News

Orion, Mich. wins GM bid

Janesville’s plant will not restart vehicle production after closure in April

The much hoped-for reinvention of the Janesville General Motors manufacturing plant will not come to fruition, officials announced last month. 

The plant ceased its SUV production at the end of last year, putting hundreds of residents out of work. The plant shut down its operation completely in April.

Tennessee and Michigan were the other two states vying for GM to resurrect their respective plants for production of a new generation subcompact car. 

The plant in Orion Township, Mich., about 40 miles north of Detroit, was the one eventually chosen for production. 

Gov. Jim Doyle presented the case for Janesville both in person and in a letter to GM officials, offering over $195 million in incentives and benefits as well as ideas on lowering capital costs by $124 million. 

“The governor feels that Wisconsin put a very, very strong offer on the table … but unfortunately, he was deeply disappointed because GM decided to go to Michigan,” Doyle spokesperson Lee Sensenbrenner said. 

Sensenbrenner added there are many provisions in the new state budget geared toward helping Janesville’s economy cope with this blow, including specific tax credits and business development plans.

The package presented to GM by Michigan far exceeded Wisconsin’s, totaling around $1 billion.

In a statement, Assembly Speaker Mike Sheridan, D-Janesville, said Wisconsin put forth a competitive package and the news was definitely disappointing. He added the state will definitely try to help the affected communities recover. 

“Janesville and Wisconsin continue to be home to great manufacturing facilities and the best workforce in the world, and we will continue to work to bring good-paying, family-sustaining jobs to Wisconsin,” Sheridan said.

Sheridan worked for the Janesville GM plant for 31 years, starting out on the assembly line and eventually becoming president of the local United Auto Workers chapter.

GM has recently closed many plants and dealerships across the country, and the company was forced to declare bankruptcy. On July 10, GM held a press conference revealing its plans for the new direction of the company as it exited bankruptcy little over a month later.

Fritz Henderson, CEO of GM, said the new GM was formed by the old GM’s strongest assets and will have a new corporate structure, stronger balance sheet and a renewed commitment to customer service and satisfaction. 

“Today marks the beginning of a new company, our company,” Henderson said in a press conference. “[A company] that will allow every single employee, including me, to return to the business of designing, building and selling great cars and trucks.”

While both the United States and Canadian governments still own sizeable stakes in GM, Henderson said they will be more like silent partners, allowing GM to make the decisions.

Henderson also said there will be more cars built at the Orion GM plant than the new subcompact car but would not discuss the specifics about what kinds of cars they will be.