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.

Copyright 2008 by The Associated Press. All Rights Reserved.

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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.

Copyright 2008 The Associated Press.

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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."

Copyright 2008 The Associated Press.

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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.

Copyright 2008 The Associated Press.

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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."