GM declines Ohio's $56M offer to keep plant open

[killerrd2]

GM declines Ohio's $56M offer to keep plant open

DAYTON, Ohio -- The Ohio Department of Development says General Motors Corp. has declined a tax credit and grant package worth more than $56 million to keep open its SUV plant in the Dayton suburb of Moraine.

Department spokeswoman Kelly Schlissberg said Thursday the state is disappointed and will continue to look for alternate uses for the plant, which employs about 2,400 workers.

The automaker has said it plans to close the plant by 2010 or sooner because of a customer shift to smaller vehicles

The proposed assistance announced Wednesday consisted of a $54 million job retention tax credit and a $2 million "rapid outreach" grant.

Link:
http://www.detnews.com/apps/pbcs.dll...808290421/1148

[Blair1118]

Thats sad, my dad has a Trailblazer and my mom has a Rainier and they are both great cars! Guess they won't be able to replace them

[ChevyRules]

If Ohio really does want to keep Moraine open just offer GM to pay for the retooling so the plant can make cars or unibody crossovers instead of BOF SUV's.

[Smaart Aas Saabr]

Originally Posted by ChevyRules

If Ohio really does want to keep Moraine open just offer GM to pay for the retooling so the plant can make cars or unibody crossovers instead of BOF SUV's.

They should offer to buy 56 million worth of Trailblazers

[Co27sskid]

Originally Posted by Smaart Aas Saabr

They should offer to buy 56 million worth of Trailblazers

Lol, best Idea yet. Use em as Parks Dept trucks or sumin.

[ByTheLake]

If there isn't a business case to keep the plant open, I doubt $56m will change many minds. Its a drop in the bucket honestly.

However, Nice try Ohio.

[MaxLegroom]

How about offering them enough that it would be a good idea to bring back some production from Mexico?

[elderon]

Damn. Maybe an alternative will come up.

[SCCA1995]

Originally Posted by ChevyRules

If Ohio really does want to keep Moraine open just offer GM to pay for the retooling so the plant can make cars or unibody crossovers instead of BOF SUV's.

That's what I was thinking. If GM wants to get more small cars to the market faster, then re-tool a plant that has been slowed down.

[FenwickHockey65]

Originally Posted by Smaart Aas Saabr

They should offer to buy 56 million worth of Trailblazers

I just did the math. At a base price of $28,400, that totals out to about 1,972 Trailblazers.

[GM-Joe]

It's a shame, I feel for the people of that entire area because things are going to get tough. But the State of Ohio should have not openned there are in love with Honda, though Honda has brought jobs, those jobs are only replacing already better paying UAW jobs. Additionally, those Honda's are not all American Assembled, I believe that some 20% are still imported from Japan, but I could be wrong. I do know that except for the Hyandai Sonata, the CRV has the lowest content of N.A. parts of any vehicle assembled in N.A. and sold in the U.S; I believe it is 17% for the CRV and 10% for the Sonata, up from roughly 2.5% for the Sonata. Thus, not supporting companies of your nation and supporting foreign based countries is going to give a competitive advantage to the foreign firms and result in what is beginning to happen in Moraine. It is sad, but politics are politics.

Also, this affected some 6,000 Delphi employees in Dayton, which are now out of work, other suppliers in the Moraine area, and finished off the Delphi plant in Columbus.

[BuickBoy]

Originally Posted by killerrd2

GM declines Ohio's $56M offer to keep plant open

DAYTON, Ohio -- The Ohio Department of Development says General Motors Corp. has declined a tax credit and grant package worth more than $56 million to keep open its SUV plant in the Dayton suburb of Moraine.

Department spokeswoman Kelly Schlissberg said Thursday the state is disappointed and will continue to look for alternate uses for the plant, which employs about 2,400 workers.

The automaker has said it plans to close the plant by 2010 or sooner because of a customer shift to smaller vehicles

The proposed assistance announced Wednesday consisted of a $54 million job retention tax credit and a $2 million "rapid outreach" grant.

Link:
http://www.detnews.com/apps/pbcs.dll...808290421/1148

Take the $56M and towards the end of 2009 place a large order for trailblakers to be used for the State of Ohio govt vehicles. Then take the estimated unemployment and place another order. Have the federal govt place anohter 200M order - that will keep the plant open

[TruckMan]

I didn't think GM would bite on this deal. It didn't make much sense given their current situation. GM shouldn't sign up to anything requiring mandatory wages or minimum numbers of employees. GM needs to cut all the fat it can...

[ChevyRules]

Originally Posted by TruckMan

I didn't think GM would bite on this deal. It didn't make much sense given their current situation. GM shouldn't sign up to anything requiring mandatory wages or minimum numbers of employees. GM needs to cut all the fat it can...

Problem is Moraine wasn't fat. The union there has been more flexible and more willing to work with GM then the UAW has been. The only thing preventing GM from keeping Moraine open is the cost to switch the plant from a body on frame plant to a unibody plant.

[NfamousZ24]

Originally Posted by ChevyRules

Problem is Moraine wasn't fat. The union there has been more flexible and more willing to work with GM then the UAW has been. The only thing preventing GM from keeping Moraine open is the cost to switch the plant from a body on frame plant to a unibody plant.

VEBA is hurting us also. IUE has over 30,000 members retired and now only has 2,000 still working and about to be 1,000. I mean it isn't our fault that GM spun off Delphi and GM kept the retirees. We knew as an Assembly Plant we wern't the same as all of the parts plants and that is why we spun off the local 801 and became IUE 798.

I don't want to leave GM with the next round of buyouts, But then again I don't want to move.

Also GM needs $562m before they might take a look. IMO 56.2m really isn't that much.