Source: GM To Build Small Car In Michigan

Wis. Officials Lobbied For Janesville Plant

Updated: 9:04 am CDT June 26, 2009

A person briefed on the decision said Michigan has won the high-stakes competition with Wisconsin and Tennessee to build General Motors' next-generation subcompact car.

videoVIDEO: Auto Expert Explains GM's Decision

The person spoke on condition of anonymity because the plan hasn't been made public but said the official announcement will come Friday.

GM spokeswoman Sherrie Childers Arb declined to comment Thursday.

The car will be built at a retooled midsize car factory in Orion Township near Pontiac. That will save about 1,200 jobs at the factory, which had been slated to shut down later this year.

Also considered were the Janesville plant in southern Wisconsin and the Spring Hill plant in Tennessee.

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The Janesville plant shut down SUV production last December, putting about 1,200 people out of work. It closed entirely after completing some contract work in April.

Janesville faced an uphill battle to land the new car line because it didn't have a stamping plant nearby, according to WISC-TV auto expert Matt Joseph.

"Orion was always the leading contender. They had a $44 million incentive package -- no one was willing to come up with cash. But in any case, that was the leading contender because you have desperate unemployment in the Detroit area, the Pontiac area, that reaches toward 20 percent, and the people who made this decision live in Michigan," Joseph said.

Joseph said GM is now faced with what to do with the plant in Janesville.

"It's very unlikely GM would do anything with Janesville. I don't know what the town will do with the plant. GM will probably allow the town to dispose of it. That kind of real estate usually sits around for a long time. If you can find someone to come and do it, great, more likely it gets broken up into separate facilities," Joseph said.

Janesville city officials said Thursday that they have not yet heard any official word from GM.

Gov. Jim Doyle said on Friday that Wisconsin offered a "very strong" incentive package to GM

Doyle, in a statement, said he doesn't believe Michigan matched Wisconsin in its incentive package. The governor said he hopes Wisconsin wasn't used "to simply leverage more resources for Michigan."

The political push to bring the small car line to Janesville was widespread. The governor, U.S. Sens. Herb Kohl and Russ Feingold, U.S. Reps. Paul Ryan and Tammy Baldwin were among those involved in lobbying for Janesville.

Lawmakers said Thursday they haven't heard any official word from GM and will hold any comment until that happens.

Representatives for Assembly Speaker Mike Sheridan, who is a former GM autoworker and union head, said they're gathering information on the issue.

Sheridan, along with the governor and others, put together a package to lure GM back to the state but didn't release what was in that package.

Stay tuned to WISC-TV and Channel 3000 for continuing coverage.

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