facebooktwitterRSS
- Advertisement -
  • Most Commentedmost commented up
  • Most Emailedmost emailed up
  • Popularmost popular up
- Advertisement -
 

« News Home

GM announces $200 million update for Lordstown



Published: Fri, August 24, 2012 @ 12:01 a.m.

SEE ALSO: Obama, Kasich, others win praise at GM Lordstown

  CRUZE ANNOUNCEMENT

GM’s is investing in tooling and equipment to build the next-generation Chevrolet Cruze, retaining 5,000 jobs between the company’s Lordstown and Parma facilities, where there will be another $20 million invested. GM has already begun to retool the Lordstown factory.
“It’s a great day at Lordstown,” UAW 1112 President Glenn Johnson told those gathered for a 2 p.m. news conference at the union hall. “As leaders we secured the future of this plant for a very long time.”

GM’s is investing in tooling and equipment to build the next-generation Chevrolet Cruze, retaining 5,000 jobs between the company’s Lordstown and Parma facilities, where there will be another $20 million invested. GM has already begun to retool the Lordstown factory. “It’s a great day at Lordstown,” UAW 1112 President Glenn Johnson told those gathered for a 2 p.m. news conference at the union hall. “As leaders we secured the future of this plant for a very long time.”

By BURTON SPEAKMAN AND JAMISON COCKLIN

news@vindy.com

LORDSTOWN

Workers at the General Motors Co. Lordstown plant have job security into the next decade after GM and two local United Auto Workers unions announced a $200 million investment in the Valley factory.

GM is investing in tooling and equipment to build the next-generation Chevrolet Cruze, retaining 5,000 jobs between the company’s Lordstown and Parma plants. An additional $20 million will be invested in Parma.

GM already has begun to retool the Lordstown factory.

“It’s a great day at Lordstown,” UAW Local 1112 President Glenn Johnson told those at a news conference at the union hall.

“As leaders, we secured the future of this plant for a very long time.”

The expectation is that this agreement will keep the

Lordstown GM complex operating until 2020, said Dave Green, president of UAW 1714.

In the last contract, union members made individual concessions of “$7,000 to $30,000 to make today possible,” he said.

“The majority of the money at Lordstown will go toward facility rearrangement, equipment, machinery and tooling,” GM Manufacturing Manager Arvin Jones told reporters during a conference call Thursday.

Jones said the new model will offer new exterior and interior styling, improved fuel economy and more storage space.

However, the company was short on specifics, deferring most questions to a later date. Production timing of the next-generation Cruze and model variations will be announced later, Jones said.

The current Cruze model was originally scheduled for production by GM through 2014.

“We can’t yet predict what kind of volume the Lordstown facility will do because we just don’t know what the markets will do,” Jones said. “We really don’t want to get into all of that right now.”

Laura Jones, spokeswoman for JobsOhio, said her group was pleased with the announcement, and details had yet to be worked out about possible incentives for GM for building the next-generation Cruze in Lordstown.

“We’re committing to working with GM, and GM is committed to Ohio,” Laura Jones said.

The company did have the option of moving production of the new Cruze to its Springfield, Tenn., facility, she said. GM’s investment saved 4,500 jobs in Lordstown, which equates to $243 million in payroll.

According to Reuters news service, the next-generation Cruze will be the first to use a new global platform for about 2.5 million GM compact sedans and crossovers. The company and union officials did not confirm the platform announcement, however.

GM previously announced plans to reduce the number of vehicle platforms by more than 50 percent in the next decade.

When asked if the Lordstown plant would start to produce any other models or styles of Cruze — such as a hatch-back or station wagon — Green said his hope is the company diversifies the Cruze product.

“We think they will, but we don’t know that 100 percent at this time,” he said.

The new Cruze is a great development for the Valley, Johnson said.

It will provide long-term security not just for workers at the plant, but also for all the companies that make a living supplying the plant or whose industry is supported by the income of plant workers, Green said.

“It took the work of everyone from the floor down to make this happen,” Green said.

A joint statement released by GM, UAW Local 1112 Shop Chairman Ben Strickland and UAW Local 1714 Shop Chairman Will Adams credited the Lordstown Team: “The men and women of Lordstown are working hard to keep the Cruze a top-quality small-car choice. The next-generation of the Cruze is well earned and we are thrilled to be assigned work that will keep good-paying next generation UAW jobs in the state of Ohio for years to come.”

This announcement shows the young people in this area they don’t have to go somewhere else to find a job, said state Rep. Ronald V. Gerberry of Austintown, D-59th.

“I remember being here in ‘78-79 when the steel industry collapsed. There are reasons that Youngstown was recently named the fourth-best place in the nation to find a job,” he said. “[In addition to GM] there is opportunity at V&M Star, there is opportunity at [the Youngstown Business Incubator] with the federal grant that was just announced.”

Retirees Peggy Campbell and Carol Bowers came to the event as a way to support union members.

The new Cruze provides not just security for the current workers but also secures the future of the retirees who came before them, Campbell said.

The Lordstown complex has built more than 14.6 million cars in the 46 years since it opened in April 1966.

The Parma Metal Center shipped 60 million parts while processing more than 1,000 tons of steel in 2011, GM said in a statement.


Comments

1IslandMike(752 comments)posted 2 years ago

GM is ALIVE
BIN LADEN is DEAD

THANK YOU PRESIDENT OBAMA!!!

Suggest removal:

2whitesabbath(738 comments)posted 2 years ago

Good Deal !!!

Suggest removal:

3DwightK(1256 comments)posted 2 years ago

Things really are starting to look up in the Mahoning Valley. This is good news.

Suggest removal:

4natureman(66 comments)posted 2 years ago

This would not be possible without President Obama. People of this valley need to remember when it comes to voting in November. Our president has done a great job under very difficult circumstances. All of our politicians should be held accountable for working together with the president once elected. Best wishes to all who work at Lordstown. This is great news!!!

Suggest removal:

5DOLE2(594 comments)posted 2 years ago

What about Ford? GM would have survived bankruptsy without Obambam

Suggest removal:

6anothermike(211 comments)posted 2 years ago

This is just a terrible announcement, next thing you know, more folks will be purchasing American built cars and disrupting the whole teabag plans for the future. How dare GM decide to kick up production in Lordstown when there is plenty of available land all over Asia to build new factories and eliminate the no-good , taxpaying workers, of the United States........

Suggest removal:

7walter_sobchak(1910 comments)posted 2 years ago

Certainly this is good news for GM-UAW and the area, but there is still an argument to be made that Obama picked the winners and losers in this deal with the govt. bailout. It is about the Rule of Law in the US. Private citizens, either directly or through retirement plans, pension plans, etc., purchased stock and bonds in "Old GM". Then, when the company hit the skids, the administration forces GM into a structured bankruptcy in which unsecured creditors were given preferential treatment over secured creditors. Investment decisions are made with financial analyses that examine a companies balance sheets with the premise that a companies assets are to be used to satisfy creditors in the event of failure. Ford bit the bullet years ago and restructured themselves. GM and Chrysler did not make the tough choices and those bond holders and stock holders were left holding the bag. So much for the Rule of Law.

Suggest removal:

8jimiohoh(86 comments)posted 2 years ago

now everyone go out and buy GM stock lol

Suggest removal:

9IslandMike(752 comments)posted 2 years ago

hunter,

Do you need a tissue?
Bush got us into Fast & Furious
....and Afghanistan
....and Iraq
....and the Recession
....and incresed the national debt.
Come back when you quit crying.

Suggest removal:

10southsidedave(4780 comments)posted 2 years ago

@Islandmike... seems to be out in left field...what has this story got to do with Bin Laden?

Suggest removal:

11IslandMike(752 comments)posted 2 years ago

The story has everything to do with President Obama, if it weren't for Obama there wouldn't be a story. Everyone wants to attack Obama's record and I just told the truth.

Suggest removal:

12rickking123(292 comments)posted 2 years ago

So Island Mike, are you saying that GM wouldn't have survived if it had gone through a normal bankruptcy? Chances are it would have survived, just like many of the airlines that went through bankruptcy also. Giving Obama credit for something he didn't do goes right in line with your myopic view of blaming Bush for everything bad that's happened to this country.

Suggest removal:


News
Opinion
Entertainment
Sports
Marketplace
Classifieds
Records
Discussions
Community
Help
Forms
Neighbors

HomeTerms of UsePrivacy StatementAdvertiseStaff DirectoryHelp
© 2014 Vindy.com. All rights reserved. A service of The Vindicator.
107 Vindicator Square. Youngstown, OH 44503

Phone Main: 330.747.1471 • Interactive Advertising: 330.740.2955 • Classified Advertising: 330.746.6565
Sponsored Links: Vindy Wheels | Vindy Jobs | Vindy Homes | Pittsburgh International Airport