Spring Hill loses out on bid to build GM small car

Spring Hill loses out on bid to build GM small car

DETROIT (WATE/AP) -- General Motors Corp. confirmed Friday it will use an idled assembly plant in Orion Township, Mich., and a parts stamping facility in Pontiac, Mich., to build small and compact cars, instead of its plant in Spring Hill, Tennessee.

GM confirmed the plant selection in a statement Friday, but said the decision is dependent on the outcome of negotiations between the company and the state on incentives.

Tennessee Gov. Phil Bredesen released this statement on the selection:

"I received a call from Troy Clarke this morning confirming their decision to produce GM's new sub-compact car in Michigan. While I was obviously disappointed at the news, I was encouraged that he confirmed that the company views the plant in Spring Hill as a very good facility that is likely to be an important part of GM's manufacturing strategy in the years ahead. During our conversation Mr. Clarke said that ultimately the Michigan incentive package was too good to ignore. I understand and accept his decision and offer my congratulations to Michigan and Gov. Granholm.

The Spring Hill plant is a very attractive factory with highly productive and skilled workers. Recent investments of more than $800 million have made this one of the most technologically advanced plants in the nation, and I'm confident it will be a part of GM's future.

We're now shifting our focus to helping the employees and families that will be affected by this decision. We've already begun working to develop training and assistance programs that will help Spring Hill workers affected by this decision and help them transition when assembly operations end this fall.

I am glad that GM will continue to have a presence in Tennessee and will continue to employ Tennessee workers. I hope that will grow over time as GM takes the necessary steps to stabilize itself and regain a path for long-term sustainability. General Motors is, and will continue to be, an important part of Tennessee.  We will support them and their employees in every way we reasonably can."

The Orion plant also beat out a plant in Janesville, Wis., for the work.

GM says the Orion assembly plant is expected to be retooled and run on two shifts, building 160,000 vehicles annually.

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