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GM Looking To Expand Indiana Plant

Manufacturing.Net - June 16, 2009

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FORT WAYNE, Ind. (AP) -- General Motors' plant in Fort Wayne is in the running for a proposed $46 million expansion even as the automaker closes plants as part of its reorganization under federal bankruptcy laws.

GM is seeking a 10-year tax break on $27 million in equipment needed for the expansion, which would "furnish and install machinery, equipment and special tooling necessary to support heavy-duty extended cab truck production," according to papers filed with the Allen County Council. Light-duty Chevrolet Silverado and GMC Sierra pickup trucks already are made at the plant.

The council will meet Thursday to consider the tax break.

Plant spokeswoman Alicia Kocher said approval of incentives "would make the case for this plant stronger" because GM is considering competing proposals from other plants.

The investment would help retain about 50 positions with a combined annual salary of about $2.84 million, but is not expected to create additional jobs, The News-Sentinel reported. The expansion would allow a second shift at the Fort Wayne plant to continue operating, Kocher said.

"A number of pieces still need to fall into place, but this is potentially very good news for Allen County," county Commissioner Nelson Peters said Monday.

GM has invested more than $1 billion in the 2.7 million-square-foot plant in Fort Wayne since it opened in 1986.

United Auto Workers Local 2209 President Orval Plumlee said the possible investment could "guarantee the plant's future for years to come and eventually create jobs in the area."

It wasn't immediately clear if the proposed expansion was related to the announced closure of a pickup truck plant in Pontiac, Mich., one of several GM has announced will close as part of its bankruptcy reorganization.


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Extended cab pickups  6/16/2009 12:00:00 PM
This story misses the important subtext. This story has nothing to do with the consolidation of regular pickup work to Fort Wayne and the closing of Pontiac. The extended cab and HD pickups are currently built in a Flint, MI plant...the same plant that was building the medium-sized truck line that GM discontinued last week. The medium-sized truck line was 22% of that plant's unit volume and 0% of its profit contribution. The extended cab and HD pickups are 78% of its volume and 100% of its profit contribution. If this line leaves Flint and nothing replaces it, that Flint plant would have to close. So, is another product planned for the Flint plant?
re: "extended cab pickups"  6/16/2009 1:29:00 PM
The important part wasn't missed at all. It looks like GM is paying more attention to the bottom line vs. worrying about the jobs of some "faceless folks" in Flint Michigan. I'm not at all concerned about Flint and it's job market- we got our own job market concerns here that are not at all related to the auto industry and the greedy UAW. I used to have some sympathy around the jobs piece, but not now-this is all a result of me being part owner of a company I didn't want in the first place (thanks Obama).
You both miss the point!  6/16/2009 2:31:00 PM
They will be building gas-guzzlers to replace the "Cash for Clunker" gas guzzle...??? Hey wait a darn minute! I thought the plan was to make fuel efficient vehicles. NOT what the public wants or is buying! Now I'm confused Barack. What is "Government Motors" up to?


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