General Motors Shutting Down Portion Of Saturn Plant In Spring Hill

Wamp Says Enterprise South Still On Track For Major Plant

  • Monday, November 21, 2005

General Motors announced Monday it will be cutting 30,000 jobs and closing nine facilities, including part of the Saturn Manufacturing Plant in Spring Hill, Tn.

The Spring Hill Plant/Line No. 1 will cease operations by the end of 2006. The Saturn facility opened in 1990, and currently employs approximately 5,700 employees.

Only one of the two assembly lines at the Spring Hill Saturn plant will be closed, with a loss of about 1,500 jobs, said General Motors spokesman Dan Flores. Production of the Ion compact car will be moved, but the Vue SUV will continue to be built at the Spring Hill plant.

Rep. Zach Wamp said the news is not a blow to efforts to recruit a major manufacturer to the Enterprise South Industrial Park.

He said Chattanooga is better than ever positioned to attract "a manufacturer of the future automobile that will be an alternative vehicle using new fuel sources."

He said the city's "niche" is for an innovative manufacturer using new technology that goes away from reliance on foreign petroleum.

Rep. Wamp said high energy costs in the U.S. are a major factor in numerous plant closings. "Energy costs are killing us," he said.

Rep. Wamp said there needs to be a push to develop alternative energy sources and again utilize the nuclear option.

He also called for a lessening of environmental restrictions on energy production and removal of "excessive regulation."

He said 33 new chemical plants are being built, but only one in the U.S. - mainly because of high energy costs. He said Dow planned a new plant in Texas, but decided to go overseas instead.

State Republican Party Chairman Bob Davis said, "Gov. Bredesen’s touting of Nissan’s move to Middle Tennessee may be good for the governor’s public relations machine, but continued plant closings and cutbacks are a true reflection of the governor’s lack of work on economic development in Tennessee.

“There is no need for Phil Bredesen to pat himself on the back for the Nissan move. Where has he been for the last three years on an economic development plan? Plants are closing or cutting back - people are hurting; the Nissan announcement was good, but it is only a band-aide on the state’s economic problems.

”The latest unemployment numbers in the state rose in October, while the national average fell. Companies across the state have recently announced plant closings."

A total of nine GM assembly, stamping and powertrain facilities and three Service and Parts Operations facilities will cease operations. A total of 30,000 manufacturing positions will be eliminated from 2005 through 2008.

“The decisions we are announcing today were very difficult to reach because of their impact on our employees and the communities where we live and work," GM Chairman and CEO Rick Wagoner said. "But these actions are necessary for GM to get its costs in line with our major global competitors. In short, they are an essential part of our plan to return our North American operations to profitability as soon as possible.”

The following six assembly plant sites will be affected in the years indicated:
• Oklahoma City, Okla., will cease production in early 2006.
• Lansing, Mich., Craft Centre will cease production in mid-2006.
• Spring Hill, Tn., Plant/Line No. 1, will cease production at the end of 2006.
• Doraville, Ga., will cease production at the end of its current products' lifecycle in 2008.
• The third shift will be removed at Oshawa Car Plant No. 1, in Ontario, Canada, in the second half of 2006. Subsequently, Oshawa Car Plant No. 2 will cease production after the current product runs out in 2008.
• The third shift will be removed at Moraine, Ohio, during 2006, with timing to be based on market demand.
Capacity-related actions affecting stamping, Service & Parts Operations and powertrain facilities include:
• The Lansing, Mich., Metal Center will cease production in 2006.
• The Pittsburgh, Pa., Metal Center will cease production in 2007.
• The Parts Distribution Center in Portland, Ore., will cease operations in 2006; the Parts Distribution Center in St. Louis, Mo., will cease warehousing activities and will be converted to a collision center facility in 2006; the Parts Processing Center in Ypsilanti, Mich., will cease operations in 2007. One additional Parts Processing Center, to be announced at a later date, will also cease operations in 2007.
• The competitiveness of all unitizing (packaging) operations at the Pontiac, Drayton Plains, and Ypsilanti Processing Centers in Michigan, as well as portions of the unitizing operations at the Flint, Mich., Processing Center will be evaluated in accordance with the provisions of the GM-UAW national agreement.
• St. Catharines Ontario Street West powertrain components facility in Ontario, Canada, will cease production in 2008.
• The Flint, Mich., North 3800 engine facility ("Factory 36") will cease production in 2008.

Given the demographics of GM's workforce, the company plans to achieve much of the job reduction via attrition and early retirement programs, said company officials.

The additional actions will reduce GMNA assembly capacity by about 1 million units by the end of 2008, in addition to the previously implemented reduction of 1 million units between 2002 and 2005. Factoring in the additional capacity from GM's new Delta Township facility in Lansing, Mich., slated to begin production next year, the overall net result will be a GMNA assembly capacity of 4.2 million units.

Breaking News
New Hope Fire Department Disputes TWRA Report On Kayaker Rescues
  • 3/28/2024

New Hope Fire Department Corey Comstock disputed a report by the Tennessee Wildlife Resources Agency about the rescue of 33 kayakers from extremely high winds near Nickajack Cave on Monday. ... more

Woman Dies After Being Seriously Injured In House Fire Thursday Afternoon
Woman Dies After Being Seriously Injured In House Fire Thursday Afternoon
  • 3/28/2024

A woman died after sustaining life-threatening injuries in a house fire on North Moore Road Thursday afternoon and was rescued by Chattanooga firefighters. Hamilton County 911 received a call ... more

Motorcyclist Hit Speeds Of 170 MPH; Posted Video Of Outrunning Police
Motorcyclist Hit Speeds Of 170 MPH; Posted Video Of Outrunning Police
  • 3/28/2024

A motorcyclist fled on Sunday, from a Hamilton County Sheriff’s Office deputy attempting to make a lawful stop on Highway 27. Since that time, the deputy has been working leads to identify the ... more