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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/article?AID=/20080829/AUTO01/808290421/1148
 

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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 :(
 

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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.
 

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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/article?AID=/20080829/AUTO01/808290421/1148
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:p:
 

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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...
 

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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.
 

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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.
 

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I just did the math. At a base price of $28,400, that totals out to about 1,972 Trailblazers. :lmao:
400 a shift 2 shifts a day. That would only take us 2.5 days or in a month 1 week with 1 shift.

I miss the days when we did 635 a shift 2 shifts a day 6 days a week.
 

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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.
GM-Joe

This is a point that I try to make to many people here in Tennessee. When they say a foreign brand is made here. I explain to them no it's assembled here and some of the parts are made here not the same percentage as the domestics. I retired from GM Powertrain in Ypsilanti, Michigan 2 years ago then moved to TN. I don’t think down here they understand just how many jobs are created by making the components that go into cars / trucks. You are right in saying that the overseas manufactures have displaced more jobs than they have created. Even if Honda, Nissan and the rest have the same content as the big three bottom line is when that vehicle sells the profit doesn’t stay here. I often wonder if the states that have lured the foreign automakers made the same offer to domestic brands.
 

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Does Ohio realize that gm would totally have to retool, because gm cant keep making what is basically a 2001 MY truck that is already way past its shelf life? how is there room for acadia/traverse/enclave/outlook next to the gmt360 or a body on frame replacement next to them in the showroom??????
 

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400 a shift 2 shifts a day. That would only take us 2.5 days or in a month 1 week with 1 shift.

I miss the days when we did 635 a shift 2 shifts a day 6 days a week.
Don't we all? My dad used to bring in over $1500/week with Delphi. Towards the end, he was lucky to get $800/week.

Times sure have changed...no more overtime for anyone...:(
 
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