General Motors Corp., planning for its future after leaving bankruptcy, expects to make a decision this month on which idled factory will be reopened to build a new small car.
The selection will be based on "12 objective criteria," Chief Executive Officer Fritz Henderson told reporters today in Washington. Henderson laid out Detroit-based GM's process for picking the plant during a meeting with Michigan's congressional delegation, Democratic Representative Sander Levin said.
GM has said it would choose from among factories in Orion Township, Michigan; Spring Hill, Tennessee; and Janesville, Wisconsin, triggering a push by U.S. lawmakers and civic leaders to lobby for their local assembly operations.
"Which plant wins will depend on which factor is the most important," said Sean McAlinden, a labor analyst at the Center for Automotive Research in Ann Arbor, Michigan. With union flexibility on work rules, the contest is "about wages, logistics, geography. It may come down to which paint shop is the most modern."
The Janesville plant opened in 1919 and was GM's oldest when it was idled in December. The other 2 were among 14 targeted for shutdown this year as GM restructures in Chapter 11. Orion Township opened in 1983 and Spring Hill in 1990.
Preparing Proposals
Michigan, Tennessee and Wisconsin are compiling proposals based on GM's criteria, representatives said. The factories that lose in the competition for building the future small car have no promise of new work.
GM hasn't given a timetable for building the new model, which will be a so-called B-segment car, similar in size to the South Korea-built Chevrolet Aveo, people familiar with the decision have said.
The automaker's site-selection criteria include the cost of investment in the plant, the logistics of transporting parts and vehicles, economic incentives and the local labor agreement, said Sherrie Childers Arb, a spokeswoman.
"We would like the small-car facility to be in Michigan," Levin said. "One of the factors is the amount of state financial help. We're going to do everything we can to maximize the state of Michigan's participation."
The Tennessee and Wisconsin congressional delegations have also met with GM officials to express interest in winning the small-car program.
"We stressed our continued support for GM, our appreciation for keeping portions of the Spring Hill plant open and our desire to have GM continue as part of Tennessee's automotive economy," Tennessee Governor Phil Bredesen said in an e-mailed statement.
Jay Winzenz, the assistant city manager in Janesville, said the new plant is important to the Wisconsin community "from a cultural aspect, not just from an economic one."
