that play awesome in the PR (I know if I was looking to buy a new car, I'd have a hell of a lot more respect for a company that said we can get through this on our own), but it could also give them a decisive advantage in the market. As they will not be restricted to all the garbage that is attached to this bill which is dictated to the soul authority of a "car czar" (no joke)!
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Whoever this clown is, he/she will basically be able to tell them what to build. If GM goes the route of this bailout, and Ford does turn it down, I would just load up on Ford stock for the long term. You could be burned if they go under, but if they do pull through it; your looking at massive gains in the future. They will have a FAR superior product not having to answer to some clown in DC telling them what they can build and where their resources go.
Dec 9, 2008 at 8:50 p.m.
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thanks. Here is another http://www.belshe.com/2007/10/10/uaw-kil... I don't recommend Union members to click the link
Dec 9, 2008 at 7:53 p.m.
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anaomouse great article
Dec 9, 2008 at 6:05 p.m.
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Honestly, a bailout at this point is so watered down and loaded with guidelines and discloser's, that I think they would be better off just filing for bankruptcy. Lawmakers are more worried about polls than doing what is needed. As a result, the bailout has now taken on an almost useless form, which does nothing more than by the big three a few more months if that. It does however make it "look" as though Washington really cares about the jobs related to the big three. Pure politics from the left and the right in play here.
Dec 9, 2008 at 5:41 p.m.
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http://foxforum.blogs.foxnews.com/2008/1... A good read relevant to the topic at hand.
Dec 9, 2008 at 5:29 p.m.
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Good time to short sell GM stock again. The price has went up about 200% the last few weeks, because everyone knows they are going to get this welfare, errrr bailout, errrr loan. A government grant is actually the most accurate term.
The stock price will likely fall sharply once the bailout passes congress, as the smart $$$ gets the hell out while the dumb $$$ buys in.
Dec 9, 2008 at 5:11 p.m.
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Hope you were nice to all the fibs, because thats where the jobs are.
lmao
Dec 7, 2008 at 8:01 p.m.
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getreal112 - put down the pipe. Your chaotic rhetoric is obviously confusing. Nobody understands what the he** you are talking about.
Dec 7, 2008 at 7:48 p.m.
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People I hope your all smarter than a fifth grader, G.M is a Dinosaur and pretty soon it will be exstinct to
Dec 7, 2008 at 7:12 p.m.
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I know and really it pointless to explain, there are those that do get it. Its to late for people to get the point I was making. It seems its already a done deal for GM here in Janesville which is a shame.
Dec 7, 2008 at 7:03 p.m.
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getreal112- I don't have any idea what your point was!
Dec 7, 2008 at 6:59 p.m.
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almeg you just made my point oh my. I was responding to esby about lear.
Dec 7, 2008 at 6:45 p.m.
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getreal112-What!???!
Dec 7, 2008 at 6:08 p.m.
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I think that is what is so frustrating to people that there does not seem to be must thought or care for the companies they affect. Its a kind of arrogance that one company is entitled but others are not, that if a few sacrifices were made from the top all the way to the bottom other companies that they affect would not be already out of business or laying off all their workers. It is not JEALOUSY it is again the arrogance comming through. A little less greed would have protected not just their own jobs but also of many more american companies that they affect.
Dec 7, 2008 at 5:57 p.m.
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GM stays, but who's protecting Lear? Unfortunately the little company's that make things etc for GM in Janesville are not included in these big talks about saving GM. That's too bad.
Dec 7, 2008 at 1:04 p.m.
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Joker-(thanks by the way, if you meant it)-"I am ready to make this city better. Who else is?" I'm thinking those people with concern for the future of the city are as easy to spot as those who haven't thought past the end of next week, just by reading the type of comments they make. Those who wish all sorts of ills on the GM people just because of how easy they (are perceived to) have it, can't imagine-or don't care-that those workers might just be among the first of an entire string of dominoes to fall, affecting almost anyone in the immediate vicinity who has ever put any effort into making something of their own life. (Not to mention the larger scale cause /effect) It most likely won't make a lot of difference to those who look forward with glee to GM's fall (at least-not that they've thought of)-not because they've got everything they need, but because they have nothing to lose.
The rest who wish things would go back the way they were, even if just to keep things relatively stable-would be the ones who would be "ready to make this city better." But of course, this is just logic, and most people who have given the situation any thoughtful consideration already knew this.
I like to think that I do a bit for the betterment of my community-so far I have not reached the "give 'til it hurts" point, but I think I've been somewhat successful in the "Give 'til it helps" category-but the worse things get, the more I realize that is pitifully inadequate.
Dec 7, 2008 at 10:38 a.m.
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Why would a company that has no money, venture into a hundred million dollar line change, just to make new hybrids, that a majority of the public does not even want. I got my fingers crossed for you, but a new plan might be in order...
Dec 6, 2008 at 10:46 p.m.
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Wow, these last few comments are filled with some good insight and logic. Well said and good job, "unidentified, ruserious and usaret" I am ready to make this city better. Who else is?
Dec 6, 2008 at 10:07 p.m.
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It is hard to remain positive with all that is going on right now, but somehow someway we will survive.
Janesville WILL survive and its citizens will again thrive. It may not be the Janesville of our parents or grandparents but it will not be just a bedroom city for Rockford or Madison.
Janesville has much going for it regardless of a few faults. We are not the perfect city but we are a city.
There is someone out there who has an idea, who just needs the proverbial kick in the pants that will provide an opening for the survival of this city. Could that someone be you?
Janesville has pulled through tough times before and was the better for it. Tho I don't always agree with TheJoker, he/she is right. There is no guarentee that GM will return even with the bailout. But we cannot sit back and wait for someone else to solve our problems. Yes, we may need their help to get going again over the long run but we need to help ourselfs, our friends and neighbors now.
We make Janesville what it is. We decide our future. What do we want that future to be and how can we work together to make that future come true?
I like most of you believe in Janesville but can Janesville believe in us? It takes but one candle to light the way!
Dec 6, 2008 at 9:45 p.m.
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Unidentified, could it be a silver lining then (for more than just laid off GM workers) that their benefits will be enough to sustain them for awhile so that those laid off workers whose compensation is less and who might want to look for work sooner rather than later could possibly find it? Although, I know a handful who've been off work with GM for some time now-I think it was in the summer months, wish to return to work (somewhere else)rather than wait it out-and several have returned to school to prepare for that. Apparently some "onlookers" have stated, though, that they should allow other unemployed people those available jobs because those others need it more. On the other hand, some have complained that they should not get as much compensation as they do, and certainly not for so long. I guess, whichever they do, stay home and collect good compensation, or vie for available jobs, someone won't be happy-so we can only hope that it works out in the long run for everyone.
Dec 6, 2008 at 9:01 p.m.
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At this point we can be fairly sure that even if GM stays, it will be a few years before this plant is fully operational again. As a result, city leaders and state reps need to concentrate on alternatives. Unemployment benefits will likely run out for many before GM reopens (if it does). Last I checked, the entire state of Wisconsin only had 5700 full time job openings. I'm not sure of the total population of the state, but I can say with certainty that 5700 openings isn't adequate for the number of people laid off. A majority of those jobs are in the medical field and most that aren't medical related pay less than 14 dollars and hour. Granted, this is a nation wide problem, but I don't want to see Janesville, or Wisconsin for that matter, falling asleep at the wheel. We need to prepare ourselves for when the economy turns around at be at the forefront of future job growth. Right now the weather conditions, high taxes, and lack of technical education (in some regions) are working against us.
Dec 6, 2008 at 8:27 p.m.
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usaret - I try to be positive, it's just so hard! I'm the new kid in town and have fallin in love with Janesville and the people here. I, and many others, are afraid for our beloved city! In the 80's the town I lived in lost almost all of it's manufacturing jobs to overseas companies. It pretty much destroyed the town with the trickle down unemployment. I hope and pray Janesville can get through this!
Dec 6, 2008 at 8:23 p.m.
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Thank you Ms. Leo. All you can do is try.
Usaret, I am trying to be positive and do something about the tailspin of Janesville. But we need to talk facts and what is real. Not this silly GM is staying talk and there are no gangs in Janesville nonsense.
Dec 6, 2008 at 8:09 p.m.
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Close the gates, role up the carpet, lock the doors-----fact is fiction and fiction is fact. Rumors abound from the fertile minds. Proof is never presented only implied--Lets keep the gossip mill open and eventually someone will take it seriously and start to panic. Granted, many comments seem to attempt to provide useful information and for that we are gratful but lets stop trying to rile peoples emotions just because you can. If you must, try to rile those emotions which are productive instead of destructive. Opinons are a dime a dozen and some, while interesting in the least bit, contribute nothing except to muddy the situation and prolong the agony. Let's hear some positive comments on what can be done to help the local situation. While it might be fun for a few to make snide comments about spelling, etc., it certainly isn't helping to find ways to prevent further deterioration of our city and help our citizens. Their are many fine brains out there that with a little positive prodding can help us survive this current economic downturn in our fine community.
Dec 6, 2008 at 8:03 p.m.
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and I am sad that so many retail stores are going to leave! I've only lived here for 4 years and really like Janesville! I hope we can recover quickly! I don't want to move away!
Dec 6, 2008 at 8 p.m.
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joker your right. When I was in 3rd grade untill I was in 9th grade I had lymphoma and missed ALOT of school. Not to mention how the fevers of 105+ fried my brain a bit. So sorry if I offend you with my poor spelling even though I use spell check LOL LOL. I promise I'll try to do better just for you sweetie.
Dec 6, 2008 at 7:31 p.m.
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"Gonners" Ms Leo? Someone must of missed spelling class.
Thank you MoMo. I wish I had better news to tell everyone. But it is true.
Dec 6, 2008 at 6:13 p.m.
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JOker: I hate to say this, I really do, but you are pretty farn close to being right. The parent company of the Janesville Mall, CBL, is in dire straights financially: 5 million in debt. With them losing HUGE (30,000 square feet and more) stores plus smaller box retailers in just a 50 mile radius, they will be hard pressed to not follow in the footsteps for General Growth Corporation. They are also a retail shopping center giant and their stocks, while not bankrupted yet, are teeter at $1.00 or below. Have you been to Mayfair or Woodfield yet? Both, when you exclude temporary Holiday tenants, have atleast 15 open storefronts.
Dec 6, 2008 at 5:49 p.m.
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garyprimer
Ich bin aus Gummi,
Du bist aus Klebstoff.
Was Absprünge aus mir!
Sticks an Sie.
Gary primer the tires are made from 80% rubber
the hubcaps are 10%
and the front bumpers are 10%
making a total 100% get your facts straight..
Dec 6, 2008 at 3:41 p.m.
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I would appreciate it if you wouldn't call me dumb. I may not be a college grad but I do not think I am dumb.
Dec 6, 2008 at 3:37 p.m.
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ihavealife- why do you keep comparing me to curly? I do not share her opinons and would like you to stop.
Dec 6, 2008 at 3:05 p.m.
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crashman2u- you better watch out = joker the highly educated = will get you for your misspelled words. Even though you are educated enough to work in aerospace he will call you ignorant.
Dec 6, 2008 at 2:44 p.m.
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I have worked in the auto industry for over 15 years and i have also worked inside the gm plant and at the chrysler plant in belvidere.I have seen first hand and not all employees, but atlea st half were worthless, not hardworking and overpaid. from having a cooler of jello shots on the line to crack pipes in the bathrooms. now most auto workers do not own anything,they get a job and gm and chrysler and oversextend their wages.i am not disgruntal or jealous i now have a great paying job in aerospace. i make enough to pay my bills and my family is happy.the one major reason the autoworkers have to, and i mean have to have all this money from the union and gm and the state or feds after they lose their jobs they were over payed to begin with is because they have noo skills to make the same amount of money outside of the plants.good luck but you and your union brought this all on yourself.got greedy , now pay the price,i have a gm and chrysler products in my driveway, And i swear i will never even by another one even if they are used,they are both junk and not even five years old.AND only worth a third of the price i paid 6 months after purchase.
Dec 6, 2008 at 2:18 p.m.
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Seriously, is Penny's in Janesville scheduled to close? How did I miss that in the newspaper?
Dec 6, 2008 at 1:46 p.m.
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Ich bin aus Gummi,
Du bist aus Klebstoff.
Was Absprünge aus mir!
Sticks an Sie.
Dec 6, 2008 at 1:16 p.m.
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hey joke- you forgot Home Depot and Old Navy. Gonners next year too!
Dec 6, 2008 at 12:13 p.m.
Dec 6, 2008 at 11:47 a.m.
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You will start to see more closings of stores after the first of the year. All though many have started all ready like Turf ended yesterday. But more like J.C. Penny's and that will be closing in 2009 When that starts that's a sign of a mall in trouble. Resturants will be closing. I know at least two barbers whose business is down. Churches and non-profits are hurting so they can't help people. Taxes will have to go up. Unemployment will skyrocket and yes that's just in Southern Wisconsin. So all you people who are happy about GM closing, wait to it affects you.
Dec 6, 2008 at 11:25 a.m.
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I continue to be amazed at the poor spelling and grammar of people on this board. Come on people, you are making the City of Janesville look bad. Spell check please!
Dec 6, 2008 at 11:23 a.m.
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Gary, yes it is not the fault of the workers. It is also not the fault of UAW, GM management or the economy. It is the fault of little green men.
Dec 6, 2008 at 10:37 a.m.
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Janesville will almost certainly loose some residents, but its becoming a ghost town is highly unlikely? I believe that there is a greater change that it will, over time, become a "bedroom community" for Madison, Rockford and perhaps even Milwaukee.
Dec 6, 2008 at 10:24 a.m.
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"Congressional Democrats and the White House have reached agreement on emergency aid for US carmakers of between $15bn and $17bn, two senior congressional aides said on Friday."
http://www.ft.com/cms/s/0/cd01e9b8-c350-...
Dec 6, 2008 at 9:54 a.m.
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More businesses are cutting back employees because of the economy. GM, Lear, etc. shutting down means our taxes will be even higher than they are now. We are already overtaxed in this state as far as I'm concerned. Watch and you will see more and more people will be leaving Janesville because of job losses, forclosures, higher taxes. Janesville may become a ghost town sooner than you think.
Dec 6, 2008 at 9:50 a.m.
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Of course it is not the fault of the workers.
Dec 6, 2008 at 9:28 a.m.
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It's not the fault of the workers. The work force here is great. GM knows that and most of the industry knows that we have a great workforce here. It's just to bad the taxes here are so high to bring in another product.
Dec 6, 2008 at 9:14 a.m.
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Good Luck Janesville GM, I don't think a new product is coming! False hope maybe!
Dec 6, 2008 at 9:12 a.m.
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This whole article is just insane. The Gazette should be ashamed for promoting the idea that GM may be coming back. GM will either be bankrupt and restructured or sold off into pieces. GM IS DONE IN JANESVILLE!
Everyone, please wake up. I hope that laid off GM workers are not holding off job searches based on this false hope.
Why is all the talk about GM workers and nothing is mentioned about Lear or LSI? Do we assume that if GM stays, Lear and LSI would stay as well? What proof do you have to back this up?
Dec 6, 2008 at 8:49 a.m.
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You have to applaud Local 95 for the ( a little too late) work done on the local contract. If GM was healthy, the Local would have been on the receiving end of wrath from other Locals as the progressive contract would be considered 'whipsawing' the others for product. I just wish that they would have been this progressive 10 years ago (even 20). It would have saved many jobs, and might have even put GM in position to weather this economic downturn. What I don't understand is; how come GM isn't financially viable? Is all of their overseas operations losing money also? Are they so heavily dependant on North American operations that the company goes as NA does? So much for spreading your eggs in other baskets.
Dec 6, 2008 at 5:33 a.m.
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GM is not in a position to say "no" to any govt official right now with them asking Govt for help. But after they get healthy (if they do)???
Dec 6, 2008 at 1:25 a.m.
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"Sheridan said he got in ahead of the crowd and was lucky to get 20 minutes of face time...."
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That can't have been easy to score under the circumstances. I applaud Sheridan for an exemplary effort.
Dec 6, 2008 at 1:21 a.m.
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LIKE I SAID,IT AINT OVER UNTILL THE FA- LADY SINGS,HATERS!!!!
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