State offers GM $56M to keep Moraine plant open (GMT360)

[NfamousZ24]

DAYTON — Ohio Lt. Gov. Lee Fisher has signed a letter offering General Motors Corp. more than $56 million to keep 2,400 jobs at the automaker's Moraine assembly plant.

Kevin Carver, an Ohio Department of Development representative to Southwestern Ohio, did not know if the letter — which is dated Aug. 20 — has been sent yet to Troy Clark, president of GM North America, to whom the message is addressed.

But Carver said Wednesday Aug. 27 that the offer to GM is unusual in that typically an employer approaches the state with a possible project or expansion in mind and then the state responds with a set of incentives to secure the expansion. In this case, Carver said, Ohio government is taking the first step.

"We are prepared to demonstrate our support of keeping the plant open with this preliminary commitment of assistance, valued at more than $56.2 million," Fisher's letter to Clark said.

The assistance consists of a $54,239,220 job retention tax credit and a $2 million "rapid outreach" grant, the letter said.

The offer assumes GM would retain 2,400 full-time jobs at the current plant, where the average employee hourly wage would be $27.55, not counting benefits.

~

Also, he said Gov. Ted Strickland and Fisher have committed to quarterly meetings with GM executives to talk about GM's presence in the state.

To help secure a new product and an additional shift for the GM plant in Lordstown, Ohio offered more than $80 million in incentives over 15 years, the Detroit News reported last week. The newspaper reported that Fisher "joked" with Rick Wagoner, GM chief executive, that the state had been willing to double that amount, if necessary.

http://www.daytondailynews.com/b/con...2708gmweb.html

Update

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

DAYTON — 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 during the GM Regional Response Task Force consisted of a $54 million job retention tax credit and a $2 million "rapid outreach" grant.

The task force was formed in response to GM's June announcement that its Moraine plant will cease production by 2010. The group is working simultaneously to persuade leaders of GM to give the plant a new product, prepare employees for eventual closure and secure redevelopment for the plant site.

http://www.daytondailynews.com/b/con...2808gmweb.html

[King Riffle]

Wisconsin did that and got screwed. Good luck Ohio.

[FenwickHockey65]

So that's where all my tax money is heading...

[baby-vortec2900]

So once( or I should say if ) this plant closes,then that means no more Trailblazer/Envoy right?

[ChevyRules]

They should offer to pay the cost of switching Moraine over to car production which I am sure it is more then $56 million.

[Pedal 2 Metal]

That's such a tiny fraction of what it costs to retool a plant. Nice try... but not going to actually do anything.

[likearock00]

Originally Posted by baby-vortec2900

So once( or I should say if ) this plant closes,then that means no more Trailblazer/Envoy right?

We can only hope!

It's sad to see this, but you have to commend the gov't being pro-active in the welfare of it's citizens. Now if only GM would take the bait.....

[baby-vortec2900]

What do you think the chances are that GM will take the bait and keep it open?

And is the plant going to be re-tooled to make cars? It was mentioned above and I haven't heard anything to that affect so I am curious.

[NfamousZ24]

I agree $56.2M is chump change for what is needed, But it is a start.

[NfamousZ24]

Sooo I just got a phone call from a Co Worker that is on 2nd shift right now.

We already know that they are going to eliminate 2nd shift effictive date Sept 29th. (That is going to effect me)

This is just Rumor just a Rumor right now. But my friend just called me and said that they are passing out papers right now saying that GM is going to announce tommrow the 60 day WARN for the plant closure. Like I said this is just rumor and should be treated as so until it is official.........

I am just about speachless......if it is true.......omg

[63GrandSport001]

Originally Posted by FenwickHockey65

So that's where all my tax money is heading...

That state is worried about how much demand it will loose with the closure of this plant as those workers will not be able to find jobs that pay as much in normal times let alone times like these.

[Olds88]

Originally Posted by likearock00

We can only hope!

I take it you've never had an actual need for a utility vehicle have you? The TrailBlazer may not have the yuppiest interior, but its extremely capable and has superb powertrains. It makes an excellent towing vehicle for recreational use. Traverse or Equinox are NOT replacements for TrailBlazer, they lack the truck essentials like RWD and a frame. The only thing GM has that can replace the TB is the Tahoe...

[Darc Requiem]

Originally Posted by NfamousZ24

Sooo I just got a phone call from a Co Worker that is on 2nd shift right now.

We already know that they are going to eliminate 2nd shift effictive date Sept 29th. (That is going to effect me)

This is just Rumor just a Rumor right now. But my friend just called me and said that they are passing out papers right now saying that GM is going to announce tommrow the 60 day WARN for the plant closure. Like I said this is just rumor and should be treated as so until it is official.........

I am just about speachless......if it is true.......omg

I hope that is not the case. I hope the plant stays open. When I lost my job in 06, it took me forever to get another one with similar pay and the benefits weren't close to my prior job. I actually make more money now that I did at my prior job but I'd rather have the benefits, 401k, and lower pay of my prior job personally.

[elderon]

I really hope they can keep this plant open somehow. Its very sad and disheartening to hear of so many people loosing their jobs.

[boz2730]

Originally Posted by King Riffle

Wisconsin did that and got screwed. Good luck Ohio.

Wisconsin put up $10 million for worker training to get Janesville ready for GMT-900 production.

Not to burst the bubble, but Wisconsin is going to pony up more than Ohio's $56 million to General Motors as incentives to keep operations in Southern Wisconsin. Along with UAW Local 95's new 100% compliance to the "True North" operating agreement, state and local officials will be meeting with GM execs next month to discuss a possible new plant (preferred) or retooling of Janesville Assembly to produce small cars.

All of these incentives reminds me of when they decided to close Arlington in the early 1990's, but keep Willow Run open. Both were building GM's large rear-wheel drive cars at the time. BUT with the help of local & state government in Texas AND Arlington Aseembly's ratification of a better local operating agreement, GM reversed their decision and closed Willow Run instead.