UPDATE: GM's Fight to Survive

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UPDATE: GM's Fight to Survive UPDATE: GM emerges from bankruptcy.

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UPDATED Friday, July 10, 2009 --- 7:35 a.m.

By TOM KRISHER
AP Auto Writer

DETROIT (AP) -- A person briefed on the matter says General Motors Corp. has emerged from bankruptcy protection after signing papers to transfer the bulk of its assets to a new, leaner company majority-owned by the U.S. government.

The person, who asked to remain anonymous because the action hasn't been officially announced, said Friday the action came at 6:30 a.m. EDT Friday.

One bankruptcy expert called GM's 40-day case the fastest ever for a company of its size.

The new GM is a smaller company that is less burdened by the staggering debt that nearly sent it to liquidation.

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UPDATED Tuesday, July 7, 2009 --- 2:15 p.m.

MADISON, Wis. (AP) -- Wisconsin offered General Motors about $200 million in incentives to locate its new small car plant in Janesville.

The city of Janesville reported the total in a press release Tuesday, and assistant Rock County administrator Phil Boutwell confirmed that was the state's offer.

Janesville's release says the $200 million offer included $38 million worth of incentives from Beloit, Janesville and Rock County.

Boutwell says Rock County promised $20 million in incentives. Janesville says it offered $15 million plus savings of up to $1 million a year by offering to operate the plant's wastewater facility. Beloit offered $2 million.

GM last month selected a facility in Orion Township north of Detroit to assemble small and compact cars over Janesville and another finalist in Spring Hill, Tenn., near Nashville.

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UPDATED Friday, June 26, 2009 --- 2:30 p.m.

MADISON, Wis. (AP) -- Wisconsin Attorney General J.B. Van Hollen has joined 41 other states' objections to bankruptcy plans for General Motors dealers.

Van Hollen's office says GM notified dealerships June 1 they must sign new agreements in the bankruptcy. The states say the agreements force current dealers to waive protection rights they're entitled to under state laws.

Nebraska Attorney General Jon Bruning says if the dealers don't sign the agreements they could be forced out of business.

A federal bankruptcy judge in New York is scheduled to hold a hearing Tuesday on the objections.

Van Hollen announced joining the other states on Friday, the same day GM said it would build a new line of compact cars in Michigan rather than Janesville.

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UPDATED Friday, June 26, 2009 --- 12:30 p.m.

DETROIT (AP) -- General Motors Corp. is confirming it will use an idled assembly plant in Orion Township, Mich., and a parts stamping facility in Pontiac, Mich., to build small and compact cars, a move expected save 1,400 jobs.

GM confirmed the plant selection in a statement Friday, but said the decision is dependent on the outcome of negotiations between the company and the state on incentives.

A person briefed on the decision told The Associated Press on Thursday that Orion Township, about 40 miles north of Detroit, had been chosen.

The plant beat out plants in Spring Hill, Tenn., and Janesville, Wis., for the work.

GM says the Orion assembly plant is expected to be retooled and run on two shifts, building 160,000 vehicles annually.

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UPDATED Friday, June 26, 2009 --- 11:35 a.m.

ORION TOWNSHIP, Mich. (AP) -- A win for Michigan is a loss for Wisconsin.

Wisconsin Gov. Jim Doyle is confirming that GM has picked a site in Michigan to build its next-generation subcompact car over his own state.

He says he's "deeply disappointed" by the decision, but he says he realized it would be an uphill battle to get the automaker to reopen a Janesville plant in his state. A Spring Hill, Tenn. plant was also being considered.

It's a bright spot for recession-plagued Michigan, however. A person briefed on the decision says GM will keep 1,200 jobs at the retooled factory in the state with a nation-leading 14.1 percent unemployment.

An employee at the Orion Township plant calls it "awesome news," but he's still unsure whether he'll keep his job because it's not clear if the plant will need the same amount of workers it has now.

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UPDATED Friday, June 26, 2009 --- 9:00 a.m.

Washington, D.C. – Following the announcement that General Motors has selected Orion Township, Michigan for the location of production of its new subcompact car, U.S. Senators Russ Feingold and Herb Kohl and U.S. Representatives Paul Ryan and Tammy Baldwin released the following statement:

“Obviously we are very disappointed by the decision announced today to continue idling the Janesville plant, but we are deeply proud of the strong showing made by the people of Janesville, Rock County, and the state of Wisconsin. It is because of the hard work, determination and coordination by all involved that the Janesville plant made it this far and was in the running until this point. We are committed to helping the working people of Rock County during this time and we will continue to work together, with the Governor and with others to do all we can to help the people of Rock County through this difficult transition. The Janesville, Beloit, and Kenosha communities are facing a lot of challenges because of the downturn in the auto industry and we will continue to work to help these cities as they seek to access the federal resources that are available to auto communities to respond to these challenges.”

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UPDATED Friday, June 26, 2009 --- 8:45 a.m.

Statement of Governor Doyle Regarding GM Decision

MADISON – Governor Jim Doyle today made the following statement regarding the GM decision:

“I am deeply disappointed by GM’s decision not to reopen the Janesville plant. Because GM in recent bankruptcy proceedings announced closing seven plants in Michigan and the Orion plant was in current operation, we knew it would be an uphill battle. With the help of the City of Janesville and Rock County, the State of Wisconsin offered a very strong package.

“I do not believe that Michigan matched us. I certainly hope that we were not used to simply leverage more resources for Michigan. This has been a very difficult year for Janesville since GM first announced the plant closing last June. We will continue to work hard with the great GM employees to help them land on their feet.”

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UPDATED Thursday, June 25, 2009 --- 6:25 p.m.

DETROIT (AP) -- A person briefed on the decision says Michigan has won the high-stakes competition with Wisconsin and Tennessee to build General Motors' next-generation subcompact car.

The person spoke on condition of anonymity because the plan hasn't been made public but says the announcement will come tomorrow.

GM says the car will be built at a retooled midsize car factory in Orion Township near Pontiac. That will save about 1,200 jobs at the factory, which had been slated to shut down later this year.

Also considered were the Janesville plant in southern Wisconsin and the Spring Hill plant in Tennessee.

The Janesville plant shut down SUV production last December, putting about 1,200 people out of work. It closed entirely after completing some contract work in April.

Wisconsin Governor Jim Doyle isn't commenting on the move yet.

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UPDATED Thursday, June 25, 2009 --- 3:28 p.m.

DETROIT (AP) -- A person briefed on the decision says General Motors will build its new subcompact car at a factory in Orion Township, Mich.

The person says the automaker is scheduled to announce the move Friday. The person did not want to be identified because the plan has not been made public.

GM spokeswoman Sherrie Childers Arb declined to comment.

The Orion plant was competing with factories in Spring Hill, Tenn., and Janesville, Wis., for the tiny car.

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UPDATED Wednesday, June 18, 2009 --- 1:28 p.m.

NASHVILLE, Tenn. (AP) -- Tennessee officials have submitted their bid to General Motors to try to persuade the company to choose its Spring Hill plant over two other finalists for the production of a new small car.

A spokesman for Gov. Phil Bredesen confirmed the proposal has been made, but declined to give any details.

Bredesen had previously made critical remarks about the bankrupt automaker's demands for upfront payments from states in return for selecting among plants that are scheduled to go on standby later this year or are already closed.

GM has said it is moving production of the new subcompact car from Asia to either Spring Hill, Janesville, Wis., or Orion Township, Mich.

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UPDATED Wednesday, June 17, 2009 --- 10:27 a.m.

LANSING, Mich. (AP) -- Michigan wants to prove that General Motors Corp. can profitably build small cars in the United States.

Gov. Jennifer Granholm told reporters Wednesday that the state is "being as aggressive as we have ever been" to land the roughly 1,200 jobs that would come with producing small cars for the automaker.

GM is considering moving production of a new subcompact car from Asia to plants in Orion Township, Mich., Spring Hill, Tenn., or Janesville, Wis. The plants are scheduled to go on standby later this year or are already closed.

Granholm says Michigan is going to show that the car can be built "in a competitive fashion."

Michigan lawmakers expect GM will announce a decision by the end of June or early July.

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UPDATED Tuesday, June 16, 2009 --- 10:48 p.m.

JANESVILLE, Wis. (AP) -- Governor Jim Doyle personally submitted Wisconsin's proposal Tuesday to General Motors Corp. to reopen its Janesville factory.

No details about the state's proposal will be released because of the nature of the negotiations, according to Zach Brandon, executive assistant at the state Commerce Department.

Doyle's communications director Carol Andrews confirmed that Doyle presented the bid but declined to comment further. GM spokeswoman Sherrie Arb wouldn't confirm who took part.

(Copyright 2009 by The Associated Press. All Rights Reserved.)
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UPDATED Tuesday, June 16, 2009 --- 5:00 p.m.

JANESVILLE, Wis. (AP) -- Wisconsin has submitted its proposal to General Motors Corp. to reopen its Janesville factory to make the company's new small car.

Carla Vigue, a spokeswoman for Gov. Jim Doyle in Madison, said the bid went in Tuesday but no details were immediately available.

GM already has closed its Janesville factory while its factories in Orion Township, Mich., and Spring Hill, Tenn., will go on standby later this year.

Tennessee Gov. Phil Bredesen has expressed doubt about whether his state can afford the hundreds of millions of dollars GM apparently wants to bring new production to his state's plant.

Michigan Gov. Jennifer Granholm has said she was determined to land the GM jobs producing up to 160,000 small cars a year and would be aggressive in going about it.

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UPDATED Thursday, June 11, 2009 --- 5:25 p.m.

NASHVILLE, Tenn. (AP) -- Gov. Phil Bredesen is expressing doubt that Tennessee can afford the financial demands from General Motors to select its Spring Hill plant to build a new small car.

The Democratic governor said Thursday that it became clear in meetings with GM officials this week that the automaker wants a large cash payment from Tennessee to pick Spring Hill. The other sites competing for the work are in Orion, Mich., and Janesville, Wis.

Tennessee's incentive packages are usually tilted toward long-term tax incentives, training and infrastructure improvements. Bredesen says the state doesn't have "a lot of spare money available to make large upfront payments."

The governor wouldn't specify how much money GM was asking for, but said that hundreds of millions of dollars would be "the low end of the range."

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UPDATED Thursday, June 11, 2009 --- 5:00 p.m.

The Janesville GM plant may get a second chance after being shut down for more than six months. And it has brought hope to many in Rock County and our state.

"Janesville, WI is being chosen as one of three finalists for this new product," Said Janesville U.S. Congressman Paul Ryan in a press conference Wednesday.

The news spread fast, and along with it hope for many in Rock County.

"The fact is that the community and the people there have been so dedicated that we're hoping we made the case that Janesville should be the choice," added U.S. Senator Russ Feingold.

After being shut down in December of last year, the GM plant in Janesville may get a new lease. The bankrupt auto company has announced that it has narrowed down the production of its new line, the Chevy Spark, to three existing plants. Janesville, and two others in Michigan and Tennessee.

"The effort to diversify our economy is not a new thing and it is something we will continue to do whether GM chooses Janesville for this small car platform or not," stated Forward Janesville President John Beckord.

Since the plant closed, taking many other supply companies with it, Janesville has hit some tough economic times. But things are getting better. Unemployment has dropped to 12.8 percent from a high of more than 15 a few months ago. And Beckord says, that with their available industrial space and educated workforce, they're getting a lot of interest from companies looking to relocate or expand.

"We don't know that we are going to get his product and there maybe more disappointment ahead if we are not chosen so it's a double edged sword," said Beckord.

"They haven't run the numbers comparing the different facilities against one another yet because they don't have the data to do that yet," admitted Congressman Ryan.

And as they compile the data, three cities, including one in our area that could use a boost, will be hoping for the best.

The city had already discussed plans on what to do with the plant itself. They considered dividing it up and selling off the sections individually. But, those plans have now been put on hold.

The final decision on which plant will get the new line is expected to be made before the end of the month.

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UPDATED Wednesday, June 10, 2009 --- 3:10 p.m.

WASHINGTON (AP) -- Four members of Wisconsin's congressional delegation say they made a strong case to persuade General Motors Corp. officials to reopen their Janesville plant.

The lawmakers met Wednesday with GM North American division head Troy Clarke and vice president of manufacturing Tim Lee.

Afterward the delegation members released a statement saying they used the meeting to emphasize the strength and determination of Rock County workers.

They say they made clear that Janesville workers are eager and ready to help GM retool itself for its upcoming line of subcompact cars.

The Congress members were U.S. Sens. Herb Kohl and Russ Feingold and U.S. Reps Tammy Baldwin and Paul Ryan.

GM has narrowed its options for the small-car factory to Janesville, Michigan and Tennessee.

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UPDATED Wednesday, June 10, 2009 --- 2:50 p.m.

Joint Statement of Senators Kohl and Feingold and Representatives Ryan and Baldwin On their Meeting with GM Executives Today

WASHINGTON, DC – Today, U.S. Senators Herb Kohl and Russ Feingold and Representatives Tammy Baldwin and Paul Ryan met with executives from General Motors (GM) to discuss the GM facility in Janesville. The delegation members met with Troy Clarke, Head of GM’s North American Division, and Tim Lee, Vice President of Manufacturing for General Motors. Last week it was announced that the Janesville plant was one of three GM facilities under consideration for retooling to make small cars. Following the meeting, the delegation members jointly released the following statement:

“During our meeting with the executives from GM, we reiterated the strength and determination of Wisconsin’s workforce in Rock County. We made it clear that workers in Janesville are eager and well prepared to help GM retool itself with this new line of small, more fuel-efficient cars. We appreciated the opportunity to speak directly to the executives and we will continue to work together to do all we can on behalf of Rock County and workers throughout Wisconsin.”

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UPDATED Wednesday, June 10, 2009 --- 1:05 p.m.

DETROIT (AP) -- General Motors Corp. has narrowed down the locations where it could build its new small car to factories in either Michigan, Tennessee or Wisconsin.

The automaker says it is in talks with federal and state officials in those states about selection criteria.

GM is considering plants in Orion Township, Mich., Spring Hill, Tenn., or Janesville, Wis., as possible sites. Those Michigan and Tennessee factories are set to end production this fall but will remain on "standby," meaning workers can be called back if the company needs to increase production.

The Wisconsin plant shut down in April.

GM originally planned to build a new small car in China. Last month it said it would build it in the U.S. as a union concession.

GM has been operating under Chapter 11 bankruptcy protection since last week.

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UPDATED Tuesday, June 9, 2009 --- 5:45 p.m.

WASHINGTON (AP) -- Four members of Wisconsin's congressional delegation plan to meet with General Motors Corp. executives to discuss the possibility of reopening GM's Janesville plant.

U.S. Sens. Herb Kohl and Russ Feingold and U.S. Reps. Tammy Baldwin and Paul Ryan will meet with the executives Wednesday afternoon.

GM said last week it's planning a new subcompact vehicle to compete with foreign models, and pledged to build it in the U.S. The automaker's options for production includes plants in Janesville, Spring Hill, Tenn. and Orion Township, Mich.

Representing GM at the meeting will be Troy Clarke, who's the head of its North American division, and Tim Lee, its vice president of manufacturing.

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UPDATED: Saturday, June 6, 2009 --- 4:00 p.m.
REPORTER: Chris Woodard

With one sale dozens of Madison jobs are saved.

It's not the kind of news you hear often in the auto industry these days but at Saturn of Madison the fear is now gone.

On a busy Saturday the average oil change just became a lot more meaningful.

Employee John Hodel says, "Absolutely relief and I've been doing it for so long I can't hardly think of doing anything else to be honest with you."

Until Friday Hodel was worried, worried about starting over, providing for his family, worried about losing his job. That all changed with the announcement that Penske Automotive will buy Saturn from GM.

Saturn of Madison General Manager Bill Schmitz says, "I was pretty positive all along it would happen but until it came to closure this weekend you can't do the happy dance until that happens."

There may not be any definite answers about the future but one thing these 42 employees know is that right now their jobs are safe.

The sale to Penske will keep 350 dealerships open and save 13-thousand jobs nationwide.

Schmitz says, "It's great news that this happened for all our employees, all their families. Certainly there was some uncertainty, never wanted to mislead somebody on what was going to happen."

Whether pushing papers or cranking spark plugs those fears are now in the rear view mirror. This group is looking to the future with a little extra get up and go.

Hodel says, "I've been here for 20 plus years and this is the first time anything like this has come along. Sounds like I'll have a place to retire to now."

There's no word on how much Penske will pay GM for Saturn but they expect to close the deal in the third quarter.

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UPDATED Friday, June 5, 2009 --- 3:50 p.m.

NEW YORK (AP) -- General Motors Corp. strikes a tentative deal to sell its Saturn brand to former race car driver and auto dealer Roger Penske.

Penske, who owns the Penske Automotive Group dealership chain, told reporters on Friday that he plans to offer all 350 Saturn dealerships new franchise agreements. He says Saturn's 13,000 employees will stay on with the company for at least the immediate future.

He declined to name the price for the deal.

Penske says GM will continue to produce Saturn vehicles, though he is in discussions with manufacturers worldwide about building the vehicles going forward.

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UPDATED Monday, June 1, 2009 -- 9:31 p.m.
Posted By: Barclay Pollak

So what happens to GM now that they've filed for chapter 11?

According to a local expert hopefully a speedy recovery.

Jim Seward, a professor at the UW's School of Business, says under chapter 11 the auto maker will undergo a court supervised restructuring.

He expects GM will emerge a smaller, leaner company.

He also thinks it should happen pretty fast considering GM did what's known as a pre-packaged bankruptcy.

" All of the discussions and negotiations over the last few weeks have been designed to try and minimize the amount of time that General Motors spends in bankruptcy. So according to the script, if all goes well 60-to-90 days."

Seward also says filing for chapter 11 is costly and it creates a lot of uncertainty in consumers minds.

Those are just two more reasons he expects GM to move through the process quickly.

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UPDATED Monday, June 1, 2009 -- 9:30 p.m.
Posted By: Barclay Pollak

Governor Doyle announced that GM's Janesville plant is not on the list of facilities the auto maker will sell off during it's bankruptcy.

And he didn't stop there.

Not only will the plant not be sold, but there's a chance it could reopen.

Monday, at Ballweg Chevrolet in Middleton, Governor Doyle announced the Janesville plant could produce GM vehicles once again.

With state officials and Local UAW representatives by his side Governor Doyle announced there may still be life at GM's Janesville Plant.

" We still have hope and the opportunity to compete for jobs and manufacturing cars in Janesville."

According to Doyle he spoke with officials from the car manufacturer Sunday.

They told him the Janesville plant is one of three sites they're considering for production of a new, smaller car.

" I don't want to get everybody's hopes up here too much. But this was what we were hoping -- where we would be today."

Doyle doesn't know when GM plans on making a decision.

State lawmakers and others close to the situation were glad to hear the news.

" We're on the right side of this bankruptcy. My heart goes out to the workers at those 14-other facilities that aren't going to be in the situation that we are in ."

" A weight has been lifted."

Jason Brickl, Vice President of the Ballweg Automotive Group, says they're glad the Chapter 11 bankruptcy filing was made and they look forward to moving on.

" We're moving forward with the new company and we're excited to do that."

Doyle also announced the Chrysler engine plant in Kenosha may get a new lease on life as well.

Last month the automaker announced its plans to shut down the plant.

But, that's changed.

This leaves the door open for European auto manufacturer Fiat, to come in and buy it.

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UPDATED Monday June 1, 2009 -- 4:21 p.m.

Gov. Jim Doyle says he's excited that hopes remain alive for auto manufacturing to return to Janesville and stay in Kenosha.

Doyle says Janesville is one of three finalists to build a new line of small cars for General Motors.

He says he will work to convince GM executives the plant is the right spot to build the cars.

Meanwhile, Doyle says the bankruptcy agreement approved Monday for Chrysler LLC does not require the company to sell the Kenosha engine plant it plans to close. Doyle says that means the company's new owner will have a chance to keep it open.

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UPDATED Monday June 1, 2009 -- 3:05 p.m.

Governor Doyle Statement on General Motors Developments

MADISON – Governor Doyle today issued the following statement regarding recent General Motors developments that might affect the Janesville plant:

“Today we are learning more about the bankruptcy of General Motors and about the potential effects on Wisconsin , especially on the workers in Janesville . We all understand how important auto manufacturing is to the overall economy of Wisconsin , including the auto suppliers and dealerships.

“Since GM announced about a year ago that it would be closing the Janesville plant by 2010, I have been working to save these jobs. I named a local leadership team, including co-chairs Brad Dutcher of the UAW and Janesville school board member Tim Cullen, and Assembly Speaker Mike Sheridan, to make sure we left no stone unturned as we continued our fight for good jobs and the health of the community.

“My staff, this leadership team and I have continually been working at the highest levels, including the White House, to fight for Janesville .

“I spoke with GM executives over the weekend and have learned the plant at Janesville will not be sold as a part of the bankruptcy, meaning that we do have hope and can compete for jobs manufacturing cars.

“This morning GM publicly confirmed that the Janesville plant has been placed on standby and is one of three plants being considered to manufacture small cars at some point.

“Everything we have been fighting for over the past year is to get us to this point. We are in a positive position, and we are going to compete very aggressively for everything moving forward.

“GM knows the talent and dedication of the people of Janesville and all of Wisconsin . Over the years the company has demonstrated its pride in the Janesville plant.

“Now it looks like we have an opportunity to restore that confidence and pride with our workers turning out the high quality products that only Wisconsin workers can.”

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UPDATED Monday, June 1, 2009---11:21 a.m.

WASHINGTON (AP) -- President Barack Obama is defending the government's intervention in the auto industry, saying the collapse of GM and Chrysler would have been devastating for the economy and American workers.

Obama said his policies will help both General Motors Corp. and Chrysler LLC -- storied companies in America's industrial history -- survive after restructuring and bankruptcy. He said his administration had no choice but to intervene, putting the government in "the unwelcome position" of having a financial stake in the companies.

Obama said that GM's move into bankruptcy proceedings will actually improve its situation, calling the move a"viable, achievable plan." He said the new plan will allow GM to start growing for the first time in three years.

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UPDATED Monday, June 1st, 2009--8:37 am

DETROIT (AP) -- General Motors Corp. says it will permanently close nine more plants and idle three others to trim production and labor costs under bankruptcy protection.

Assembly plants in Pontiac, Mich., and Wilmington, Del., will close this year, while plants in Spring Hill, Tenn., and Orion, Mich., will shut down production but remain on standby.

Powertrain plants in Livonia, Flint and Ypsilanti Township, Mich. will close next year, along with plants in Parma, Ohio, and Fredericksburg, Va.

Stamping plants in Indianapolis and Mansfield, Ohio, also will close. A stamping plant in Pontiac, Mich., will be idled but remain in a standby capacity.

GM says it will also close service and parts warehouses in Boston, Jacksonville, Fla., and Columbus, Ohio, by the end of this year.

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UPDATED Monday, June 1st, 2009 --- 7:35 a.m.

NEW YORK (AP) -- General Motors has filed for bankruptcy protection as part of an Obama administration plan to shrink the automaker to a sustainable size and give a majority ownership stake to the federal government.

The fallen icon of American industrial filed its Chapter 11 petition in New York on Monday morning. It marks the fourth-largest bankruptcy in U.S. history and the largest for an industrial company.

GM's reorganization plan will rely on up to $30 billion of additional financial assistance from the Treasury Department. That's on top of the $19.4 billion in taxpayer money GM already has received in the form of low-interest loans.

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UPDATED Sunday, May 31, 2009 --- 10:45 p.m.

WASHINGTON (AP) — General Motors, the humbled auto giant, will file for bankruptcy protection on Monday.

The deal will give taxpayers a 60-percent ownership stake and expand the government's reach into big business.

President Barack Obama plans to announce his support for GM's restructuring strategy at a midday appearance at the White House, much as he did in April when Chrysler sought court protection. GM will follow with a press conference in New York.

Administration officials say the federal government will pump $30 billion dollars into GM as it makes its way through bankruptcy court. That's on top of the $20 billion in taxpayers' money that the Treasury has already lent to the automaker.

The officials, speaking on condition of anonymity in advance of Obama's public remarks, said the administration expects the court process to last 60 to 90 days. If successful, GM will emerge as a leaner company with a smaller work force, fewer plants and a trimmed dealership force.

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UPDATED Sunday, May 31, 2009 --- 3:00 p.m.

DETROIT (AP) -- There's no comment from General Motors or the Treasury Department on a decision by GM bondholders that will smooth the way for the company's reorganization.

As GM makes final preparations for tomorrow's expected announcement that it's filing for bankruptcy protection, bondholders have accepted a deal that was sweetened a bit since they rejected an earlier proposal.

A statement from a group of large bondholders says more than half are agreeing to exchange their unsecured bonds for a 10 percent stake in a newly restructured company. They'd also get warrants to purchase a greater share later on.

The Treasury Department, which has been guiding GM toward a rescue plan that will give taxpayers a more-than 70 percent stake in the company, has to find that there is sufficient acceptance of the deal in order for it to move forward.

By lining up support in advance of a bankruptcy protection filing, GM may find it easier to get a judge to apply terms of the offer to the rest of its unsecured debt.

GM has already received about $20 billion in government loans. It could get $30 billion more to make it through what's expected to be a 60-to-90-day reorganization in bankruptcy court.

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UPDATED Sunday, May 31, 2009 --- 6:05 a.m.

DETROIT (AP) — The General Motors bankruptcy filing is thought to be almost inevitable but the automaker has yet to confirm it ahead of a scheduled news conference tomorrow.

GM's board of directors met for a second day yesterday to make the final decision, but the outcome of that meeting could not immediately be determined.

Bondholders also had a 5 p.m. deadline yesterday to accept a debt for equity deal to allow GM to restructure outside Chapter 11. It's unclear how many may have accepted the Treasury Department offer.

One expert says getting as many bondholders as possible to sign on could help GM get through the court process more quickly.

Over at Chrysler, it's a waiting game. A judge is expected to issue a decision Monday allowing Chrysler to sell most of itself to a group led by Fiat. That could speed Chrysler's exit from bankruptcy.

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UPDATED Friday, May 29, 2009 --- 1:55 p.m.

DETROIT (AP) -- Members of the United Auto Workers union have ratified a package of concessions designed to reduce General Motors Corp.'s labor costs.

UAW President Ron Gettelfinger said Friday that 74 percent of GM's 54,000 U.S. production and skilled-trade workers voted in favor of the deal.

The vote comes before an expected Chapter 11 bankruptcy protection filing by GM on Monday. Bankruptcy experts say having the labor agreement in place will help move the process through court more quickly.

The contract freezes wages, ends bonuses, eliminates noncompetitive work rules and ends the possibility of a strike until the next contract expires in 2015.

It also gives a union-run retiree health care trust 17.5 percent ownership of a post-bankruptcy protection GM, with a warrant to buy another 2.5 percent.

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UPDATED Friday, May 29, 2009 --- 9:10 a.m.

DETROIT (AP) -- General Motors Corp. is confirming that it plans to build a new small car in the U.S. at an idled factory.

The company said in a news release Friday that the retooled factory will be able to build 160,000 small and compact cars per year. GM says it hasn't identified which plant it will use.

GM had said in documents submitted to Congress earlier this year that it planned to import small cars from China. But United Auto Workers President Ron Gettelfinger told The Associated Press on Thursday that GM agreed not to import Chinese-made subcompact cars to the U.S. as part of its concession deal with the union.

GM is expected to file for bankruptcy protection Monday, when it also will identify 14 factories it plans to close as part of its restructuring.

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UPDATED Thursday, May 28, 2009 --- 10:50 a.m.

From Bloomberg.com:
May 28 (Bloomberg) -- General Motors Corp., which celebrated its 100th anniversary last year, plans to file for Chapter 11 bankruptcy protection June 1 and seek a sale of most of its assets to a newly formed company, people familiar with the plan said.

The automaker will be provided with financing by the U.S. Treasury while it seeks the sale of its assets to the new company, which will be formed by the government, according to regulatory filings made by the Detroit-based company today.

Click HERE to read article on Bloomberg.com

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UPDATED Thursday, May 28, 2009 --- 9:15 a.m.

DETROIT (AP) -- General Motors Corp. says a committee of bondholders has agreed to a sweetened deal to erase some of the automaker's debt in exchange for company stock.

The company said in a statement Thursday that it offered bondholders 10 percent of the company's stock with warrants to buy up to 15 percent if they agree to support selling the company's assets to a new company under bankruptcy court protection.

The company made the disclosure in a filing with the U.S. Securities and Exchange Commission.

The filing says if the bondholders didn't agree to support the sale, then the amount of stock and warrants they get would be reduced or eliminated.

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UPDATED Thursday, May 28, 2009 --- 8:40 a.m.

By TOM KRISHER
AP Auto Writer

DETROIT (AP) -- A person briefed on General Motors Corp.'s plans says the company on Monday will identify the 14 factories it will close as it heads toward an a likely Chapter 11 bankruptcy protection filing.

The person says United Auto Workers officials in Detroit have told plant-level union leaders that the company will make the announcement, not the union. The person did not want to be identified because the plan has not been made public.

GM spokeswoman Sherri Childers Arb would not comment on Thursday.

GM has said it soon will identify factories to be closed under its restructuring plan. About 21,000 jobs will be lost.

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UPDATED Friday, May 15, 2009 --- 11:15 a.m.

NOTE:
Johnson Sales in Arlington received a letter today that GM will not renew its contract when it expires. Johnson Sales is a third generation dealer and well known in its community. Owner Greg Johnson tells NBC15's Leigh Mills they will continue to sell farm equipment, ATVs and steel lawn and garden items. They are not going out of business.

NEW YORK (AP) -- General Motors is telling about 1,100 dealers their franchises will be terminated late next year.

GM's action Friday comes just a day after crosstown rival Chrysler announced it will drop 789 of its roughly 3,200 dealerships. Both companies have too many dealerships for too few sales and are slashing costs as they restructure.

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UPDATED Friday, May 15, 2009 --- 10:15 a.m.

DETROIT (AP) -- General Motors Corp. dealers across the nation are awaiting word from the company on whether they will be fired.

GM says it will notify 1,100 U.S. dealers on Friday that their franchise agreements will not be renewed.

Dealers expect to hear either by telephone or FedEx letters that will begin arriving in the morning.

The company says it has too many dealerships for too few sales and must make the cuts as part of its government-ordered restructuring plan.

The cuts come a day after Chrysler LLC told a quarter of its dealers that their services are no longer needed.

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UPDATED Tuesday, April 28, 2009 --- 8:30 p.m.

By NBC15's Chris Woodard:

Tonight, another punch to the gut of the auto industry, major cuts at GM that could have a big effect on customers and communities right here in our area.

Worries about lost jobs and closed service centers are dominating conversation.

An industry dominated by bad news lately is getting more of the same and this time it's striking close to home no matter where you live.

GM dealerships that pop up on corners across Southern Wisconsin and provide valuable revenue and jobs for communities across our area suddenly have a very uncertain future.

Jason Brickl with Ballweg Chevrolet says, "I was as surprised as everyone else."

In an effort to turn the company around General Motors is planning to shut down almost half its dealerships and right now no one is in the clear.

Ballweg says, "It was a tough day for all of us in particular our organization."

At Ballweg Chevrolet in Middleton they're staying optimistic but the worries about job losses are tough to ignore and with the Pontiac brand being eliminated completely this is uncharted territory.

For a lot of customers the biggest concern is, what if I already have a Pontiac? But dealers say they'll continue to service these vehicles as long as they stay open.

It's good news for customers and Pontiac diehards like Garry Johnson who have their concerns.

He says, "I was pretty dumbfounded really. I mean I couldn't believe that they were going to drop the Pontiac line."

Brickl says in the last 48 hours GM has promised him they'll follow through for people like Johnson with parts warranties and service on Pontiac's for the foreseeable future.

But one thing they can't guarantee are jobs, or a future for local dealerships. They're waiting anxiously to find out where they stand.

Right now dealerships say it's too early to tell how GM will decide which dealerships they plan to shut down but they're expecting to find out where they stand sometime next month.

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UPDATED Monday, April 27, 2009 --- 7:30 a.m.

By TOM KRISHER and KIMBERLY S. JOHNSON
AP Auto Writers

DETROIT (AP) -- General Motors says it will cut 21,000 U.S. factory jobs by next year and phase out its storied Pontiac brand as part of a major restructuring effort needed to get more government aid.

The struggling automaker also says it will offer 225 shares of common stock for every $1,000 in notes held by bondholders as part of debt-for-equity swap.

The annoucements came in a filing Monday with the Securities and Exchange Commission.

GM is living on $15.4 billion in government loans and faces a June 1 deadline to restructure and get more government money. If the restructuring doesn't satisfy the government, the company could go into bankruptcy protection.

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UPDATED Monday, April 27, 2009 --- 7:10 a.m.

DETROIT(AP) -- General Motors says it will announce details of its restructuring plan Monday ahead of making an offer to bondholders to exchange debt for equity.

The struggling automaker is expected to outline the fate of several of its brands and is likely to announce further cuts to comply with government restructuring demands.

The company says the 9 a.m. EDT news conference will include Chief Executive Fritz Henderson and other officials. GM is expected to announce that it will scrap its Pontiac brand and may offer details of planned factory closures.

General Motors Corp. is living on $15.4 billion in government loans and faces a government-imposed June 1 deadline to restructure or go into bankruptcy protection.

One of the people briefed on the plan said GM will accelerate many cuts previously planned for 2014 to instead take place between now and 2010, although specifics were not available.

GM is expected to list specific numbers of blue-collar job cuts, and announce another round of U.S. salaried job cuts beyond the 3,400 completed last week.

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UPDATED Thursday, April 23, 2009 --- 3:50 p.m.

JANESVILLE, Wis. (AP) -- The last vehicle has rolled off the line at the Janesville General Motors plant, the oldest in the GM family.

Production of GM vehicles ended just before Christmas, cutting 1,200 jobs. But the plant remained open as about 110 employees finished an order of trucks for Isuzu Motors Ltd.

That order was completed Thursday morning. GM spokesman Christopher Lee says about 50 workers have been laid off, while the rest will remain to help guide the plant's shutdown.

It's not immediately clear what will become of the plant. GM could demolish the building and sell the land, or collaborate on developing businesses or parks.

The plant was built in 1918. It was made for tractor production and converted to a Chevrolet plant five years later.

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UPDATED Sunday, April 19, 2009 --- 1:20 p.m.

JANESVILLE, Wis. (AP) -- Production at the General Motors plant in Janesville is scheduled to end for good this week.

GM spokesman Christopher Lee says operations at the southern Wisconsin plant will cease Thursday.

About 1,200 employees were let go just before Christmas when GM ended SUV production at the plant.

Some 100 workers were retained to finish an order of small- to medium-duty trucks for Isuzu Motors Ltd.

Lee says most of those workers will be laid off Thursday. He says others will be kept on to help guide the plant's shutdown.

GM's long-term future remains in doubt. Chief Executive Fritz Henderson says the automaker may file for bankruptcy if it can't meet the strict requirements that came with $13.4 billion in government loans.

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UPDATED Monday, March 30, 2009 --- 4:20 p.m.

President Barack Obama says the federal government may offer more help to GM and Chrysler. But, what does that mean for local dealers?

"I can not promise you there will not be more difficulty to come," said the President to the auto companies.

Fresh off the forced resignation of GM CEO Rick Wagoner, President Obama spoke Monday morning directly to the auto companies.

"But, what I can promise you is this, I will fight for you," he added.

The president said he wants GM and Chrysler to make more concessions before he'll give them additional tax dollars. But, in the meantime they will help by offering credit to lenders, buying government cars with stimulus money, and giving tax breaks to consumers who buy a new car this year. He also announced another program that will help ease concerns about Bankruptcy.

"Starting today the U.S. government will stand behind your warranty."

"It's been huge," stated Phil Bouland with Russ Darrow Chrysler/Jeep in Madison.

According to Bouland, with employee pricing, rebates, and zero percent APR financing, much of which came about through the first bailout, they are selling more cars.

And earlier Monday, Chrysler announced even more good news. Their deal with Fiat to merge has gone through.

Said Bouland, "In reality it puts them light years ahead of most manufacturers because they don't have to start from the ground up with product development. Fiat, with the new emissions and everything going on required for the government, Fiat is already there."

Ensuring that Chrysler and their local dealers will be there as well, in the years to come.

The president also spoke about using parts of the economic stimulus package to fund a "Generous Credit" program that would reward car owners for trading in older, less fuel-efficient cars and buying new, cleaner ones.

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UPDATED Monday, March 30, 2009 --- 4:20 p.m.

NEW YORK (AP) -- When General Motors Chairman and CEO Rick Wagoner leaves the automaker, he'll take with him a financial package worth an estimated $23 million.

The terms of General Motors Corp.'s government loans prevent it from giving executives severance pay, but they don't affect earned pensions.

As of Dec. 31, Wagoner's accumulated pension was valued at $22.1 million, but he'll receive that in payments over the rest of his life, so the actual amount he collects might be different.

According to GM's latest annual report, Wagoner also will receive about $367,000 in stock awards and about $535,000 in deferred compensation.

Wagoner announced his resignation Monday. Obama administration officials asked him to step aside as part of the government's plan to assist the struggling automaker.

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UPDATED Monday, March 30, 2009 --- 10:30 a.m.

WASHINGTON (AP) -- President Barack Obama says the federal government is preparing to offer several incentives to get Americans to buy more U.S.-made cars.

In a White House speech, Obama said the IRS will start notifying consumers who purchased cars after Feb. 16 that they can deduct the cost of any sales and excise taxes. The program would remain in effect till year's end.

Obama says he wants to work with Congress to use parts of the economic stimulus package to fund a program that would allow consumers to get a "generous credit" when they replace an older, less fuel-efficient car and buy a new, cleaner car.

The president says he wants to make the program retroactive starting Monday. It's meant to boost car sales in the U.S., which have seen their worst decline in 27 years.

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UPDATED Monday, March 30, 2009 --- 5:05 a.m.

DETROIT (AP) — General Motors Chairman and CEO Rick Wagoner is out at the request of the White House.

Come August and the annual meeting, new directors will make up the majority of GM's board in a major management shake-up.

The action comes as the Obama administration finds neither GM nor Chrysler is viable. It's giving the automakers one last chance to convince Washington they deserve bailout money.

Two people familiar with the plan Obama will announce Monday say the administration would give GM enough aid to restructure over the next 60 days, while Chrysler will get up to $6 billion and 30 days to complete an alliance with Italian automaker Fiat.

Auto industry analysts credit Wagoner with doing more to restructure the giant automaker than any other executive.

GM cannot make severance payments to Wagoner or other senior executives under the terms of its government loans. It said in its annual report last month that Wagoner is eligible to retire under GM's salaried employee and executive retirement plans, but the amount he would receive is unclear.

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UPDATED Sunday, March 29, 2009 --- 5:20 p.m.

WASHINGTON (AP) — Administration officials say General Motors' CEO Rick Wagoner is stepping down immediately at the request of the White House.

GM and Chrysler are surviving on $17.4 billion in government loans. They have been hard hit by the economic downturn and the worst decline in auto sales in 27 years. GM is seeking $16.6 billion more; Chrysler wants $5 billion more.

President Barack Obama is set to announce a plan tomorrow for the government to provide more money to the ailing auto industry in exchange for tough concessions from union workers, bondholders and others.

Obama tells CBS' "Face the Nation," that all those with a stake in the automakers' survival need to take more hard steps to help them restructure for the future. He says "They're not there yet."

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UPDATED Sunday, March 29, 2009 --- 4:25 p.m.

BY TOM KRISHER
AP Auto Writer

DETROIT (AP) — A person with knowledge of General Motors' plans says Rick Wagoner will step down immediately as chairman and chief executive of the struggling Detroit automaker.

The person asked not to be identified because Wagoner's plans have not been formally announced.

The move comes on the eve of President Obama unveiling his plan to reinvigorate the U.S. auto industry. Obama and other administration officials have said they would demand deeper restructuring from General Motors Corp. and Chrysler LLC before they would get any more government loans.

Both companies are living on a total of $17.4 billion in federal aid.

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UPDATED Wednesday, February 25, 2009 --- 1:00 p.m.

Press Release from the United Way of North Rock County:

Gerald Kinderman of Janesville, Wisconsin is the lucky winner of the last Janesville-built Tahoe. The grand prize winning ticket in the LIVE UNITED Raffle was drawn at the United Way of North Rock County Annual Meeting on Wednesday, February 25, 2009.

The raffle raised $201,100 for United Way, which provides funding to 80 local programs benefiting the residents of north Rock County. The number of tickets sold were 11,250.

Thirty-five total prizes were awarded in the raffle. Prize winners are:

Grand Prize, Chevrolet Tahoe LTZ:
Gerald Kinderman of Janesville, WI

Second Prize, Ultimate Harley-Davidson Package:
Jeannie Randles of Janesville, WI

Third Prize, Premium Ready-to-Assemble Backyard Wooden Swing Set: Walt Kueng of Edgerton, WI

Fourth – Ninth Prizes, 42” Philips LCD Television:
1) UAW Region #4 of Lincolnshire, IL
2) UAW Region #4 of Lincolnshire, IL
3) Roy Smith of Niota, TN
4) Mary Weber of Janesville, WI
5) David Krapf of Janesville, WI
6) Casey Ohm of Oregon, WI

Tenth – Seventeenth Prizes, 32” Philips LCD Televisions:
1) Sandy Zimmerman of Janesville, WI
2) Jaynie Wilkins of Fitchburg, WI
3) UAW Region #4 of Lincolnshire, IL
4) TP McGinnis of Roscoe, IL
5) Lee Marklein of Janesville, WI
6) Craig Kjendle of Milton, WI
7) UAW Region #4 of Lincolnshire, IL

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UPDATED Tuesday, February 3, 2009 --- 4:00 p.m.

NEW YORK (AP) -- General Motors Corp. says it will offer buyouts to all of its hourly employees as the troubled automaker continues to slash costs.

GM spokesman Tony Sapienza says the buyouts will mainly target GM's 22,000 retirement-eligible hourly employees, though any union employee can take the offer.

GM employees were notified of the buyouts on Tuesday. Sapienza says the offer will consist of a car voucher and a one-time cash payment. He says employees will receive more specific details on Friday, and says the offer will be less generous than previous buyouts.

He says employees will have until March 24 to make a decision. The buyouts will be complete by April 1.

Detroit-based GM is scheduled to report January auto sales later Tuesday.

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UPDATED Thursday, January 29, 2009 --- 12:30 p.m.

NEW YORK (AP) -- General Motors Corp. says its "jobs bank" program will end Monday.

The program gives union workers at the Detroit automakers most of their pay and benefits while they are laid off.

The jobs bank was the target of much ire during the companies' requests for a federal bailout. The program's elimination was one of the conditions the government set when it agreed to lend GM $13.4 billion.

GM spokesman Tony Sapienza said Wednesday that the 1,600 GM workers in the jobs bank will be placed on layoff and will need to file for unemployment. They'll receive about 72 percent of their salaries, which will be paid for by state unemployment benefits and GM subsidies.

The length of time workers can receive the benefits varies from state to state but usually amounts to about 48 weeks.

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UPDATED Tuesday, December 23, 2008 --- 8:00 a.m.

JANESVILLE, Wis. (AP) -- The last sport utility vehicle to be assembled at General Motors' plant in Janesville has rolled off the line.

Work on the 2009 Chevy Tahoe LTZ ended before 7:30 a.m. Tuesday.

But the Janesville Gazette reports workers' union contract requires them to be at the plant for at least four hours, so most won't be leaving until about 10 a.m.

Managers plan to spend part of the next few hours talking to employees, many of whom have worked at the plant for decades.

The closing of GM's SUV production eliminates 1,200 jobs.

A skeleton crew will remain at the plant to finish off a small joint venture producing trucks for Isuzu.

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UPDATED Tuesday, December 23, 2008 --- 8:15 a.m.

JANESVILLE, Wis. (AP) -- The 1,200 people losing jobs when General Motors ends SUV production tomorrow won't be alone.

Suppliers that served the Janesville factory and either have shut down or are in the process will raise the total to about 2,000 newly unemployed workers in the area.

Lear Corporation ended its regular production in Janesville last Thursday. A small staff stayed on through tomorrow. About 20 are expected to stay for another two or three months to break down operations.

Lear had notified the state it would be laying off 371 workers. LSI and its sister company, Flint Special Services, which have staged materials for the GM assembly line, told the state they would close their Janesville operations, laying off 187.

At the GM plant, the end of SUV production means the elimination of more than 1,200 jobs. Only about 50 workers will stay on to build Isuzu trucks through May.

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UPDATED Saturday, December 13, 2008 --- 3:25 p.m.

JANESVILLE, Wis. (AP) — The last General Motors sport utility vehicle will roll off the assembly line in Janesville two days before Christmas, but the hard times caused by the plant's closing have already begun.

Business is down at least 20 percent at Prime Time Pizza, where two shifts of GM workers once ordered up to 40 pizzas a day.

The Just in Time for Kids Child Care Center, which catered to GM workers, is closing Dec. 31.

And the Fagan Chevrolet-Cadillac dealership is cutting back on advertising, inventory and workers. President Bob Clapper says sales have dropped from a high of 2,000 vehicles per year to 800 this year through October.

Clapper says GM "was the town," and everyone worked there or was related to someone who did.

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UPDATED Wednesday, December 10, 2008 --- 11:20 a.m.

JANESVILLE, Wis. (AP) -- The last vehicle that rolls off the General Motors assembly line in Janesville later this month will be raffled off for charity.

The plant is slated to close Dec. 23 following slumping sales of the full-size SUVs built there.

Officials say the Chevrolet Tahoe LTZ will be donated to the United Way of North Rock County, which will give it away as the top prize in a February raffle.

GM Janesville and union officials say it's an opportunity to give back to the community.

Raffle tickets cost $20 each or six for $100.

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UPDATED Thursday, December 4, 2008 --- 5:00 p.m.
Reporter: Chris Papst

Next week the U.S. Senate will vote on whether to bail out the big three automakers. But no matter what happens, many just want it to end, so consumers quit worrying and start buying.

Said Phil Bouland with the Russ Darrow Group, "Detroit's problems are America's problems. It has been the perfect storm. It started with the mortgage crises and the lending and things like that. And right now it has trickled down."

CEOs from the big three auto makers were back on Capital Hill Thursday pleading for billions of your tax dollars.

"We don't know that the outcome of this is going to be," said Congressman Paul Ryan.

Congressman Ryan, whose district contains the Janesville GM plant, supports the bailout. But only if the money comes from the energy department and not the treasury.

"I think the best pathway for the big three auto makers is to take the money set aside for them at the energy department and if that can pass the senate, which is unclear right now, if that can happen, then it will come through the house and go into law," he said.

"Americans have to start purchasing American vehicles," added Bouland.

Dealerships across the country are full of inventory as consumers are hesitant to buy. But should they be?

"They are concerned when they come in and sometimes they have questions on what might happen," stated Bouland. "Is my car going to be covered under warranty? Who is going to take care of me if one of the manufacturers goes out of business?"

Even if one of the big three goes out of business, Bouland says warranties will not be affected. But many potential buyers just don't want to take that chance, which Bouland says is a big mistake.

"There has never been a better time to purchase a new vehicle. Pricing, incentives, it is a super time to get a new vehicle."

Bouland says that if the bailout is passed part of the money will be used for extra costumer incentives. He says under the plan an extra $3,000 rebate would be tacked onto every car purchase.

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Bloomberg.com is reporting: General Motors Corp. and Chrysler LLC executives are considering accepting a pre-arranged bankruptcy as the last-resort price of getting a multibillion-dollar government bailout, said a person familiar with their internal discussions.

Click HERE for report from Bloomberg

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UPDATED Tuesday, December 2, 2008 --- 3:00 p.m.

WASHINGTON (AP) -- General Motors says it needs $4 billion in government loans this month and a total of $12 billion by late March to keep operating. The troubled automaker says it plans to slash its numbers of workers, vehicle brands and plants by 2012.

Altogether, the auto giant is seeking up to $18 billion in government funding -- including a $6 billion line of credit in case market conditions worsen.

General Motors Corp. would focus on 4 brands -- Chevrolet, GMC, Buick and Cadillac. By 2012, the plan calls for 20,000 to 30,000 fewer workers, a reduction of nine facilities and 1,750 fewer dealers.

GM CEO Rick Wagoner is offering to work for a dollar a year and top executives will take major pay cuts.

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UPDATED Monday, October 13, 2008 --- 3:45 p.m.

Senator Barack Obama released the following statement today regarding the General Motors plant in Janesville:

“For generations, the General Motors plant in Janesville has provided families with good-paying jobs and helped sustain this proud Wisconsin community. Now the plant is shutting down earlier than expected, creating new uncertainty and new challenges for thousands of workers and their families. We need to finally make good on Washington’s promise to partner with the auto industry to make it more competitive. As President, I will work with automakers to build the fuel-efficient cars of tomorrow so that, instead of closing plants, we can create new jobs and lift up hardworking families in cities like Janesville.”

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Governor Doyle Statement on General Motors Decision

MADISON – Governor Doyle today issued the following statement regarding General Motors’ announcement to cease operations at the Janesville plant at the end of the year:

“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.

“The State of Wisconsin is committed to providing the resources necessary to help the Janesville community with services and assistance to workers and their families.”

Governor Doyle encourages all affected workers to contact the Rock County Job Center at 608-741-3400, or the Job Center nearest them, to inquire about services. To find the Job Center nearest them, they can visit www.wisconsinjobcenter.org/directory or toll free at 888-258-9966.

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POSTED Monday, October 13, 2008 --- 8:00 a.m.

DETROIT (AP) -- General Motors Corp. says it will close its Janesville, Wis., sport utility vehicle factory on Dec. 23, earlier than the company had expected.

The factory employs 1,200 workers and makes the GMC Yukon, Chevrolet Tahoe and Chevrolet Suburban SUVs.

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.

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.

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UPDATED: Saturday, October 11, 2008 --- 5:15 p.m.

General Motors remains tight-lipped about the fate of its plant in Janesville.

But reports last night said the automaker would make an announcement early next week, saying it would shut down production in Janesville by January.

That's much earlier than the 2010 scheduled closing announced in June.

Now, reports say G-M and Chrysler have been trying to work out a merger deal that would combine two of Detroit's "Big Three" automakers.

However, the Wall Street Journal reports those talks have been suspended due to the worsening economy.

A source tells the New York Times there is about a 50-percent chance a deal would be reached.

Reports of this early closure are turning bad news to worse for plant employees who already thought they may lose their jobs, just not this soon.

While this is obviously devastating for GM employees, it could hurt a lot more people than that.

It's a quiet Saturday at Janesville's GM plant, a silence that may soon become all too familiar.

Laid off GM employee Rhonda Trickel says, "This morning when I picked up the paper and it said it's official, I'm like oh my goodness. I mean I was shocked."

Reports that the plant will stop vehicle production by the end of this year and close entirely in January, a year earlier than expected, are delivering a crushing blow.

After 8 years, Rhonda Trickel was laid off in June but was hoping to get her job back.

She says, "I had a big hope that something would come following and maybe we'd get another product. It shoots a lot of hope and I don't think it's going to happen. I really don't. I really don't."

Employees say they've been told they have a mandatory meeting Monday where they expect to get official word about the early closure. But some employees who didn't want to be shown on camera also tell me, they're not surprised.

Trickel says, "People just had the feeling, a gut feeling that all along it was going to happen before 2010. We all prayed that it wouldn't but..."

For the city an early plant closure means a lot more than just lost jobs.

City Council Member Russ Steeber says, "It's going to kind of hit the city right in the gut."

A big hit to an already slumping economy is expected, but for city officials that have worked hard to keep the plant open, no news is still good news.

Steeber says, "I'm going to sound like a starry eyed optimist but I think there's still possibilities out there, to what degree I don't really know. Without getting official notice from GM one would always hope there's some life left here."

The most realistic hope for more life at the plant is probably to make a different vehicle. City and state officials say they're still in negotiations to try to bring another GM product line to the plant.

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UPDATED Saturday, October 11, 2008 --- 6:45 p.m.
UPDATED Saturday, October 11, 2008 --- 5:55 a.m.

ARLINGTON, Va. (AP) --- Sen. John McCain says he's disappointed to hear about the upcoming closure of General Motors plants, which may include the site at Janesville.

His campaign released a statement Saturday saying hardworking people are paying the price because the country's leaders have put corruption and greed before Main Street's interests.

He says he supported loan guarantees to the auto industry, and will continue to encourage American car companies to build the car of the 21st century.

GM announced in June that by 2010 it would idle the Janesville plant and three others making SUVs and trucks.

The company is expected to announce Monday that the Janesville plant might now shut down by the end of the year, idling 1,600 workers.

* * * *

MILWAUKEE (AP) --- The news Friday night that General Motors is expected to speed up its plan to stop production at Janesville brought a comment from Democratic presidential candidate Barack Obama who stopped at the plant there while campaigning earlier in the year.

"Reports that the GM plant I visited in Janesville may shut down sooner than expected are a painful reminder of the tough economic times facing working families across this country," Obama said in a statement released by his Wisconsin campaign organization.

"This news is also a reminder that Washington needs to finally live up to its promise to help our automakers compete in our global economy. As president, I will lead an effort to retool plants like the GM facility in Janesville so we can build the fuel-efficient cars of tomorrow and create good-paying jobs in Wisconsin and all across America."

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UPDATED - Saturday, October 11, 2008 --- 12:15 p.m.

A statement received from 1st District Congressman Paul Ryan:

WASHINGTON – Wisconsin’s First District Congressman Paul Ryan released the following statement regarding General Motors’ intention to discontinue production of their current product at the Janesville Assembly Plant:

“This is obviously disappointing news, but not surprising given the drop-off of sales of sports utility vehicles. I’m encouraged that GM is willing to continue a duologue with state, local, and union leaders, who have offered a comprehensive incentives package to GM to bring another product to the plant.

It is also critical to note that this news applies to the current product at the plant, not the future of the plant itself. Local leaders have worked tirelessly to secure the best deal possible for Janesville workers, and I will continue to advocate on their behalf."

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UPDATED Friday, October 10, 2008 --- 9:30 p.m.

There's word General Motors will shut down the Janesville GM plant at the end of this year, much earlier than expected.

NBC15 News just got off the phone with Senator Herb Kohl's office.

A spokesperson says GM broke that news to them today.

However, a company spokesperson contacted by NBC15 says the automaker has nothing to announce, and when they do, they will tell the 1200 employees still working at the Janesville plant first.

Congresswoman Tammy Baldwin says in an e-mail tonight she expects
the workers will be notified Monday.

You'll remember GM told Janesville workers early this summer the
company would close the plant by 2010 or sooner because of sagging auto

The company's stock price reached its lowest price today in 58 years.

Wisconsin lawmakers have already offered GM tax breaks to keep the
plant open.

Governor Doyle issued a statement after that news came out this evening.

He says quote - "We worked together and delivered a package that General Motors is still seriously considering. We are still hopeful that in the midst of the current financial crisis, we can convince General Motors that Janesville is ideally suited for a new product line. I have received assurances from General Motors that any announcement is not a response to the incentive package we delivered to them last month and that they will continue to consider our package."

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UPDATED Friday, October 10, 2008 --- 9:10 p.m.

Statement of U.S. Senator Russ Feingold on GM's Plan to end production in Janesville - received Friday at 9:00 p.m.

"While the news today is disappointing, I will continue to work with Governor Doyle, Representative Ryan, the Congressional delegation, and local leaders to support the strong incentive package that the hard-working employees of GM Janesville, the local community, and the state presented to GM last month.

I know GM was impressed with the work of the Janesville GM Retention Task Force in crafting the package and is currently reviewing the Janesville proposal. I will continue to do all I can to help the people of Janesville through this difficult transition."

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UPDATED Friday, October 10, 2008 --- 8:55 p.m.

Statement of Congresswoman Tammy Baldwin on the GM Janesville Plant - received Friday at 8:55 p.m.

"I have been briefed about an announcement GM is expected to make on Monday after meeting with employees at the Janesville plant.

While I cannot comment on the specifics prior to Monday, I can say that this announcement of a specific date on which production on the current lines of vehicles will cease is a setback for the Janesville GM workers, their families and the entire Rock County community.

The loss of these jobs will compound the financial strain that families are already facing. While I am mindful of the challenges that GM faces, I remain hopeful that they will continue to work with us and ultimately accept the very strong package of incentives offered to them to remain in Janesville producing new product lines. This package, coupled with the recent assistance package approved by Congress will permit GM to retool domestic plants to keep these important jobs here at home."

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UPDATED Friday, October 10, 2008 --- 8:45 p.m.

This report appeared on the Wisconsin State Journal/Online as of 8:45 p.m. Friday:

General Motors will end vehicle production at its Janesville plant by the end of this year and close the facility entirely in January, a spokesman for Sen. Herb Kohl said late Friday.

Joseph Trahern, GM's director of legislative and regulatory affairs, informed Kohl's office of the closure date Friday, said Rohit Mahajan, a Kohl spokesman.

Mahajan said Trahern told the office the Janesville employees would be notified Friday.

Both a GM spokesman and an official of United Auto Workers Local 95 in Janesville deny that the company has made any further statement about the Janesville factory's future, and Gov. Jim Doyle said Friday the possibility of a new product for the plant is still alive.

"We have nothing to announce at this point in time," said GM's Chris Lee. "When we have something to announce, we'll tell our employees first."

UAW vice president Steve Kerl said there was no meeting with employees on Friday.

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UPDATED Friday, October 10, 2008 --- 8:15 p.m.

JANESVILLE, Wis. (AP) --- A possible speedup in the shutdown plans for General Motors' Janesville plant prompted Sen. Herb Kohl to issue a statement calling it a "dark day" for the community and the U.S. economy.

But there's no confirmation from GM on when the Janesville plant will halt production of the sports utility vehicles made there. Gov. Jim Doyle and Congressman Paul Ryan said GM hasn't ruled out a proposal to make other vehicles in Janesville.

GM announced in June it would idle the Janesville plant and three others by 2010. Then last week GM said one of the four, in Moraine, Ohio, would close Dec. 23.

The Associated Press learned Friday that the company is likely to announce further cuts, including an acceleration in the plant-closing plans, as early as next week amid slumping sales and a collapse in its stock price.

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UPDATED: Friday, October 10, 2008 --- 7:12 p.m.

The Associated Press is reporting that GM could soon announce production cuts. While details have NOT been made public, Governor Doyle issued this statement Friday night:

Statement from Gov. Doyle:

“On June 3rd, General Motors announced they were closing the Janesville plant because soaring gas prices deflated demand for the sport utility vehicles produced there. Since that time, we joined forces with the local union, businesses, community leaders and our Congressional Delegation to convince General Motors to rethink their decision and continue production at the Janesville plant.

“We worked together and delivered a package that General Motors is still seriously considering. We are still hopeful that in the midst of the current financial crisis, we can convince General Motors that Janesville is ideally suited for a new product line. I have received assurances from General Motors that any announcement is not a response to the incentive package we delivered to them last month and that they will continue to consider our package.

“I will continue to fight for the General Motors’ workers and provide the resources necessary to help the Janesville community as the Department of Workforce Development and the Department of Commerce continue their work to provide services and assistance to the workers and their families.

“It is my understanding that General Motors has a policy to first talk to their workers before publicly announcing news regarding plant closings.”

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Posted Friday, October 10, 2008 --- 6:38 p.m.

DETROIT (AP) -- General Motors Corp. is likely to announce further production cuts and possible plant closures as early as next week as it deals with slumping sales and a collapse in its stock price, a person with knowledge of the company's plans said Friday.

The person, who did not want to be identified because the plans are not finalized, said the cuts likely will hit engine, transmission and stamping operations to correspond with a June announcement that GM would close four truck and sport utility vehicle assembly plants.

The closures of those assembly plants likely will be accelerated, the person said. GM announced last week that its Moraine, Ohio, SUV factory will close Dec. 23, and it has said it will idle assembly factories in Oshawa, Ontario; Toluca, Mexico; and Janesville, Wis., by 2010.

Chairman and CEO Rick Wagoner said last month that GM would have to make adjustments, particularly in metal stamping factories.

Further cuts could shore up GM's share price, which lost nearly half its value this week, plunging to the lowest level in 59 years. The shares fell 31 percent to $4.76 Thursday and dropped to $4 in the first minutes of trading Friday, the lowest level since Nov. 16, 1949, according to the Center for Research in Security Prices at the University of Chicago. They rebounded to end six straight losing sessions and close at $4.89, up 13 cents, or 2.7 percent.

Industry analysts say closing factories or cutting shifts will help GM reduce costs and preserve cash at a critical time with the company losing billions and burning up cash at an alarming rate.

GM had $21 billion in cash and $5 billion available through credit lines at the end of June for total liquidity of $26 billion but has been burning up cash at a pace of more than $1 billion a month.

The company announced a plan in July that calls for cutting $10 billion in costs and raising another $5 billion through asset sales and borrowing through 2009.

Mark Warnsman, an auto analyst with Calyon Securities, said further production cuts are consistent with what GM and other automakers have been doing all year - cutting factory capacity to match lower sales.

"I think it's a positive sign that GM is biting the bullet," he said. "For GM going forward, they're going to have to use everything available to them."

So far this year, GM's U.S. sales have sank with the overall market. Through September, GM sold 18 percent fewer vehicles than it did in the same period last year. U.S. auto sales overall are down 13 percent through September, and J.D. Power and Associates on Thursday reduced its projections to 13.6 million this year and 13.2 million in 2009, down from 16.1 million units in 2007.

Rumors and fear of cuts have been circulating through GM factories for months, especially those that make parts for trucks.

"Everybody's a little bit concerned, I'm sure they are," said Bob Allard, who helps to build four-speed automatic truck transmissions at GM's Willow Run facility, about 35 miles west of Detroit.

GM is relying more and more on six-speed transmissions to make its trucks more fuel-efficient, and industry analysts have said plants making four-speeds are vulnerable. Also vulnerable are those making large V-8 engines for trucks, as well as plants that stamp out truck parts.

GM has been shifting its truck-heavy lineup to satisfy a market leaning toward smaller, more fuel-efficient vehicles. The company has increased production of small and midsize cars, plans to start building the new compact Chevrolet Cruze in 2010, and is building a new plant in Flint, Mich., to make four-cylinder engines for the Cruze and the Chevrolet Volt electric car.

Last month, Wagoner would not say if more factories will be closed or if GM would merely reduce shifts or assembly line speeds. But analysts and automakers have said it's not efficient to run factories on only one shift, which GM is doing in many locations.

Warnsman said he would not be surprised if there are further plant closures.

"It's tough to be surprised by anything in the present market," he said. "I think we're at a point here where we're talking about cutting off limbs to save the body."

There's little hope for an immediate U.S. sales rebound.

The Edmunds.com automotive Web site on Friday predicted October sales will be worse than September, which was the worst month in 15 years. Traffic on the Edmunds site, which it says correlates strongly with actual sales, shows a 20 percent decline in the first week of October compared with the first week of September.

GM's shares dropped 31 percent Thursday, fueled by a statement from Standard & Poor's Ratings Services, which said the "rapidly weakening state" of the global automotive market could push GM's credit further into junk status, making it even tougher to borrow money.

GM said in a statement Friday that while it faces "unprecedented challenges" related to the ongoing problems in the financial markets and weakening economies across the globe, it still doesn't consider bankruptcy protection as an option.

"Bankruptcy would not be in the interests of our employees, stockholders, suppliers or customers, and we believe speculation about a possible filing is exaggerated and unconstructive," GM said.

The bankruptcy talk and market conditions are disconcerting to the 1,600 workers at GM's Toledo, Ohio, transmission factory, said Ray Wood, president of the United Auto Workers local there.

Although his plant makes a six-speed truck transmission and is scheduled to get a six-speed car gearbox, Wood says GM recently shut down a four-speed truck transmission line and laid off 190 workers.

"What we're trying to do is just try to weather this storm, try to do everything within our power that we keep General Motors' head above water," Wood said. "The things that are out of your control are the things that give you the most concern."

He hopes the laid-off workers will be called back as the new car transmission comes on line and sales improve.

"I have faith in the American dream," he said. "I have faith in America and our ingenuity. I believe that we'll get through this."

Latest Comments

Posted by: Penny Location: Madison on Jul 17, 2009 at 10:15 AM

xuawmember, you hit it right on the head! Thank you.
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Posted by: XUAWMEMBER Location: Madison on Jul 14, 2009 at 10:15 AM

Hey Matt, you don't have a clue what you are talking about!Blame the U.A.W? The car companys will never drop their prices no matter what they pay their workers. You and your wife must be pulling down at least $60k a year.... and you can't afford a new vehicle payment? Why don't you try to live within your means, get rid of your credit cards,giant house payment that you can't afford,and then you might be able to buy a new vehicle. Blaming your problems on the wages of the auto workers is ignorent!Why don't you drop YOUR wages so that people dont have to pay $80 dollars an hour to get their vehicles fixed???Think that your dealership will drop their service charge prices if YOU take pay concessions? NOT!!! Works both ways!
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Posted by: Matt Location: Southwest WI on Jul 13, 2009 at 11:19 AM

Cry Cry Cry and Josh are exactly right. I believe the UAW is 100% to blame here. Of course, Generous motors was stupid to keep complying with there demands, so that is their fault. I heard the number for benefits that GM pays out on TV yesterday. They pay benefits to over 10 times as many people as they have employees. No company can survive this way. Also, GM and the rest of the big 3 are stupid enough to think their sales problem is with quality. Wake up. The problem is price. My wife and I both have good jobs. She is a dental assistant and I am a mechanic. We are a typical middle class family. Yet, a new car is not in our budget, and it probably never will be. Unless, one of us gets a job with GM that is. If they want to sell cars and trucks, all they need to do is get rid of the UAW and replace them with people willing to work for a decent wage. I will work for $20 bucks and hour Then drop the prices about 25%. Sit back and watch the vehicles fly off the dealer lot.
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