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Janesville's GM Plant Slated To Close Early

Plant To Close Dec. 23

UPDATED: 12:19 pm CDT October 14, 2008

The doors of Janesville's soon-to-be-shuttered General Motors plant will close for good months earlier than originally projected, company officials announced on Monday

VIDEO: Watch The Report | READ: City Leaders, Residents React To Plant's Early Closure | TALKBACK: What Do You Think?

General Motors Corp. said it will shut down its assembly plant on Dec. 23.

The plant's production line stood still on Monday night, but will start again on Tuesday morning. Employees were informed early Monday morning that the plant will cease operations by December.

The Janesville factory employs 1,200 workers and makes the GMC Yukon, Chevrolet Tahoe and Chevrolet Suburban sport utility vehicles. GM spokesman Chris Lee said Monday that the market for those vehicles is shrinking, so the automaker had to make the difficult decision to idle the factory early.

The company had previously said it would shut down Janesville and three other pickup truck and SUV factories by 2010.

Until Dec. 23, workers will still build GMC and Chevrolet Tahoes and Suburbans all the while hoping somehow that the plant still has a future in Janesville.

  SURVEY
How do you think the earlier closing of the General Motors plant in Janesville will affect the city?

Earlier this month, GM moved up the closure of another of those plants, an SUV factory in Moraine, Ohio. It will also close Dec. 23.

GM is dealing with slumping sales and a collapse in its stock price. Last week, GM stock fell to a 58-year low as shares lost nearly half their value.

Locals React To Plant's Early Closure

Word about the closure spread quickly through Janesville. The plant has been a part of the community since it opened in 1919.

The plant's shutdown is expected to have a big impact on the Janesville area.

"When you consider how many companies are dependent on the General Motors plant, I think it's going to be a big impact on the whole entire city," said Betty Erlefson, a Janesville resident.

For many, GM is in the family. Their parents worked on the assembly line and their grandparents did as well.

"I think that's what's got people upset. They're going to have to move if something doesn't come in. I think everybody's pretty disappointed. They're going to lose their job, but they're also thinking something's going to come in," said Eric Porter, who has worked for GM for 23 years.

Officials Respond To News

Gov. Jim Doyle said in a statement that he and others will work to try to get GM officials to change their mind.

"General Motors' announcement of the final day of production at the Janesville plant is another tragic example where hard-working families are carrying the brunt of the burden for the financial failures on Wall Street. Even in the face of national economic challenges, we will still continue our efforts with the local union, businesses, community leaders and our congressional delegation to convince GM to bring a new product line to the Janesville plant," Doyle said in the statement.

Doyle also pledged state resources to help workers and their families affected by the closing.

Echoing Doyle's comments, U.S. Sen. Russ Feingold, D-Wis., said that officials are working to convince the company to keep the plant open. He said that the company is still reviewing an incentive package officials presented to the company last month.

"GM's announcement is disappointing news for the plant's workers, their families, and all the other businesses in the Janesville region that support the GM plant. I will do all I can to help the people of Janesville meet the challenges," Feingold said in a statement.

State Rep. Mike Sheridan, a Janesville Democrat and former plant union representative, said that he's still hopeful the General Motors plant in Janesville will get a new product line and stay open. Sheridan said in a statement GM is still considering whether to bring a line of small cars to the facility.

Union officials with UAW Local 95 said that they think the announcement "is a setback," but they too would continue to secure a new product for the plant.

GM spokesman Chris Lee said those discussions continue but have no bearing on the decision to end the SUV line.

GM Has History In Janesville

GM's rich history in Janesville started 90 years ago when it purchased the Samson Tractor Co.

In 1919, the plant's first tractor was produced. In 1923, the factory started making Chevrolets. Between 1932 through 1934, the plant was closed because of the Great Depression. With the onset of World War II, the plant began to manufacture artillery shells.

The plant reached its highest employment levels in 1978 when 7,100 workers manned the factory. In 1991, it was re-tooled for SUVs and large pickups.

Stay tuned to WISC-TV and Channel 3000 for continuing coverage.





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