28 July 2009

GM to build small car at idled Michigan plant

The capitol of car making, Michigan snatched back a few of its fast-disappearing auto jobs, winning a heavy competition with two other states to build General Motors Corp.’s next-generation subcompact car.

The news comes as a boost for Michigan’s economy, which has seen unemployment hit 14.1%.

GM will keep 1,200 jobs at the retooled midsize car factory in Orion Township about 40 miles north of Detroit.

The Orion plant now makes the Pontiac G6 and Chevrolet Malibu midsize cars, but GM is discontinuing the Pontiac brand, and the company also makes the Malibu at factory in Kansas City, Kan. Orion was going to go on standby status later this year.

Idled plants in Spring Hill, Tenn., and Janesville, Wis., were also under consideration.

Michigan has lost nearly half its manufacturing jobs since they hit a peak in mid-2000, or more than 450,000 positions. At least half a million workers already are collecting unemployment benefits in the state. So holding onto at least some of the GM jobs it thought it was losing is a major victory.

For related information, go to www.isa.org/productivity.