Reopening GM plant still a longshot

By JIM LEUTE ( Contact )   Tuesday, Feb. 16, 2010
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A GM official is again mentioning the possibility of reopening of its shuttered plants, like the plant in Janesville. Kyle Geissler reports. You can read more in Tuesday's Janesville Gazette.

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With the last Tahoe already moved off, the final assembly area in the Janesville GM plant sits idle.

With the last Tahoe already moved off, the final assembly area in the Janesville GM plant sits idle.

INCENTIVES PACKAGE


When the Janesville GM plant was in the running for future small-car production, state and local interests put together a $195 million incentive package:

Janesville: $15 million in cash plus an offer to run GM’s wastewater facility, a value of up to $1 million a year.

Beloit: $2 million

Rock County: $20 million

Private parties: $42 million from economic development entities, health care systems and utilities.

State: $115 million, mostly in tax credits and energy efficiency grants.

— Despite recent comments by GM North American President Mark Reuss, industry observers say talk of reopening a plant in Janesville or Spring Hill, Tenn., is wildly premature.

Demand is nowhere near the level needed to support the massive capital investment necessary to bring Janesville or Spring Hill back on line, observers said.

Reuss in January said the automaker was looking at reopening shuttered assembly lines at Spring Hill or Janesville to resolve a short supply of hot-selling vehicles.

On Saturday, he told reporters in Florida the company is still considering its options.

Industry observers said Reuss’ comments could be management positioning of itself for upcoming contract talks. Or the comments could be a subtle message to consumers that GM is on an upswing while competitors Toyota and Honda struggle with massive recalls, they said.

Reuss said Saturday the automaker will discuss incentives with state and local governments as it decides whether to reopen a closed U.S. plant.

If that sounds familiar, it should.

The Janesville GM plant effectively closed in December 2008 when it ended production of full-size sport utility vehicles. Several months later, it found itself in a three-plant race for production of a new small vehicle.

That incentive-laden race ended in June, when GM awarded the new line of small cars to a plant in Orion, Mich.

Michigan interests reportedly wooed GM with a package worth $779 million.

A $195 million offering from Wisconsin and a Tennessee package that included $20 million in training and education money plus long-term tax breaks fell short.

That put the GM plants in Janesville and Spring Hill into what GM referred to as “standby” mode. The two plants are at the top of the list should GM ever need assembly capacity.

The Janesville and Spring Hill plants do not belong to “Liquidation Motors, Inc.,” the chunk of the old GM that’s being sold. Instead, the two plants are part of the new GM and are eligible for future production.

GM is in short supply of some of its best-selling vehicles, including the Chevrolet Equinox, Buick LaCrosse, Cadillac SRX as well as full-size pickup trucks and sports utility vehicles such as the Chevy Tahoe that was built in Janesville before production transferred to Arlington, Texas.

Reuss said Saturday it’s possible that demand could be met with added shifts and overtime, but he indicated the company is leaning toward reopening a plant that was closed as GM went though bankruptcy last year.

He said if a shuttered U.S. plant reopens, it would operate in a more flexible, innovative way.

“I’m not ready to say which plants because we’re still looking at which ones and how to do it, and that would be a conversation that would not just be internal to GM but also (with) some of the states where those plants are,” Reuss said. “What we want to do is something that may not be traditional in terms of how we do it and how we staff it and how we bring it on and off.”

While Reuss declined to give specifics, the Detroit Free Press previously reported that GM is looking to open a manual body shop in unused factory space to give the company extra production capacity without the time and expense it would take to tool a fully automated line.

“Comments such as these can’t be dismissed out of hand,” said John Beckord, president of Forward Janesville. “It’s not absolutely impossible that GM could reopen the Janesville plant, and there is a scenario out there where it could play out.

“But that’s a long ways out there, and people need to be real in their understanding of that.”

From what Beckord has learned, that scenario would include a U.S. auto industry that’s selling 12.5 million to 14 million vehicles a year. The industry now is selling about 10.7 million on an annualized basis.

“In order to add more plants, GM’s share of that and product mix would have to be absolutely right on,” he said. “That’s a tall order.”

GM has fewer than 400 workers laid off from its Janesville plant, which has been extensively stripped. Hundreds of other workers have taken early retirements or buyouts or transferred to other GM facilities.

Brad Dutcher, former president of United Auto Workers Local 95 and now a regional UAW servicing representative, said workers in Janesville shouldn’t get their hopes up that the plant will reopen any time soon.

“We’ve told our membership to take advantage of any transfer opportunities that come up,” Dutcher said.

Other Local 95 officials have agreed and said Reuss’ comments could create false hope in the community.

reader COMMENTS
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(83)
garyprimer
Sep 25, 2011 at 11:10 p.m.
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I wasn't aware that there was a Solyndra plant in Janesville.
However, it does appear that Obama was the kiss of death when he came to visit the Janesville plant.
Trying to put a smile on your face, wislady. ;-)

Dawolfman75
Sep 25, 2011 at 6:53 p.m.
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if you worked for GM you would know what the actual chances of either of the plants re opening are. capacity is at 12.5 mill vehicles and they need a plant to help with more needed hot models. that on top of at least 4 new products coming out within the next couple years. according to our contract, spring hill will be reopening to help with capacity. were will the 4 new models coming out go? they only have one plant left. when janesville does open up, gonna love using the line "looks like hell froze over" to the naysayers.

wislady
Sep 25, 2011 at 5:07 p.m.
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GM has about the same chance of reopening in Janesville as a Solyndra plant.

vatoloco
Feb 22, 2010 at 10:42 a.m.
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http://news.yahoo.com/s/ap/20100222/ap_o...

Here is an article about a GM worker who commutes 1,000 miles to work posted on the Yahoo frontpage.

melstew47
Feb 20, 2010 at 11:11 a.m.
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jterry,out of all the post ive read on here,youve got to be the biggest idiot that has posted,you hate us all,you hate the town,what is wrong with you?where do you live?by the way youre talking it must be the bowels of hell.(lol)youre in need of help you should get it,an by the way you cant be to smart either,go back an read some of your post,looks like you cant spell either.lol

GoPackers
Feb 18, 2010 at 6:07 p.m.
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Jterry: Again, if you hate this town so much why do you read the gazette or even care what goes on here?? I know when I don't like things I don't go out of my way to read about them or even comment on them. I have better things to do with my time. Like doing things I enjoy, not hate.

JustAskMe
Feb 18, 2010 at 4:55 p.m.
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Hang in there bobb1951 - hiring will start a few months after the 'official' announcement to re-open the Janeville plant.

snarly
Feb 18, 2010 at 1:32 p.m.
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I just left a bar in janesville,had a good lunch and all i could her from a drunk FORMER GM worker was he heard GM will open and he will be a high senority worker because he did not take the money,This is the same GM worker I have seen crying about not getting his 28 Pluse an hour job that he could not find in the real world. I told him to wake up the gravy train was over and to get on with his life.O and he stated the UAW was going to get all the jobs back I started to LOL.

jterry1955
Feb 18, 2010 at 11:41 a.m.
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in response to frusions question. I just hate Janesville and all of the people who live in Janesville, In my opinion there is not one good thing about your town or all of the sef rightious people who live in it, I mean look how they just stole all the grat farm land out on the east side and you people are not done yet

jterry1955
Feb 18, 2010 at 10:51 a.m.
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I keep wondering why the site staff feels that in their infinate wisdom that they have to remove my comments. I stay within thier little guidelines, I have not said anything libelous against anyone or anything, all I have said is what I feel about the issues. But I guess the little girls who are on the site staff think that I am the boogy monster and I will give people nightmares, please enlighten me all of you censors on the site staff

averagegal
Feb 17, 2010 at 10:35 p.m.
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RE: truelove...Many retirees still get a check evey week, ever think of that? what is wrong with this community of mine, (for a good fifty years) that everybody seems to be so hatefull tword hardwoking people. I worked there for ten years, but also worked many jobs in our fair city. Nobody ever hated me for working elsewhere. why dont we all become a community again, it is too late for all this useless hate...........

snarly
Feb 17, 2010 at 10:17 p.m.
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Hay lets all go and get drunk and go work on the line and have the union save our jobs.

truelove
Feb 17, 2010 at 7:44 p.m.
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That would be wonderful if GM did open the doors up again. Maybe then we would stop hearing without GM this town is nothing! Seems to me that this town is doing better than expected after GM closed it's doors.

Unidentified
Feb 17, 2010 at 7:23 p.m.
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We're back in the saddle again! Yahooooooooooooo ooooooo!!

frusion
Feb 17, 2010 at 6:51 p.m.
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jterry1955 are you ok? I think you are going to blow a vessel. Why do you hate GM workers so much? They are no different than anyone else. You're a farmer right? Do you also hate farmers that worked at GM?

garyprimer
Feb 17, 2010 at 6:46 p.m.
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They closed the Janesville plant?

jterry1955
Feb 17, 2010 at 4:41 p.m.
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well golly gee, I think I will make nice with the Janesburg gazette, and say all kind of nice and cheery things, it seems that the Gazette does not believe in freedom of expression unless they them selves are doing it. so I am happy, happy, joy, joy, because those poor overpaid, and under worked GM employees may have a job again, Just remember to say anything on here you have to be HAPPY, HAPPY, JOY, JOY

SwissChick
Feb 17, 2010 at 4:24 p.m.
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The only way I know that is that I've know many GM workers over the past 15 years or so and they've all said the same thing to me.

JustAskMe
Feb 17, 2010 at 4:04 p.m.
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It will take a while for our community to get back to normal after GM returns.

GoPackers
Feb 17, 2010 at 3:59 p.m.
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YIKES jterry!! Sounds like you have some issues and could really use a psychological evaluation. Glad you are not from Janesville, I would not want you to be living anywhere near me or my children. You sound like one of those people that will have a break down and start shooting up the place or make your own home-made bomb. If Gm and Janesville make you so upset, you really shouldn't read the articles. You should find a better way to deal with your anger, instead hoping an entire city burns to the ground.

SwissChick
Feb 17, 2010 at 3:52 p.m.
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MadeinUSA - Gee, I take offense to that comment as I don't "live in bars". Idiot. I was stating a fact regarding the referrals, and secondly, the GM bashers wouldn't work there anyway. Think before you speak/type.

jterry1955
Feb 17, 2010 at 3:47 p.m.
(This comment was removed by the site staff.)
RichE95
Feb 17, 2010 at 2:32 p.m.
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If Toyota had been exposed for what it is three years ago, we might still have a plant here. Alas, that is just another could have been. Also, I'm not sure the liberal American product bashers (aka Mike Sheridan's Madison friends) would ever buy GM.

RUSerious
Feb 17, 2010 at 2:27 p.m.
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You did not have to give/receive a referral from a family member or even someone you knew. Like kind of a way to keep the application process from getting out of hand-like 50,000 applications for 200 jobs?
But the suggestion "the bashers would be the first ones in line to fill out an application" is not necessarily wrong-who knows how applications could be made or handled in the event of a reopening? Obviously not in the "each one gets one" way as in the past, especially in these new/different cicumstances.

SwissChick
Feb 17, 2010 at 1:32 p.m.
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skeeterxs170 - RE: Feb 16, 2010 at 7:07 p.m.
"Where are the Gm bashers? I know these articles are like beating a dead horse in Janesville, but if (big if) the plant were to reopen, the bashers would be the first ones in line to fill out an application...."
.
As I've stated before (and GMer's have agreed with me), people outside of the GM personnel ranks are not given an opportunity to apply at GM. You have to have an aunt, uncle, brother, sister, mother, father, son, daughter, etc., etc., to be able to get an application from there. Very closed employment even though GM took $17,000,000 from the state a few years back for "training and updating".

woodsman
Feb 17, 2010 at 12:57 p.m.
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All country's hate us,but yet we give them our money!

MBHammer
Feb 17, 2010 at 12:05 p.m.
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All Americans should be for the home team, sadly some are not.

woodsman
Feb 17, 2010 at 11:10 a.m.
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Burn to the ground HMMMM With you in it??? Take care of two at once, FOOL!

woodsman
Feb 17, 2010 at 11:08 a.m.
(This comment was removed by the site staff.)
jterry1955
Feb 17, 2010 at 10:59 a.m.
(This comment was removed by the site staff.)
janesvillean
Feb 17, 2010 at 10:41 a.m.
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SarahB1, yes, GM pays property taxes here. Parcel:
http://www.ci.janesville.wi.us/Scripts2/...
.
Valued at $12 million and change, and based on the 2009 mill rate of 0.02605380, that's about $300,000 in annual property taxes. Note the quit claim deed in July to the "New GM". They still own it, and they are still paying property taxes on it.

TheJoker
Feb 17, 2010 at 10 a.m.
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Does this mean GM is not coming back to Janesville?

JustAskMe
Feb 17, 2010 at 9:59 a.m.
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Federal Job Stimulus money will cover the re-tooling costs - parts and labor - and Mike Sherridan can come back and lead the UAW when he's tossed out of piblic office.

Rocky
Feb 17, 2010 at 9:33 a.m.
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Did any of you ever have a boyfriend or girlfriend that broke up with you even though you "loved" them - and then kept dangling the thought of "getting back together". How'd that work out for you? Most of the time it never happened - or if it did it was just for the opportunity to 'get busy' (Avoiding the obvious words to keep it "family friendly") with you one more time - only to dump you again later? Yo-yo relationships. Exactly what GM is doing now. Time to cut our losses.

supermom
Feb 17, 2010 at 8:59 a.m.
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woodsman - do you have some obsession with the word "fool"? Really, it's getting old. I wouldn't call some of the comments on here negative, I'd call it moving on and not counting on false hope.

woodsman
Feb 17, 2010 at 8:24 a.m.
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Why don't you negative sub humans quit acting & talking like "FOOL'S" !!! Ask yourselves this question,was Janesburg better off with,or without G.M.(the whole town/county/state are losing millions without this plant)so just be a fool,fool!!

copo9561
Feb 17, 2010 at 7:51 a.m.
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BillyDurant >do any of us really own our names LOL

number2
Feb 17, 2010 at 7:38 a.m.
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Have any of you been to Detroit and seen the huge plants ( Ford GM chyrsler ) sitting empty with trees growing in the parking lots . If they are'nt going to open a huge plant in Detriot they sure as heck wont mess with janesville .

docwMB
Feb 17, 2010 at 7:22 a.m.
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Let it go already; union leaders have moved on; why don't the rest of you.

skeeterxs170
Feb 17, 2010 at 4:59 a.m.
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Hate to state the obvious but come on

skeeterxs170
Feb 17, 2010 at 4:58 a.m.
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No stamping plant???How can it be cheaper??? Gee the thought than Tn has capabilities, Jvl doesn't!!!! Put the price of placing a stamping plant in. Several MILLIONS! If I owned Gm (thank god I don't) I'd put $$$$ else where!

malky15
Feb 17, 2010 at 3 a.m.
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What I read on another link was that they want a "labor intensive" re-tooling. Meaning no real re-tooling costs other than more labor. This plant, while a long shot, is the cheapest for GM to run. It's totally owned and all they have to pay is labor and the power/water and other assorted bills. That's one of the reasons GM liked this plant, it was the cheapest to run with the biggest profit margin.

prevention
Feb 17, 2010 at 12:34 a.m.
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Ugh! Get over it Jville... No more GM!

GoPackers
Feb 16, 2010 at 10:52 p.m.
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Elmo: Why do you say I'm a basher? Nothing I said was bashing GM. Agreeing with Brainstorm is just coming to terms with reality. There is a very slim chance that GM will bring anything back to Janesville, it is still a struggling company. I hired-in in May of 2000, worked my a$$ off the entire time. My mom put in 30, my brother and brother in law (Ft. Wayne) work or worked for GM and my father worked for Lear. So I am far from a basher. My family has put blood, sweat, tears, and multiple surgeries into working for GM. I am proud to be a part of GM, I have lived for and by GM my entire life. But I'm smart enough to realize the end of the line just might be here. The days of Gm owning 50% or even 30% of car sales is long gone. At no fault of the assemblers. Like Brainstorm said the Gazette just needs a puff piece every 3 months to get the hopes up. No offense, but the good days of GM in Janesville are gone, if it comes back it will be a different company with very different wages and benefits. As the article implies: "Reuss said. “What we want to do is something that may not be traditional in terms of how we do it and how we staff it and how we bring it on and off.” To me that doesn't sound very promising. But if you want to wait around and hope for that, good luck to you! :-)

JustAskMe
Feb 16, 2010 at 10:39 p.m.
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I expect that the upcoming Obama Job Stimulus will cover the re-tooling of the GM plant, the constuction of a nuclear power plant in Georgia, and much much more.

mentor397
Feb 16, 2010 at 9:32 p.m.
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Look, it might be possible, but it would take a sustained economic rebound to bring any sort of realistic possibility of the Janesville plant coming back to life. Is it possible? Yeah. Is it likely? Maybe. Is it imminent? Heck no. They would have to think long and hard before they sink the millions of dollars back into the plant to make it operational.

elmorockbottom
Feb 16, 2010 at 9:18 p.m.
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I would love to see GM come back, but I am not banking on it. Even if GM were to come back, I may not, or maybe could not come back.If GM were to somehow regain more market share, I don't think putting some money back into the GM Janesville plant would even be an issue. GoPackers, a GM employee? You sound more like a GM basher. Agree with Brainstorm? Huh?

BillyDurant
Feb 16, 2010 at 9:01 p.m.
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copo9561 - nice name! do you own one?

GoPackers
Feb 16, 2010 at 8:56 p.m.
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Elmo: I too am a GM employee and come from a GM family, it doesn't change my opinion. I have moved on, I suggest you do the same, if you haven't already.
Kraut: The only reason Ford didn't need a hand out is because they put the entire company, even the logo, up for collateral to borrow money before the big credit crunch.
Brainstorm: I completely agree with you.

truth1
Feb 16, 2010 at 8:44 p.m.
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Someone said something about buying a Ford...I don't know if they're still doing it but for a few years they were making vehicles that had power to the brake fluid sensor that NEVER shut off, they were ACTUALLY designed that way and a number of them caught fire during the night INSIDE garages.Brake fluid is nice and flammable too...Real nice thing with an attached garage...NO Fords for me, NO WAY!!

brainstorm
Feb 16, 2010 at 8:23 p.m.
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Please give it up. GM is not coming back to Janesville. The plant is empty and would cost millions to retool and get operational. There are other plants that can handle the production just fine. It amazes me that this topic comes up every three months- different headline, same old (mis)information.

elmorockbottom
Feb 16, 2010 at 8:17 p.m.
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Hank, you really know what you are talking about? Issues with attendance, Monday night game, disability issues, etc.? GM liked Janesville.It was the economy, and possibly a more modern plant in Arlington that did us in.

wahoo_35
Feb 16, 2010 at 7:55 p.m.
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Maybe Sheridan could start dating Reuss to help win favor to re-open the plant.

whybesad
Feb 16, 2010 at 7:50 p.m.
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It is a lonnnnnnnnnnnnnnnnnnnng shot that's for sure!!!

skeeterxs170
Feb 16, 2010 at 7:32 p.m.
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Overtime on Sat. starts 3/20 in Kc so the LaCrosse & Malibu are going to start catching up!

AlleyCat
Feb 16, 2010 at 7:26 p.m.
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The harsh reality is that people need to move on and not count on it!

skeeterxs170
Feb 16, 2010 at 7:07 p.m.
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Where are the Gm bashers? I know these articles are like beating a dead horse in Janesville, but if (big if) the plant were to reopen, the bashers would be the first ones in line to fill out an application. Janesville does not have the capability to do stamping where other plants do! That makes a big diff.! Everyone that gets bent by the articles on Gm need to relax. Gm was a huge part of Janesville and will continue to be. Everyone must agree that when Gm was open life was better! Families were together, no one had to drive 8 hours every weekend to see spouses and children, and more money was being spent in Janesville!

elmorockbottom
Feb 16, 2010 at 6:57 p.m.
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GoPackers. Am a GM employee. While you are right in your observation that Spring Hill may have some distinct tooling advantages over Janesville, there is a lot more than just that to be negotiated.Right now, Tennessee seems to be concerned with other matters. Tennessee is bringing a new Volkswagen plant to Knoxville. One of Tennessee's biggest negotiators on this project is a Senator, who is widely hated by the UAW for failure to already have a GM product in Tennessee. His name is Bob Corker. Senator Bob is widely hated by virtually every Spring Hill employee for what they see as a GM fiasco.Politics, and many other factors as well. A future product in Janesville? I hope so. Still see it as a longshot, though.

kiowamohican
Feb 16, 2010 at 6:46 p.m.
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Now that it has been decided that Guantanamo Bay is going to be moved to IL, I don't see any real future for the Janesville GM plant. I did hear today that Obama is giving the go ahead to nuclear energy expansion. Maybe we can turn it into a big nuke plant!

GoPackers
Feb 16, 2010 at 6:29 p.m.
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Was it a slow news day or what?? This is just the same article worded a little different with some new numbers figured in. They will work overtime, Saturday and Sundays before they retool an old run down plant. They will go with Spring Hill before they go with Janesville. Its already set up to build multiple models. JMO

chainsawchuckie
Feb 16, 2010 at 6:15 p.m.
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woodsman
Feb 16, 2010 at 6:09 p.m.
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Most people would think they died and went to heaven to make that kind of money!! Let's see 0000000 dollars & hour,10 dollars & hour,I rest my case fool!!

nikkiz242001
Feb 16, 2010 at 6:06 p.m.
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i totally agree copo9561 u take what u can get beggers cannot be choosers i am in that situation now and i would bust my butt for $10 and no benefits! just to keep a roof over my head clothes on my childrens back and food on the table!you do what u have to do and take what u need to, to survive!

copo9561
Feb 16, 2010 at 5:32 p.m.
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when your little city dries up, and your unemployment has ran out that 32 hours @ ten dollars a hour could just feed your family.

Jvlhomeowner
Feb 16, 2010 at 5:10 p.m.
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"He said if a shuttered U.S. plant reopens, it would operate in a more flexible, innovative way."

Yea, 32 hours a week per employee, $10.00 an hour and no benefits.

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