Reopening GM plant still a longshot
Podcast Episode
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.
Photo
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.
JANESVILLE 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.

Sep 25, 2011 at 11:10 p.m.
Suggest removal
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. ;-)
Sep 25, 2011 at 6:53 p.m.
Suggest removal
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.
Sep 25, 2011 at 5:07 p.m.
Suggest removal
GM has about the same chance of reopening in Janesville as a Solyndra plant.
Feb 25, 2010 at 11:50 a.m.
Suggest removal
http://www.freep.com/article/20100225/BU...
Feb 20, 2010 at 11:11 a.m.
Suggest removal
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
Feb 18, 2010 at 6:07 p.m.
Suggest removal
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.
Feb 18, 2010 at 4:55 p.m.
Suggest removal
Hang in there bobb1951 - hiring will start a few months after the 'official' announcement to re-open the Janeville plant.
Feb 18, 2010 at 1:32 p.m.
Suggest removal
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.
Feb 18, 2010 at 11:41 a.m.
Suggest removal
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
Feb 18, 2010 at 10:51 a.m.
Suggest removal
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
Feb 17, 2010 at 10:35 p.m.
Suggest removal
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...........
Feb 17, 2010 at 10:17 p.m.
Suggest removal
Hay lets all go and get drunk and go work on the line and have the union save our jobs.
Feb 17, 2010 at 7:44 p.m.
Suggest removal
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.
Feb 17, 2010 at 7:23 p.m.
Suggest removal
We're back in the saddle again! Yahooooooooooooo ooooooo!!
Feb 17, 2010 at 6:51 p.m.
Suggest removal
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?
Feb 17, 2010 at 6:46 p.m.
Suggest removal
They closed the Janesville plant?
Feb 17, 2010 at 4:41 p.m.
Suggest removal
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
Feb 17, 2010 at 4:24 p.m.
Suggest removal
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.
Feb 17, 2010 at 4:04 p.m.
Suggest removal
It will take a while for our community to get back to normal after GM returns.
Feb 17, 2010 at 3:59 p.m.
Suggest removal
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.
Feb 17, 2010 at 3:52 p.m.
Suggest removal
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.
Feb 17, 2010 at 3:47 p.m.
Feb 17, 2010 at 2:32 p.m.
Suggest removal
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.
Feb 17, 2010 at 2:27 p.m.
Suggest removal
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.
Feb 17, 2010 at 1:32 p.m.
Suggest removal
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".
Feb 17, 2010 at 12:57 p.m.
Suggest removal
All country's hate us,but yet we give them our money!
Feb 17, 2010 at 12:05 p.m.
Suggest removal
All Americans should be for the home team, sadly some are not.
Feb 17, 2010 at 11:10 a.m.
Suggest removal
Burn to the ground HMMMM With you in it??? Take care of two at once, FOOL!
Feb 17, 2010 at 11:08 a.m.
Feb 17, 2010 at 10:59 a.m.
Feb 17, 2010 at 10:41 a.m.
Suggest removal
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.
Feb 17, 2010 at 10 a.m.
Suggest removal
Does this mean GM is not coming back to Janesville?
Feb 17, 2010 at 9:59 a.m.
Suggest removal
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.
Feb 17, 2010 at 9:33 a.m.
Suggest removal
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.
Feb 17, 2010 at 8:59 a.m.
Suggest removal
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.
Feb 17, 2010 at 8:24 a.m.
Suggest removal
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!!
Feb 17, 2010 at 7:51 a.m.
Suggest removal
BillyDurant >do any of us really own our names LOL
Feb 17, 2010 at 7:38 a.m.
Suggest removal
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 .
Feb 17, 2010 at 7:22 a.m.
Suggest removal
Let it go already; union leaders have moved on; why don't the rest of you.
Feb 17, 2010 at 4:59 a.m.
Suggest removal
Hate to state the obvious but come on
Feb 17, 2010 at 4:58 a.m.
Suggest removal
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 $$$$ else where!
Feb 17, 2010 at 3 a.m.
Suggest removal
What I read on another link was that they want a "labor intensive" re-tooling. Meaning no real re-tooling costs other than more labor. This plant, while a long shot, is the cheapest for GM to run. It's totally owned and all they have to pay is labor and the power/water and other assorted bills. That's one of the reasons GM liked this plant, it was the cheapest to run with the biggest profit margin.
Feb 17, 2010 at 12:34 a.m.
Suggest removal
Ugh! Get over it Jville... No more GM!
Feb 16, 2010 at 10:52 p.m.
Suggest removal
Elmo: Why do you say I'm a basher? Nothing I said was bashing GM. Agreeing with Brainstorm is just coming to terms with reality. There is a very slim chance that GM will bring anything back to Janesville, it is still a struggling company. I hired-in in May of 2000, worked my a$$ 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! :-)
Feb 16, 2010 at 10:39 p.m.
Suggest removal
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.
Feb 16, 2010 at 9:32 p.m.
Suggest removal
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.
Feb 16, 2010 at 9:18 p.m.
Suggest removal
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?
Feb 16, 2010 at 9:01 p.m.
Suggest removal
copo9561 - nice name! do you own one?
Feb 16, 2010 at 8:56 p.m.
Suggest removal
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.
Feb 16, 2010 at 8:44 p.m.
Suggest removal
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!!
Feb 16, 2010 at 8:23 p.m.
Suggest removal
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.
Feb 16, 2010 at 8:17 p.m.
Suggest removal
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.
Feb 16, 2010 at 7:55 p.m.
Suggest removal
Maybe Sheridan could start dating Reuss to help win favor to re-open the plant.
Feb 16, 2010 at 7:50 p.m.
Suggest removal
It is a lonnnnnnnnnnnnnnnnnnnng shot that's for sure!!!
Feb 16, 2010 at 7:32 p.m.
Suggest removal
Overtime on Sat. starts 3/20 in Kc so the LaCrosse & Malibu are going to start catching up!
Feb 16, 2010 at 7:26 p.m.
Suggest removal
The harsh reality is that people need to move on and not count on it!
Feb 16, 2010 at 7:07 p.m.
Suggest removal
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!
Feb 16, 2010 at 6:57 p.m.
Suggest removal
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.
Feb 16, 2010 at 6:46 p.m.
Suggest removal
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!
Feb 16, 2010 at 6:29 p.m.
Suggest removal
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
Feb 16, 2010 at 6:15 p.m.
Suggest removal
Feb 16, 2010 at 6:09 p.m.
Suggest removal
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!!
Feb 16, 2010 at 6:06 p.m.
Suggest removal
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!
Feb 16, 2010 at 5:32 p.m.
Suggest removal
when your little city dries up, and your unemployment has ran out that 32 hours @ ten dollars a hour could just feed your family.
Feb 16, 2010 at 5:10 p.m.
Suggest removal
"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.
Before you post a comment, consider this:
Note: GazetteXtra.com does not condone or review every comment. Read more in our User Policy AgreementPost Comment
Commenting requires registration.