Preserving GM plant spurs action

[pupp1]

Preserving GM plant spurs action
Oklahoma Gov. Brad Henry wants to personally meet with General Motors Corp. officials to see what needs to be done to preserve the company's Oklahoma manufacturing plant.

"We want to know what we can do," Henry spokesman Paul Sund said Friday. "We are more than willing to do whatever we can to ensure that the operation continues to thrive and grow in Oklahoma."

Kathy Taylor, Oklahoma secretary of commerce and tourism, said the state had a good relationship with the plant and regular contact prior to this week's announcement that GM would close plants across the country. Now the state has to wait and see what the manufacturer will do next and what criteria will be applied in deciding which plants to keep and which ones to close, she said.

"We are in constant communication with the plant here," Taylor said. "I am confident Detroit knows that we want to keep the plant."

Concern about the relationship and the plant's future arose when the automaker's chairman and chief executive told shareholders Tuesday that GM plans to close plants and eliminate 25,000 manufacturing jobs in the United States by 2008 to generate annual savings of roughly $2.5 billion. About one out of six GM jobs in the United States would be eliminated.

Speaking at the company's annual general meeting, GM Chairman and CEO Rick Wagoner wouldn't say which plants might close. GM spokeswoman Nancy Sarpolis said Friday the company continued working on criteria for which plants to close, but no timetable has been set for when that criteria would be available.

"These things take planning and thought," Sarpolis said. "We are still working."

General Motors manufactures a line of SUVs at its Oklahoma City plant. The company employs 2,600, making GM the third-largest manufacturer in the state, according to data from the Oklahoma Department of Commerce. The company trails the 3,300 at Goodyear in Lawton and the 3,100 at ConocoPhillips in Bartlesville and Ponca City.

In 2002, a $750 million project converted the plant from production of passenger cars to the mid-sized SUVs it produces now.

State leaders recognized the critical need to keep manufacturers, like GM, Taylor said, and acted in the most recent session to preserve such businesses. The state worked to control costs, create a good business environment, improve education through a $500 million bond issue and, most importantly, fix its workers' compensation system, Taylor said.

"We looked at the industry in the state. We knew this workers' comp legislation would effect the largest employers and small business," Taylor said. "We have done what we can do."

It is too soon to say what else the state might do, Taylor said. The GM plant already qualifies for a number of incentive programs, including the Quality Jobs program that returns some taxes to companies for high-paying job creation.

After a tornado ripped through the plant on May 8, 2003, tearing off the plant's west wall and heavily damaging a paint shop, body shop, powerhouse and cooling towers, the state aided GM in rebuilding. The state provided an exemption on sales tax for the building material used to repair the plant.

Oklahoma also reached out to General Motors when the company announced April 5 that it would eliminate a shift in Oklahoma City that would have effected about 830 jobs. However, that scheduled shift reduction was postponed later that month based on an updated report on market demand for the SUVs.

Market demand is the one factor that should not be ignored, GM's Sarpolis said. The demand for the Chevrolet Trailblazer EXT, GMC Envoy XL and the GMC Envoy Denali XL, all produced in Oklahoma City, could be important in determining any plant's fate, Sarpolis said.

GM posted a $1.1 billion loss in the first quarter and its U.S. market share has fallen to 25.4 percent from 27 percent a year ago, as customers increasingly are choosing models from Toyota Motor Corp., Nissan Motor Co. and other Asian automakers.

"The one think that a lot of people are forgetting but is going to be a huge factor is market conditions and sales," Sarpolis said. "Everyone is focused on quality, productivity, safety and efficiency.

"A huge factor is going to be the market and where it goes."
Source

[saturnsteve]

This is a huge thing here in Oklahoma. Governor Henry has already put up billboards saying Oklahoma Loves GM. This is the second largest employer in the state. If we lost this plant, this state would be ruined!!

[THE_SMURF]

Originally Posted by pupp1

Preserving GM plant spurs action
Oklahoma Gov. Brad Henry wants to personally meet with General Motors Corp. officials to see what needs to be done to preserve the company's Oklahoma manufacturing plant.

"We want to know what we can do," Henry spokesman Paul Sund said Friday. "We are more than willing to do whatever we can to ensure that the operation continues to thrive and grow in Oklahoma."

Kathy Taylor, Oklahoma secretary of commerce and tourism, said the state had a good relationship with the plant and regular contact prior to this week's announcement that GM would close plants across the country. Now the state has to wait and see what the manufacturer will do next and what criteria will be applied in deciding which plants to keep and which ones to close, she said.

"We are in constant communication with the plant here," Taylor said. "I am confident Detroit knows that we want to keep the plant."

Concern about the relationship and the plant's future arose when the automaker's chairman and chief executive told shareholders Tuesday that GM plans to close plants and eliminate 25,000 manufacturing jobs in the United States by 2008 to generate annual savings of roughly $2.5 billion. About one out of six GM jobs in the United States would be eliminated.

Speaking at the company's annual general meeting, GM Chairman and CEO Rick Wagoner wouldn't say which plants might close. GM spokeswoman Nancy Sarpolis said Friday the company continued working on criteria for which plants to close, but no timetable has been set for when that criteria would be available.

"These things take planning and thought," Sarpolis said. "We are still working."

General Motors manufactures a line of SUVs at its Oklahoma City plant. The company employs 2,600, making GM the third-largest manufacturer in the state, according to data from the Oklahoma Department of Commerce. The company trails the 3,300 at Goodyear in Lawton and the 3,100 at ConocoPhillips in Bartlesville and Ponca City.

In 2002, a $750 million project converted the plant from production of passenger cars to the mid-sized SUVs it produces now.

State leaders recognized the critical need to keep manufacturers, like GM, Taylor said, and acted in the most recent session to preserve such businesses. The state worked to control costs, create a good business environment, improve education through a $500 million bond issue and, most importantly, fix its workers' compensation system, Taylor said.

"We looked at the industry in the state. We knew this workers' comp legislation would effect the largest employers and small business," Taylor said. "We have done what we can do."

It is too soon to say what else the state might do, Taylor said. The GM plant already qualifies for a number of incentive programs, including the Quality Jobs program that returns some taxes to companies for high-paying job creation.

After a tornado ripped through the plant on May 8, 2003, tearing off the plant's west wall and heavily damaging a paint shop, body shop, powerhouse and cooling towers, the state aided GM in rebuilding. The state provided an exemption on sales tax for the building material used to repair the plant.

Oklahoma also reached out to General Motors when the company announced April 5 that it would eliminate a shift in Oklahoma City that would have effected about 830 jobs. However, that scheduled shift reduction was postponed later that month based on an updated report on market demand for the SUVs.

Market demand is the one factor that should not be ignored, GM's Sarpolis said. The demand for the Chevrolet Trailblazer EXT, GMC Envoy XL and the GMC Envoy Denali XL, all produced in Oklahoma City, could be important in determining any plant's fate, Sarpolis said.

GM posted a $1.1 billion loss in the first quarter and its U.S. market share has fallen to 25.4 percent from 27 percent a year ago, as customers increasingly are choosing models from Toyota Motor Corp., Nissan Motor Co. and other Asian automakers.

"The one think that a lot of people are forgetting but is going to be a huge factor is market conditions and sales," Sarpolis said. "Everyone is focused on quality, productivity, safety and efficiency.

"A huge factor is going to be the market and where it goes."
Source

I love GM and her products
But this story underlines the firms inablilty to be flexable to changes in the
market. The leaders of GM need to learn to be quicker on their feet, and make changes not close plants. I live here in Oklahoma and we have already
have seen our customer base shrink due to plant closings from manufacturers
of other products. The GM plant has recieved a great amount of help from
the people of oklahoma, and if GM closes it, I and others will take this as a
collective slap in the face.
We cannot help that GM allowed it self to get into the destructive "put" that
has caused the cash flow problem, but Oklahoma will take a very dim view of the residents of the state having to suffer because the "largest auto maker" screwed up. I do not hear any of the upper management taking pay cuts or
working without comp to help the firm.
Where is their sacrifice?

[plane]

Hmmm..... This is not just G.M.. What about the greedy people that won't support U.S.A. industry because it's not "cool"? Take a look around you and see how many foreign cars your friends and neighbors drive. I would take that as a slap in the face because your friends and neighbors are supporting Yokahama not Oklahoma. That's where it's at.

[IMPALAon20s]

Originally Posted by plane

Hmmm..... This is not just G.M.. What about the greedy people that won't support U.S.A. industry because it's not "cool"? Take a look around you and see how many foreign cars your friends and neighbors drive. I would take that as a slap in the face because your friends and neighbors are supporting Yokahama not Oklahoma. That's where it's at.

yeah, i agree. matter of fact friends and family that come to my house with hondas and toyotas, have instructions to park in street and never in my driveway. and that rule is enforced!!

[asim]

Originally Posted by IMPALAon20s

yeah, i agree. matter of fact friends and family that come to my house with hondas and toyotas, have instructions to park in street and never in my driveway. and that rule is enforced!!

LOL

[drew770]

I would hate to see OKC lose the GM plant but GM has to cut costs somewhere and if the demand for the products OKC produces are low then this is where it wouldn't be in GM's advantage to keep it open.

[cfch3399]

It's good to see a politician for once doing something to benefit his constituency.

[GM-10]

"OKC = RWD" ... That should be the battle cry.

[Kennyboy]

Is the oklahoma plant from the 1914's or something? Is must be at least 50 years old.

[Stu]

Originally Posted by IMPALAon20s

yeah, i agree. matter of fact friends and family that come to my house with hondas and toyotas, have instructions to park in street and never in my driveway. and that rule is enforced!!

I do the exact same thing! lol

[paul3230]

This hit's so close to home because I'm from Oklahoma and I interned at the OKC GM plant for three years! We cannot lose it, but I understand that GM has to think on the large scale...To answer an earlier question, the plant opened in 1979 producing citations