Hope remains for GM plant

By JIM LEUTE ( Contact )   Wednesday, April 22, 2009
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— The General Motors assembly plant in Janesville is one of the automaker's biggest and oldest, two factors that some analysts have said explain why it soon will be a facility without a product.

But a local coalition is apparently banking on the plant's size as reason for the automaker to stay in Janesville.

Forward Janesville President John Beckord said Tuesday that the Janesville plant could play a role in the revitalization of the struggling automaker.

The plant's 4.8 million square feet would make it ideal to build multiple vehicles on one assembly line, much as BMW is doing at a plant in South Carolina.

"If the market comes back and GM can come up with the right product mix, there is a scenario in which this plant could come into play," Beckord said in comments to the Wisconsin Technology Council, which met at Blackhawk Technical College.

"That plant is so big that you could do multiple (vehicles) under one roof, perhaps as many as three different vehicles."

Late last year, a local coalition traveled to Detroit to present GM officials with a plan to keep some sort of vehicle production in Janesville. The multi-line production model was just one component of the group's proposal.

GM officials didn't say no to the group, but they didn't say yes, either. What they did say was that they'd meet again with the coalition.

But that was about the time GM started running into financial problems that have led to government loans and restructuring deadlines.

The Janesville group is still waiting to hear back from Detroit.

Beckord said that with the exception of about 1.5 million square feet, the Janesville plant was built or remodeled after 1975.

The group's multi-vehicle plan for the Janesville facility includes a shared paint department and is based on the work of hired consultants.

GM, he said, has way too much capacity for its slice of a U.S. market that used to sell 16.5 million vehicles a year.

At a U.S. production level of 9.5 million vehicles per year, GM could cut capacity across the country and consolidate the production of two or three vehicles in Janesville, Beckord said.

BMW's plant in Greer, S.C., builds X5 sports utility vehicles and X6 sports cars on the same line. Producing multiple vehicle types under one roof gives BMW the flexibility to change its production mix to meet market demands.

Beckord said the coalition's plan was well received in Detroit. So was the local union's ratification of a local contract that's considered a benchmark in the industry.

"That raised some eyebrows in Detroit," Beckord said. "We did everything we could to create the right situation in Janesville.

"In the end, though, it may not matter."

Gov. Jim Doyle, who appointed the local coalition, said Monday that he's waiting for a federal taskforce on the future of the auto industry before declaring the ultimate fate of the Janesville plant.

Doyle told a gathering of United Auto Workers officials that GM reps have told him in the last couple weeks that they continue to look at the Janesville plant as a possible manufacturing site.

"But I don't want anybody to draw any false hope from that because they always have been very clear in saying to me, ‘Look, we're dealing in a really difficult situation right now,'" Doyle said.

reader COMMENTS
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(69)
thediplomat
Apr 29, 2009 at 10:21 a.m.
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I think Monday's GM news makes this story even more a fairy tale. Anyone else still think this going to happen? If so, you should really start taking medication for those hallucinations. Time to move or go back to school so you can find a new job. Don't mope around, it doesn't do the community or the economy any good.

creatureinthefreezer
Apr 27, 2009 at 8:29 a.m.
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The hits keep coming. Today GM is asking the Government to take common stock shares equal to half the amount of money they've received in the various bailout/loans. We better Hope this doesn't happen because when GM goes chapter 11 the common stock is wiped out and the share holder gets nothing, zero, zip. Let this pig fail now and sell off the company assets get our money back and be done with it.

creatureinthefreezer
Apr 24, 2009 at 1:30 p.m.
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Who needs Hope when the U.S. Government keeps loaning money to GM. Another 2 Billion today according to a report. The same report said GM is burning 2 - 2.6 Billion a month just to stay afloat. There is no end in sight for the tax payer. If GM is burning that much money every month they need to file chapter 11 and start from scratch. What a joke people. Just another money pit like Iraq.

klick
Apr 23, 2009 at 9:59 p.m.
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Ok SuperDave this ones fine .

pharm
Apr 23, 2009 at 2:55 p.m.
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frelnc, 80 to 100 miles if you didn`t use the lights, radio, wipers, electric brake assist, any one of those sent the mileage plummeting. The batteries were an electrical danger to those(drivers, passengers)who were not certified to work on them. They also had a tendency to explode. The cost of the vehicle made it impossible to market at the listed price($34,000), GM would have lost their shirt on every one. GM should have gone forward with more development and testing, but the EV-1 was not the savior people think it was. One electrical death and Ralph Nader rides out of sun to chastise GM again.

SuperDave
Apr 23, 2009 at 2:25 p.m.
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klick: It just makes me hungry.

Shopierehuh
Apr 23, 2009 at 12:18 p.m.
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Yaaaaawwwwnnnnn.

frelnc
Apr 23, 2009 at 11:59 a.m.
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Title's a little misleading. Doesn't sound like there's much hope at all.

If GM had given Janesville the EV1 instead of the Hummer there might have been hope for this plant and for GM overall.

We need to accept the reality here. Even in the middle of the worst downturn in the history of American automotive manufacturing GM still doesn't get it. Sure, they've come up with some "green" vehicles, but they're an obvious ploy to bring consumers back into the fold.

GM has long since lost touch with the American consumer. During the Clinton administration California's Air Resources Board (CARB)passed the ZEV amendment in 1990 GM came up with the EV1. GM designed and test marketed (all by lease) this perfect eco-friendly vehicle - an all-electric car that was attractive, traveled at highway speeds with ease and went 80 to 100 miles on a charge. CARB enthusiastically supported the EV1. It is important to note that Dick Cheney, Condaleeza Rice and Andrew Card all served on the boards of oil companies and automobile manufacturers at that time. Soon BIG OIL and BIG CAR brought lawsuits against CARB. CARB caved and as sure as God made little green apple, GM discontinued the EV1.

In point of fact, GM crushed the EV1 in favor of the Hummer. There is no pun at all here - they literally crushed the entire fleet of EV1s except for a few saved for museums so that no energetic entrepreneur could reverse engineer them.

Without a significant shift if their approach to satisfying consumer need and substantive change to the product lines American automobile manufacturers are sunk. Making high-priced muscle car hybrids or huge trucks run on hydrogen cells or ethanol doesn't make them any more affordable or truly "green". We should be able to expect real environmental responsibility from automobile manufacturers - coupled with affordability. The EV1 had it all and GM chose big oil over environmental responsibility.

It's a fact of life. What goes around .....

klick
Apr 23, 2009 at 11:09 a.m.
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SupperDave whats wrong with the way i spell your name SupperDave .

thediplomat
Apr 23, 2009 at 9:23 a.m.
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Oh give it a rest! GM plans on permanently closing more plants before August and these plants are a lot newer than the plant in Janesville. Quit stringing people along. It would be nice if some responsible journalism were taking place right now.

prounion
Apr 23, 2009 at 9:13 a.m.
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Of course GM will be back. They would be eager to get all the experienced UAW workers back. I mean think of all the money they would save by not having to teach them all the complicated work rules that had evolved over the years. They could really hit the ground running.

Shopierehuh
Apr 23, 2009 at 9:11 a.m.
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"Is GM really not coming back to Janesville? Does this mean that my neighbor has to sell his 2 SUVs, his boat, his motorcycle, his 2 ATVs, 3 jet ski's and his summer cottage near Spooner?"

Probably not, Joker. But there is a distinct possibility that he might have to send his remaining children to a measly State College instead of a private school.

SuperDave
Apr 23, 2009 at 8:11 a.m.
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prevention: I said "no offense". No, none of us is perfect. klick can't even spell "SuperDave" LOL!

smartypnts50
Apr 23, 2009 at 4:25 a.m.
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When GM comes back to Janesville, will Dana Corp come back to Edgerton? It could happen.

luluberry_0981
Apr 23, 2009 at 3:20 a.m.
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Excuse me... I think I just peed myself laughing...

miyata312
Apr 23, 2009 at 1:45 a.m.
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"For me the Hope that GM comes back to Janesville is like Doyle hoping his hair will grow back"

Thanks creature. Now I have to wipe orange juice off my screen. :haha

melstew47
Apr 23, 2009 at 1:24 a.m.
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i agree with chainsawchuckle, let this dead horse die,and hurry up about it.

klick
Apr 22, 2009 at 11:58 p.m.
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SupperDave see your not as good as you think you are ''''' got caught didn't ya . is this what you do with your 10 minutes a day? working hard huh .

prevention
Apr 22, 2009 at 11:40 p.m.
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Thanks, SuperDave! By the looks of your 'screen name' that you are hiding behind, I am glad to know that there are perfect people out there besides the the spelling police.

Are you looking to start trouble? Go bark up a different tree. The point is, GM is gone and people need to realize that IT WILL NOT BE THE SAME JANESVILLE AS IT WAS FIVE MONTHS AGO!

GM, GM, GM! Screw GM and move on with your lives! GO FORD!

TheJoker
Apr 22, 2009 at 10:55 p.m.
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Is GM really not coming back to Janesville? Does this mean that my neighbor has to sell his 2 SUVs, his boat, his motorcycle, his 2 ATVs, 3 jet ski's and his summer cottage near Spooner?

Seabee
Apr 22, 2009 at 10:14 p.m.
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Turn the building into a heroin addict rehab clinic, and electrify the fences!

wahoo_35
Apr 22, 2009 at 8:22 p.m.
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If that is the case, the city should take the money that was going to blown on the ice rink and tunnel, go to the auction and buy the plant to show how much GM is wanted here or maybe if each one of us went and bought just one item we could save the plant. Whose with me??

klick
Apr 22, 2009 at 7:13 p.m.
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SarahB1
Apr 22, 2009 at 4:34 p.m.
Suggest removal Chevy-chevy bang-bang!
***************************************************That was funny good to see your cents of humor.

ndburdick
Apr 22, 2009 at 6:46 p.m.
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GM is not coming back to Janesville. Why would they do that when they can keep their plants in places like Missouri and Texas and pay much less in taxes and wages.

SuperDave
Apr 22, 2009 at 6:30 p.m.
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prevention: "loose hope"?!?!? PLEASE read my 12:12pm post. No offense, but you sound really ignorant when you use the wrong word.

creatureinthefreezer
Apr 22, 2009 at 6:27 p.m.
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hannah if that is true according to a recent article they're not suppose to take anything out since it's collateral.

chainsawchuckie
Apr 22, 2009 at 6:26 p.m.
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When will this dead horse die??

EMMO46
Apr 22, 2009 at 5:41 p.m.
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"Hope" has left the building.

thekid3477
Apr 22, 2009 at 5:21 p.m.
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sry i keep chuckling at the headline of this. who writes these?? the joker just to torment?? lol

creatureinthefreezer
Apr 22, 2009 at 4:39 p.m.
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Breaking news!! Under the multiple vehicle scenario along with the Pegasus model GM plans to build the "Cheddertreader". It’s a must for every Green bay packer fan. Fully loaded and bloated inside and out with an assortment of tailgating gems. City MPG 5 and Highway 8. Place your orders today.

fastlap36
Apr 22, 2009 at 4:31 p.m.
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top ten reasons why general motors
should stay in Janesville:
#1 Great union,management relations
#2 Hard working, Quality people
#3 Multipal vehicles can be produced on one
single line.
#4 The state of Wisconsin offered general
motors millions to stay.
#5 New landmark contract saves General Motors
millions in yearly operations cost.
#6 Janesville is near the midwest supply line.
#7 General Motors can tap into the $50 billion
dollars of federal money to upgrade the
plant.
#8 General Motors owns the plant free and clear
#9 Indoor rail system,within one mile to a
large airport and easy access to highway
#10 Finally all the complainers can finally
work for $14.00 per hour with 1/2 benefits
and no pensions.

garyprimer
Apr 22, 2009 at 3:34 p.m.
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Reliable sources report that plans are being made to produce the new Chevrolet Pegasus flying car at the the Janesville plant.

prevention
Apr 22, 2009 at 3:32 p.m.
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It's okay to loose hope on one thing for something better.... Here, we must loose hope of GM to a better opportunity for each individual. Whatever is best for each person directly effected will have an effect on the rest of us. It will take time, but what doesn't take time....

Take up a new hobby, go back to school, learn a new trade.... that is the better hope!

lovetoscrap
Apr 22, 2009 at 3:03 p.m.
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Well, it sure wasn't clean!

matthew516
Apr 22, 2009 at 2:38 p.m.
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Who is this "HOPE" person? Why don't they kick her out of the building and put the dang lock on it and get it over with? What's done is done, people will move on. It's just a building now.

janesvillecomments
Apr 22, 2009 at 2:13 p.m.
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The Gazette has run several informative stories on heroin abuse in the city of Janesville. It's obvious from this story they should branch out and cover the abuse of crack cocaine, as that is what people must be smoking who still think that GM might revive a 100+ year old plant, "modernized 34 years ago", given their economic struggles and possible bankruptcy.

Unidentified
Apr 22, 2009 at 2:03 p.m.
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This article strikes me as funny. First off GM is about two gulps of water away from drowning. Bankruptcy is likely. They are cutting another 1600 jobs as of a few days ago. Capacity keeps shrinking. Is is possible? Sure, but even if GM decides to put new product in this plant, it would be many years from now. Either way, we need solutions for the next five years. Nobody is going to hang around and wait for the GM fairy to hire them again. Moreover, even if GM does hire again, the jobs will pay 14 bucks. Not that myself and others wouldn't jump on that wage, but the point is that it's not going to be the same standard of living. Again, either way alternatives need to be sought after. I'm tired of the politics that are going into this plant. I liked it better when Rick Wagonor made their plans with Janesville clear before leaving. The politicians keep playing the hope card.

ca2642
Apr 22, 2009 at 1:21 p.m.
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Yeah right. The first step in the grieving process is denial.

SuperDave
Apr 22, 2009 at 1:11 p.m.
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cardtrader: Gotcha! :O)

cardtrader
Apr 22, 2009 at 12:47 p.m.
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Hey SuperDave you (could) hang loose. Let's get it right.

Zoom
Apr 22, 2009 at 12:44 p.m.
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The "coalition" is comparing GM to BMW?

Boo to the Gazette for the headline. The last sentance of the article completely contradicts it.

greengina8
Apr 22, 2009 at 12:43 p.m.
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go creature!

creatureinthefreezer
Apr 22, 2009 at 12:36 p.m.
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If you want dirty try a foundry or steel mill. Back on the hope topic. I hope that Janesville and the U.S. Government don't get sucked into anymore wasteful spending such as GM period. Saving GM, Saving the local plant etc. All this spending is taking away any hope for a reasonable tax burden we'll have. No one seems to understand or care that tax rates for us all will double maybe even triple inside of 10 years. So hope these half cooked ideas about saving something migrate into saving what little money you might have after payroll taxes, property taxes, gas taxes, new taxes yet to be unveiled. Let the ax fall where it may. Let bad decisions of the past fall on those who made them. Learn from History, Make a plan of action for yourself, Don’t wait for your someone else to bail you out. Lecture over.

partarican1
Apr 22, 2009 at 12:30 p.m.
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They would be in business if they would not have scrapped the electric car back in the day. Sell a product that the future demands! Create a product we can't live without and you're in business! Gas guzzlers are no longer the status quo.

truth1
Apr 22, 2009 at 12:20 p.m.
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How was GM a "dirty" factory??
I've been in many factories and that one did not fall into the "dirty" category.

SuperDave
Apr 22, 2009 at 12:12 p.m.
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Warning - spelling police here! This is so common I had to comment. LOSE vs. LOOSE.
LOSE is a verb, it rhymes with booze. You LOSE your car keys, LOSE a baseball game, LOSE hope. If you LOSE often enough, someone might think you're a LOSER. The past tense is LOST.
LOOSE is an adjective, it rhymes with juice. You could have LOOSE dentures, you cound hang LOOSE, or be a LOOSE woman. The comparative is LOOSER, as in these pants are LOOSER than those.
Just thought you'd like to know :O)

Warcraft
Apr 22, 2009 at 11:57 a.m.
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This ends this months episode of Hope remains for GM plant.
Please tune for next months Hope remains for GM plant episode,this time with all new quotes from
Doyle and company saying the same thing they
said the last two episodes just in case you missed it.

lovetoscrap
Apr 22, 2009 at 11:44 a.m.
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The key is to place our hope in something worth hoping for. GM is more of a false hope than anything. I believe our dreams and hopes lie in an area of interest since childhood. Something we have always dreamed of doing. GM was more a comfort than a dream. I don't think any of us "dreamed" of working in a dirty factory for comfortable wages.

TheJoker
Apr 22, 2009 at 10:55 a.m.
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I told you the door was open for GM to come back. Now the former GM workers won't have to sell their boats, RV's, motorcycles and other toys. You GM bashers need to get a life. I am glad that GM is coming back!

Wink, wink!

creatureinthefreezer
Apr 22, 2009 at 10:50 a.m.
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For me the Hope that GM comes back to Janesville is like Doyle hoping his hair will grow back. Not a reality. As stated by reports the plant is listed as collateral. My guess is GM wouldn't mind if the plant is taken from their control due to the amount of money it will take to clean up the site. Times have changed in America. People are not buying cars like they use to. Mindsets are different at least for the next 3-5 years or longer if you listen to so called experts regarding the economy/jobs and the future of manufacturing in America. Holding out for the return is a dream but the sooner we all accept reality the better. Doyle is saying and doing what he needs to now so that when election time comes he can say I tried every avenue. If I was one of the few GMer's left waiting for the return. Take that job somewhere else before there is no job left to take.

Long_Time_Gone
Apr 22, 2009 at 10:40 a.m.
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I hate to keep hoping, but I respect the effort - I am told Mr. Beckord has a substantial salary with country club benefits. He'll earn every bit of it if he can work some magic for my ole hometown.

woodsman
Apr 22, 2009 at 10:31 a.m.
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Such negativity;Hope your whole lives expectations aren't all this negative! Such a struggle your lives must be,to just throw in the towel and give up! Sorry but i disagree,she's clearing her throat,but "NOT" a peep yet.

davrille
Apr 22, 2009 at 10:15 a.m.
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The fat lady sang in 1982 when the government gave them (the big 3) money to update US auto-making facilities... whoops - forgot to use it that way. A second fat lady sang last year - the sooner we all realize the end and start picking up the pieces FOR OURSELVES and stop hoping for the "easy" button - the better.

thekid3477
Apr 22, 2009 at 10:11 a.m.
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but when its lost its ok to lose hope

woodsman
Apr 22, 2009 at 9:58 a.m.
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When you loose hope,all is lost! Dreams are just what they are,without them,we cease to exist.I want & we need this kind of an employer in this town,just think of all the jobs that go along with it.The impact is far beyond belief,rich,poor,middle class,all walks of life benefit. As i always say,the fat lady "IS" on stag,but hasn't started singing yet,this "IS" a goooooood thing!!!!!!!!!

cjjs35
Apr 22, 2009 at 9:39 a.m.
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GM has put this building up as collateral against the bailout money that they received from the government. And that ties Janesville’s hands on trying to gain control of this building for other revenue options. Holding out hope for a new product in this plant is a lot like holding a lit firecracker eventually it will go off and you will get burned.

cardtrader
Apr 22, 2009 at 9:33 a.m.
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GONE!!!!!!!!!!!!!!!!

lovetoscrap
Apr 22, 2009 at 9:26 a.m.
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Ummm...this is desparation at it's best! GM is gone. Most of our families have been impacted in one way or another and we are learning to deal with it and make changes. Those who are holding out for GM to make their re-appearance need to come to terms with reality and start figuring out how to live in these uncertain economic times.

prevention
Apr 22, 2009 at 9:21 a.m.
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The likelihood of GM coming back to Jville? Slim. They have already said that. And just looking at the facility, it appears there needs updating. What automaker is going to have that kind of money to purchase it AND invest in all the updates and 'making it pretty?'

Move on, Jville.

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