GM reportedly picks Orion Township plant for upcoming small car
The state of Michigan finally got some good news Thursday when it learned that General Motors chose its Orion Township plant as the location that will produce the automaker's future small car. GM plans to make up to 160,000 cars at the plant, likely over two shifts.
When the General announced that it was entering bankruptcy on June 1, Orion was one of 14 facilities that was going to be closed under the automaker's recovery plan. GM then said that Orion was under consideration for a future small car, along with the Spring Hill, Tennessee plant that currently builds the Chevy Traverse and the recently closed Janesville, Wisconsin facility.
GM made no bones about the fact that the winning plant will get the need based not on the merits of the plant, but the size of the state and local incentives. The Detroit Free Press is reporting that the Township gave GM a 25-year tax abatement that could ultimately save the struggling automaker $100 million in that time frame. We're guessing officials figure that's a small price to pay for the chance to keep 1,200 good-paying jobs in a region that sorely lacks other employment options. GM is expected to make an official announcement about Orion today.
[Source: The Detroit Free Press | Image: Bill Pugliano/Getty]
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Reader Comments (Page 1 of 1)
why not the LS2LS7? 10:54AM (6/26/2009)
Shoulda been Spring Hill.
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Erik 11:08AM (6/26/2009)
Michigan needs it more than we do, so I say good for 'em
BrianFL 11:16AM (6/26/2009)
You got Bob Corker to mostly thank for Spring Hill not getting it.
Its sad too. I grew up that area. The GM plant was the only thing going for it. But even when the plant was running and the economy was good, that area had the highest unemployment rate in the state. I can't imagine living there now. I hope for best for some friends I have up there.
tuxchown 1:43PM (6/26/2009)
Screw Spring Hill. With all the plants we've lost here in Michigan, we needed this and needed it very badly.
why not the LS2LS7? 2:39PM (6/26/2009)
tuxchown, how long will Michiganders really be appreciative until the UAW decides it's time to start being unreasonable again?
GM would be smarter to move farther away from SE lower Michigan with any newly opened (or reopened) plants.
tuxchown 7:46PM (6/26/2009)
Well it's just too goddamned bad that they didn't consult you first.
jamie 10:55AM (6/26/2009)
Now, that's a surprise. But Orion Twp is not a bad choice either.
What's good for GM is good for Michigan. Hurrah!
I question the fact that only 160,000 units per year on TWO shifts will be built at the facility. I am sure that only ONE shift is necessary to accomplish that goal.
That brings up two more questions:
1. Why pay for twice as much labor as you require to get the job done? Perhaps Orion Twp officials had a say about that.
2. Obviously, the plant will still be grossly under-utilized, which should be able to pump out 360,000 units per year. Why is GM still not cognizant of how much it costs just to keep this plant open? The small car should have been incorporated into the Lordstown facility to maximize its usage and to achieve better economies of scale. Some platform modifications would have been necessary though.
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tuxchown 1:45PM (6/26/2009)
Orion is one of the newest plants in the system. That alone makes it a natural choice.
WRX09 10:59AM (6/26/2009)
Orion was a better choice because of several million dollars of improvements GM installed a couple of years ago including new paint equipment. That plant is a half mile from my office I am happy to see it will keep people employed locally.
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Avinash machado 11:04AM (6/26/2009)
RIP Aveo. Hope the new small car will be far better.
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Gary 11:12AM (6/26/2009)
Since they redid the interior in the past year, it's pretty decent looking inside.
AngeloD 11:23AM (6/26/2009)
This is another good example of how politics is now dictating decisions at GM that should be made only on a profit-loss basis.
The job should have gone to Daewoo or to a GM plant in Mexico.
Who's going to by these overpriced small cars? (Other than the Government)
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Seminole 11:50AM (6/26/2009)
I think a $100 million tax savings makes a pretty strong case when analyzed from a profit/loss perspective.
naimskyline 11:48AM (6/26/2009)
it should've been spring hill
but any ways i dont think going to close the plant for good down there because it's almost a brand new facility it got nearly a billion dollars invested very recently so it
would be incredibly stupid for gm to close that plant.
another car will possibly be produced in that plant.
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nexus 12:26PM (6/26/2009)
I wonder why they didn't pick the recently closed old plant Janesville WI. ? Congratulations Orion Township.
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richoux 2:33PM (6/26/2009)
How serious can they be? It doesnt even have a name, let alone a design. Its called "new small car."
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