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Tenn., Wis. facilities lose bid to build car
Published on Saturday, Jun 27, 2009
Associated Press
SPRING HILL, TENN.: Workers at General Motors' soon-to-be-idled assembly plant in Tennessee held out hope for a reprieve, but now it's back to the waiting game.
GM's decision Friday to build a new small car at a Michigan plant allowed that economically battered state to rejoice, while the announcement is probably a death knell for the third of the finalists in Janesville, Wis.
Officials in Tennessee now hope that the Spring Hill plant on the outskirts of Nashville will be assigned a new product before it is mothballed.
Maury County Mayor James Bailey said he was frustrated that all the work state and local officials have done to help develop the plant over the decades appears to ''have been tossed aside and forgotten.''
''The Spring Hill facility has been sacrificed, and its future has been put in jeopardy,'' Bailey said.
Mike Herron, chairman of United Auto Workers Local 1853, said Spring Hill was the only plant that could have built the new car without any investment.
Michigan, Wisconsin and Tennessee all offered incentives to General Motors Corp. to lure the plant.
The company said it would use an idled midsize car plant in Orion Township, about 40 miles north of Detroit, to assemble small and compact cars, including a subcompact model based on the Chevrolet Spark that is set to go on sale in Europe next year.
GM said it expects to start retooling in late 2010 and run two shifts at the plant by 2011, producing 160,000 vehicles annually. The move will save 1,200 jobs at Orion, plus 200 more at a nearby parts stamping plant.
Herron said recent investments in the Spring Hill plant, which was originally built to make Saturns, approached $1 billion. GM retooled the plant to begin making the Chevrolet Traverse crossover vehicle in October.
Tennessee has been a recent hotbed of auto activity. Germany's Volkswagen AG is building a $1 billion assembly plant in Chattanooga, and Japan's Nissan this week secured a $1.6 billion federal loan to build electric cars and battery packs to power them at its Tennessee complex.
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