GM workers in Tenn. want to go ’small’ again
By BILL POOVEY
Associated Press Writer
SPRING HILL, Tenn. (AP) — Two decades after General Motors Corp. launched Saturn as its import-fighting, small car division in Tennessee, GM has 2,500 workers at the Spring Hill assembly plant sweating, worried they might not get the call when the next experiment begins.
“We are the small-car plant,” said Cliff Goff, 53, a longtime employee at Spring Hill who has worked for GM since 1975. “We introduced ourselves to the world as the Saturn company that was going to build the small car in America and be competitive with the Japanese.”
GM is planning a new subcompact to compete with foreign models and has decided to build it in the U.S. instead of China. Workers at Spring Hill, where GM in 1990 started production of the Saturn brand, are on a short list along with Orion Township, Mich., and Janesville, Wis.
GM built the Spring Hill facility to make sure Saturn, at first its own division, wasn’t too heavily influenced by Detroit. They billed it as a “different kind of car company,” with a no-haggle sales technique and buyer loyalty gimmicks like the folksy homecoming picnics that drew owners to the Tennessee plant site.
The separation was short-lived, though, and GM soon absorbed leadership of Saturn back into its headquarters.
Just two years ago, after GM made a failed attempt to go upscale with bigger Saturns, the Spring Hill plant about 40 miles south of Nashville lost the brand. GM announced Friday that is selling the Saturn brand to auto racing titan Roger Penske’s Penske Automotive Group Inc., which plans to continue selling GM-made vehicles but eventually partner with foreign carmakers.
Since a $600 million overhaul of the Spring Hill plant, spurred partly by state tax credits, workers there have been building the eight-seat Chevrolet Traverse.
GM’s cost-cutting plan announced Monday as it filed for bankruptcy protection identifies Spring Hill and Orion as plants to be put on standby next fall, with Traverse production moving to Lansing, Mich.
Republican U.S. Sen. Lamar Alexander, who as governor brought the automotive industry to Tennessee and in the 1980s recruited GM to build the plant just down the road from Nissan’s U.S. base in Smyrna — said Spring Hill is an easier choice for GM now. Alexander said Tennessee is a right-to-work-law state, has a record of proven success with Saturn and Nissan and has Volkswagen building a plant in Chattanooga. He said Spring Hill has an experienced work force and is close to hundreds of auto suppliers.
“I would say the new GM has a secret weapon in Spring Hill,” Alexander said.
That’s one side of the competition.
Democratic U.S. Sen. Russ Feingold of Wisconsin issued a statement of support for the GM plant in his hometown of Janesville and “its strong and dedicated work force, which goes back generations.”
In Michigan, Megan Brown, a spokeswoman for Gov. Jennifer Granholm, said the governor has vowed to “be aggressive about keeping auto plants and jobs here in Michigan. We are in the hunt for this small car program” and doing everything possible to keep auto jobs in Michigan.
David Cole, chairman of the Center for Automotive Research in Ann Arbor, Mich., said Spring Hill is “probably in a pretty favorable position” among the three.
“It is a relatively new plant and it also is a plant that has had a history of good performance,” he said. Cole said he is “hard pressed to think of a reason why they wouldn’t” be picked.
Cole also said it is possible more than one of the three GM plants will get the call to make small cars if demand is strong.
He said GM is saying “these plants might have a future life just not right now. What they are essentially saying is those are viable plants. I think they fully expect that volume will come back and those plants will be used.”
“Over the next couple of years, I think we are looking at an industry that is going to be very profitable,” he said.
Tennessee’s chief business recruiter, Matt Kisber, said Spring Hill’s record of early success with Saturn is among its advantages as the plant competes to again build GM’s small car.
“I’d say in life some things come full circle, and this might be one of those things,” Kisber said.
Jun 8, 2009 at 2:22 p.m.
Suggest removal
"Note that the Vibe is a little larger and more expensive than the Aveo/G3" Really??? ;)
My point was that shoppers would tend to go into debt a little more to get the Vibe, so in that context they do compete in a close enough price range.
Jun 8, 2009 at 12:53 p.m.
Suggest removal
The public has spoken about what they like and don't like, and they haven't chosen the Aveo/G3. If GM can't compete with Kia's warranty, then they have to make up for that somewhere else, but they can't do it re-badging a Daewoo.
Note that the Vibe is a little larger and more expensive than the Aveo/G3, so I don't think they really compete with each other. The Vibe is also a good vehicle, especially on the used market (depreciation), but maybe that's because it shares so much with the Toyota Matrix.
Jun 8, 2009 at 9:52 a.m.
Suggest removal
Joker - Show me where I said "everything built in America was quality" , my post inferred that cars built by non-American companies are not always the quality mecca you and others seem to be obsessed with promoting. You need to quit drinking so much sake.
Zoom - While I would agree with the warranty, the other items are debatable. It's all what you like or don't like. I think the Aveo is better off than the re-badged G3. The sales may be slow because of the timing - bring out a new car when you are dumping the brand!!?? And selling it along side the Vibe, which is much better, does not help. But hey, isn't that what we are all supposed to build and drive now, small gas sippers?
Jun 7, 2009 at 10:24 p.m.
Suggest removal
Chad, quit drinking the GM and UAW Kool-Aid about how great GM cars are. Both GM and UAW failed you and many others. I suggest you wake up and realize that not everything built in America is of great quality.
Jun 7, 2009 at 9:37 p.m.
Suggest removal
The Aveo/G3 doesn't sell as well compared to the competition because it misses on all counts: warranty; featues; comfort; performance; style fit/finish, etc. Lets hope the new car, wherever it's built, can do better. After all, it's OUR car company now.
Jun 7, 2009 at 9:28 p.m.
Suggest removal
chad, the Aveo and G3 are the same car, made in Korea, by Deawoo. All small cars must meet the same crash standards. If a Kia is a pop-can-on-wheels, how is an Aveo/G3 not? You might want to check how well the G3 is selling (or not).
Jun 7, 2009 at 6:27 p.m.
Suggest removal
While Sen. Corker blasted GM every chance his little lying Republican lips could move, I bet you his lips are planted on GM's A$$ now to get that product. Another two faced politician, go figure.
Jun 7, 2009 at 6:21 p.m.
Suggest removal
Yeah, right Zoom! I've seen what a Kia pop-can-on-wheels does in an accident. The Aveo and G3 are better than those other small cars. Not saying I want one of those small uncomfortable cars, but people buy those other tin cans because they can get it CHEAP! You get what you pay for.
Jun 7, 2009 at 10:36 a.m.
Suggest removal
Oil is GUARANTEED to shoot through the roof once again. Why wouldn't small cars sell insanely if gas were 5 dollars a gallon with no sign of abating. Electric vehicles powered by nuclear power generation are modern societies only hope until we can efficiently harvest the 480 billion billion megawatt unlimited power supply in the sky.
http://en.wikipedia.org/wiki/Peak_oil
It is only feasible that as long as our economy stays on track people will be purchasing more small cars in the future so there is definitely hope for Janesville someday.
Jun 7, 2009 at 10:21 a.m.
Suggest removal
GM will never sell or lease this building. As I'm sure every one is aware that when a new business takes over a building, the state will insist that it be cleaned up before new business can take over. This would cost GM 10's of millions of dollars to do this. GM is in no position to spend that kind of dollars. They have to two alternatives, let it stand idle or put there own product back in. Chances of a new product is slim, so I believe it will just sit idle until a time when it can be tore down and the land cleaned up from toxic chemicals.
Jun 7, 2009 at 9:53 a.m.
Suggest removal
OMG! GM has a secret weapon! You know, any time soon might be a good time to bring it out and start using it. This is a great relief to me, as I was concerned that the company might be in financial trouble. Where do they find these guys?
Jun 6, 2009 at 10:58 p.m.
Suggest removal
"If Aveo's and G3's are not selling, why would this new car sell?"
Because Aveo's and G3's are crap compared to the competition.
Jun 6, 2009 at 10:29 p.m.
Suggest removal
Sorry that was directed at "ihavealife"
...Which "this plant" are you referring to and what deal is in the works...."There's a deal in the works to retool this plant that GM would be really foolish to turn down"
Jun 6, 2009 at 10:25 p.m.
Suggest removal
Tarheel...Which "this plant" are you referring to and what deal is in the works...."There's a deal in the works to retool this plant that GM would be really foolish to turn down"
Jun 6, 2009 at 8:46 p.m.
Suggest removal
Correction to Spring Hill: You WERE the small-car plant. As stated by Janesville's greatidea: Bring it on, baby!
Jun 6, 2009 at 8:10 p.m.
Suggest removal
gm sold outdated junk.
Jun 6, 2009 at 7:42 p.m.
Suggest removal
Dreaming of the product coming to Janesville is one thing but you have to look at the financials and politics. How many tens if not hundreds of millions will it cost GM to re-tool this plant? Why did they sell the tooling that could have been re-programed? If Aveo's and G3's are not selling, why would this new car sell?
Jun 6, 2009 at 6:58 p.m.
Suggest removal
Right To Work State! Thats what Wisconsin needs to stay competitive in Industry until we will remain second fiddle
Jun 6, 2009 at 6:37 p.m.
Suggest removal
Back in 2005-2006 time frame even Toyota moved operations from a Southern state because training the workforce was too costly.
Jun 6, 2009 at 3:32 p.m.
Suggest removal
gary: depending on what is in the glass, I might be thirsty!
Jun 6, 2009 at 2:37 p.m.
Suggest removal
Very profitable over the next couple of years? That is a very optimistic prediction. I'm not sure whether the glass is half full or half empty, but I'm pretty sure that someone has been drinking out of it.
Jun 6, 2009 at 1:51 p.m.
Suggest removal
greatidea...now that's the enthusiasm we should all have!
Jun 6, 2009 at 1:45 p.m.
Suggest removal
Quality product, highly educated hard working workforce, generations of dedication with the room and the same desire to do it all again even better than before- Janesville, Wisconsin! Bring it on! We'll show you how its done.
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.