Doyle talks up interest in GM

Milwaukee Journal Sentinel
April 25, 2006

Janesville - General Motors' top manufacturing executive heard a pitch Monday from Gov. Jim Doyle and local plant and union leaders.

At a meeting in Detroit, Doyle expressed thanks that the Janesville assembly plant, the struggling automaker's oldest factory, was spared when a round of plant closings was announced several months ago.

The meeting produced no major announcement regarding the plant's future, but served as a chance for Doyle to emphasize the state's interest in attracting new investment in Wisconsin several years from now.

"It's important as they make longer-term plans that we're in good communication and they will know how important General Motors is to Wisconsin and hopefully how important Wisconsin is to General Motors," Doyle said.

The meeting was held as the factory reaps the rewards of strong demand for the new full-size sport utility vehicles assembled in Janesville. The plant began its first two overtime shifts on Friday, and those overtime shifts are expected to continue "for the foreseeable future," said plant manager Gary Malkus.

GM's top manufacturing executive, Gary Cowger, provided details on GM's restructuring initiatives and stressed the competitive challenge the company faces because of high health care costs and international trade problems, Doyle said.

Last year, Janesville's 3,700 employees were coping with speculation that the plant might be shut down, as it was not only the oldest plant, but also one producing the least fuel-efficient type of vehicles, full-size SUVs. Now the plant is running overtime shifts, perhaps for the rest of the year, a plant spokeswoman said.

"It's always either feast or famine around here," said Jerry Rasmussen, who has worked at the plant for 29 years.

GM is in the midst of a massive restructuring that includes offering buyouts to employees in Janesville and other plants, restructuring its health care accords with the United Auto Workers, closing plants and other moves.

Malkus said the key for Janesville is to have the local UAW union and plant management continue to work together in a collaborative way. That partnership has been recognized by top GM managers and could help the company attract new investment when the current model of SUVs is redesigned or eliminated.

Given that model designs typically run for five to six years, the Janesville plant will need some kind of new investment from GM within that time frame, and a decision on an investment would have to come well before the last of the current generation of SUVs rolls off the assembly line, Malkus said.

But even with rising gas prices, demand for the new generation of Tahoes, Yukons and Suburbans, at least through March, has been strong. GM's next report on how they're selling will come in early May.

GM invested $175 million in the new production line in Janesville, which also received $7 million in state training and other assistance

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