GM Factory Towns Confront A Bleak Future

Suppliers, Local Businesses, Charities - As Well As Laid Off Workers - Affected By Plant Closings

(CBS/AP)  Pontiac. Mansfield. Spring Hill. Orion Township.

All these places once thrived in the shadow of General Motors plants. But now their futures - and their very identities - are in doubt with the automaker's decision to file for bankruptcy and shut down more than a dozen factories.

The closings will cause "a ripple effect, and eventually it's going to ripple ... all over this country," said the Rev. Robert Knox, 53, who worked for GM for 31 years before taking a buyout in 2006. He's now an associate minister at a Baptist church in Pontiac, Mich., where GM will close an assembly plant.

"This city's been affected for years because of plants closing and people moving out, and this is going to affect it more," he said.

General Motors Corp., the once-mighty car giant whose plants were the lifeblood of many American communities, filed its Chapter 11 petition Monday in New York. It was the fourth-largest bankruptcy in U.S. history and the largest for an industrial company.

GM also revealed Monday that it will permanently close nine more plants and idle three others.

"'Why us?' was my first feeling,'" Don Skidmore, an employee at a closing plant told CBS News correspondent Dean Reynolds.

"I really thought with the quality of our plant that it would stay open," Beth Morrow, another worker at the plant told Reynolds.

Worker Creon Mattison put it simply: "I hate us closing. I love my job."

Some of the towns most threatened by GM's woes would not exist without the automaker.

In Spring Hill, Tenn., where an entire community sprouted around the Saturn factory, the plant won't close, but its 2,500 workers will be idled indefinitely, Reynolds reports.

The company has been part of everyday life by contributing to orchestras, community colleges and ballparks.

"It's going to impact in a lot of ways we're not even thinking about," said Skip Allman, executive director the United Way of Richland County, home to an Ohio stamping plant slated to close.

Workers at the plant near Mansfield, Ohio, contributed $200,000 to the United Way a year ago. If that money disappears, some programs could be in jeopardy, including a system for helping soldiers return from overseas if a family member is dying and another program that provides student tutoring.

"It will be horrible," he said. "We're just praying for a miracle."

In nearby Ontario, Ohio, a GM stamping plant that opened in 1956 created an entire community. Once a sleepy village of 700 people, the town grew to 5,500 residents and established a shopping mall, restaurants and one of the best school districts in the state.

"General Motors set the stage," said Ontario Mayor Ken Bender. "It is the catalyst."

Job losses at the 1,200-worker plant in the last year forced the city to cut its budget by about 20 percent. The closing of the plant is likely to force some layoffs, including at the police department, Bender said.

In Pontiac, 27.3 percent of residents live below the poverty line, compared with 13.3 percent nationally, according to the Census Bureau. In March, Michigan Gov. Jennifer Granholm appointed an emergency manager to take over the city's finances after local officials were unable to resolve budget problems including a deficit approaching $12 million.

As GM has become smaller, so has its contribution to the Lighthouse of Oakland County, a nonprofit that provides affordable housing, homeowner assistance and other services. The charity expects corporate support to decline as much 30 percent this year, primarily because of the dwindling fortunes at GM, Chrysler LLC and Ford Motor Co.

Suppliers have been slammed as well. A successful reorganization at GM can't happen fast enough for supplier Mike Aznavorian of Clips and Clamps Industries, which has been whipsawed with shrinking orders from both GM and Chrysler.

"We're expecting to be down 75 percent from our normal sales last year," Aznavorian told Reynolds.

In the last year, the work day at Clips and Clamps has been cut in half. The number of workers has dropped from 60 to 20 and those left have had their pay cut by 20 percent.

Aznavorian says letting people go was traumatic but inevitable.

"When we laid these people off, I want to tell you, not one of them argued. Not one of them thought it was just horrendous that we were doing that," Aznavorian said.

Local businesses also are feeling squeezed.

"I think I'm going to cut down on my employees, downsize everything and try to survive," said Carolyn Arafat, whose family-owned business has sold food to GM workers in Pontiac for two decades and cashed their checks. It's near the assembly plant set to close by October.

With cuts at local plants in recent years, M&K Liquor makes about 15 percent of what it once did, "and now I'm going to lose that 15 percent," she said.

Sam Bazzi, 64, owns a Detroit tailoring shop that gets most of its business from GM employees and others who work with the automaker at its downtown headquarters. If GM were to leave, he would be forced to close as well.

"Because no business, nobody, no traffic. If GM moves out, I don't have a choice."

Delores Jackson, 47, who works at GM's Orion Township plant north of Detroit has logged 24 years with the automaker. She's keeping calm and relying on her faith as her assembly plant prepares to be idled by September.

"You know what? Everything is on the bubble," she said. "So I just take it one day at a time, and I trust the Lord. He put me here. He knew everything that was going to happen when he sent me here, so that's where my trust is at."

GM also said it will idle its assembly plant and its 2,500 workers in Spring Hill, Tenn., where car production began in 1990 with the Saturn - GM's attempt to compete with small Japanese cars. The factory made more than 3.7 million vehicles for the Saturn brand until 2007, when it shut down to retool to make the Chevrolet Traverse SUV.

About 600 employees will remain at Spring Hill, doing stamping, working with polymers and making service parts. Union officials say the Spring Hill facility is also in the running to build a next-generation small car.

"I am concerned for the well-being of all the employees at Spring Hill. I'm concerned about Maury County in general. How will this affect our revenue stream, which is already down $100 million this past month? It's got to hurt," said state Sen. Bill Ketron, a Republican whose district includes Spring Hill.

James Kendall is president of a United Auto Workers local that represents a metal-stamping plant in Indianapolis. The factory had been set to close in December 2011, but Kendall said GM told union officials Monday that the plant could close sooner.

Kendall said the local's members have agreed to significant contract concessions in a bid to keep the plant, which employs about 800 people.

"The people here deserve this facility to stay open, but unfortunately it's not up to us."

Mike Dersa, general manager of a GM dealership outside Detroit was actually relieved by GM's bankruptcy filing.

"We're relieved obviously because General Motors is still here," Dersa told Reynolds.

Dersa's dealership will survive in the new GM world - unlike the 2,600 GM dealers who won't. And he sounds as optimistic as a car salesman can be these days.

Yes we're in bankruptcy. Yes we will come out of this a lot stronger and it's going to be a very short amount of time," Dersa said.

[omega39-2009]

I have a friend that's making a hundred billion, zillion dollars a year holding down a union job and all he has to do is sit around all day and play the kazoo while munching handfuls of skittles and M&Ms...Geez.
Posted by omega39-2009 at 5:23 AM : Jun 2, 2009

Is your friends name Ron Gettelfinger
Posted by golfered2 a

No, he's a parody of every union worker that is personally known by every Regan Conservative.

[golfered2]

I have a friend that's making a hundred billion, zillion dollars a year holding down a union job and all he has to do is sit around all day and play the kazoo while munching handfuls of skittles and M&Ms...Geez.
Posted by omega39-2009 at 5:23 AM : Jun 2, 2009

Is your friends name Ron Gettelfinger

[skyk-2009]

Gee Obama only been office a little over 100 days and looked what has happened.. Thank you skyk for this information...
Posted by vistavermin1 at 5:51 AM : Jun 2, 2009

LOL Yep 4th grade at best! LOL So YOU think we dropped from Number 1 in 1979 to dead last in 2003 in the first 100 days of the Obama Administration? LOL I'll take that back... You didn't even get TO the 4th grade now did you? LOL WOW!!!!

[skyk-2009]

What's a ditto head???

Buy GM!!
Posted by vistavermin1 at 5:47 AM : Jun 2, 2009

Buy GM!! LOL It's really bad when you lack the basic knowledge to even know who or what you are! How long did it take you to get past that 4th grade there? LOL

[Dgunner]

THERE NEVER IS ANY MENTION of the millions of deadbeat parents that pull on the system Not one article not one opinion from any government agency not program to stop the couch cows from droping babies and checking the next box on the welfare papers. The trickle of deadbeat parents in this country has compounded with the slack system of allowing more deadbeats and to breed and hide within the paper work. Yoe people attack the UAW well if there wasn't so many children to feed and clothe and insure and house then the sysytem would not be this screwed up. Admittedly there would still remain a problem. I pray to live to see the day when this problem is addresses with malice. Ii the United States citizens have been feeding thier children and maybe your grandchildren while your off spring ignores thier responsibility for ten years . These deadbeat lice on the backs of American tax payers need to rounded up and forced to labor for this country. They this country ten years labor or until they drop dead which ever come s first. You people aren't getting tough where tough belongs.

[american_11-2009]

You would think the Politicians would be content with just outsourcing all the jobs that can be done offshore but No they want to bring in Slave labor & Welfare votes ( while ignoring Article IV Section IV of our Constitution against invasion, the rule of Law, and their Oath of office) to take the jobs that cannot be outsourced! To add insult to injury they make the American citizens still working pay billions in extra taxes for schooling, provide medical, welfare and jail cells for the invading horde that are taking our jobs and driving down our standard of living! While keeping busy Robbing, Raping and Killing American citizens at an rate that Bin Laden can only dream about!

The Democrats love the millions of Welfare votes to further their Socialist agenda & the Republicans love the slave labor for their Pay Masters in the Chamber of Commerce and business.

[skyk-2009]

Your right about that skyk.. The UAW bleed GM to death..

Don't buy GM.....
Posted by vistavermin1 at 5:44 AM : Jun 2, 2009

Who exactly do YOU think the UAW is? You talk about them like they are some other country or other people. They are AMERICAN'S and THEY produced and created the Middle Class. Like all ditto heads you never address the POINT of my post, is there a reason why? FACT!! Since the war on Unions in this nation our standard of living has DROPPED from number ONE to dead last in the G-7!

[skyk-2009]

I see Obama bumber stickers on foreign made cars ALL THE TIME. I guess that's the only enjoyment I'll get out of this, they'll still be paying for a GM car afterall.
Posted by promaclaura at 4:31 AM : Jun 2, 2009


I can't figure you ditto heads out... If you hate the people of this nation and our leader so much why stay here? I mean ONLY a fool would doubt that the People of this nation went to the polls last November in RECORD numbers and voted FOR the President so I just don't get your lack of knowledge here.

[skyk-2009]

Just like the Chrysler dealerships...republican dealerships out...democratic voting dealerships in...

It all nice pay back for his regime...happens in every communist regime on the planet.
Posted by IThoughtItWasFunny at 4:15 AM : Jun 2, 2009

ROFLMAO YOU bought into that Talking Point? Baaaaaaaaaaaaaahahaha How stupid are you? How do YOU know who the Car Dealers voted for? How does Chrysler or Obama? ROFLMAO Every time I think you freaks in the fringe have gone as far as you can, you prove me wrong. If you check the polling of the Dealers you will find that over 90% of them contributed to the Confederate Party in the last election so what's the chance More Dealers that claim to be Republican will be closed? ROFLMAO Wow! Talk about UNEDUCATED??

[skyk-2009]

I live in Michigan, smack dab in the middle of UAW country. Most have nice homes, motor homes, boats, all terraign vehicles, you name it they have all the toys. So if you're a garage saler then head on up because there is going to be a lot of bargains on equipment that most people consider luxuries.
Posted by promaclaura at 4:43 AM : Jun 2, 2009

I don't get your point. Are you jealous or just engaging in a little class warfare? When we started allowing the powers that be to trash and bust our unions we have seen a constant and steady decline in our standard of living to the point that we are now DEAD LAST in the G-7 and STILL you losers attack them. Why? They did NOTHING wrong, they played by the rules and ALL of us benefited from it. Then along came the Global Economy Crowd and changed the rules. Now we ALL, everyone of us, must suffer. Doesn't take much to figure out where we went wrong here.

[omega39-2009]

Let's talk facts!!!! Good friend of mine told me yesterday that he makes a little more than $95,000 per year plus benefits. The latest agreement they just approved a week ago calls for him to have his pay reduced by $30. per week or $1500 per year. Ever wonder why Gettlefinger (boy did he give us taxpayers the finger) never came out and talked in detail about how much the UAW gave up it's because they only gave up $30 per week or 75 cents per hour!!!!!! The government states they need 30Billion for GM to get thru bankruptcy. The 100,000 UAW members will probably get 4-5 Billion (they get 95% of pay during the 9 weeks GM is shut down). The auto task force wants 21000 to leave GM and they are offering $115,000 plus a $25000 car voucher for ever UAW worker who quits the company. The 21000 workers will get paid 3 Billion to leave GM . A good portion of the remaining 30 Billion will be paid for UAW retirees and benefits for the current workers. Remember during the shutdown no cars will be made so we taxpayers are paying 30Billion dollars for NOTHING. THIS STINKS!!!!! GM is not ever close to paying the same wages as Toyota or Honda. WE'VE BEEN LIED TO!!!!!!!
Posted by golfered2

I have a friend that's making a hundred billion, zillion dollars a year holding down a union job and all he has to do is sit around all day and play the kazoo while munching handfuls of skittles and M&Ms...Geez.

[american_11-2009]

Meantime, with millions of Americans without jobs, the invasion continues, no Liberal Democrat will address the 500 pound gorilla in the room, and millions of invading, plundering, welfare loving, Illegal Aliens taking millions of jobs that should be American jobs and 100,s billions of dollars in social services that should be for American citizens!

One cannot be political correct and admit that Illegal Aliens are an large part of the problems in this Nation.

Their negative impact extends to every area from Sub-par loans & defaults, Underground economy, Massive document fraud, Lower standard of living, Crime, Overflowing prisons , Bankrupted hospitals, Failing schools, Property Taxes, Insurance costs, Environment, Culture, Welfare costs, Welfare fraud, SS fraud, Voter fraud, Disrespect for our laws & country, our Constitution against invasion and even Balance of payments occurring from oil and other imports to support the 20 to 30 million illegal aliens in this country!

One has to only look at Calif. which is basically mostly an Spanish speaking, Bankrupt state that cannot afford to provide Welfare, Schooling, Medical, Prison cells etc. for millions of MS-13 Gang bangers, Drug dealers, Rapist and other assorted Criminals and uneducated, fast breeding, third world rejects from Mexico!

In a very few years it will be impossible to see where Mexico ends and Calif. begins as both will be an third world cesspool!

Failure to secure our borders and reward the Invading horde for their invasion and their relatives in an never ending chain with American Citizenship is nothing less than committing National Suicide & will assure our future is an over populated Spanish speaking third world Nation that is an Cesspool of Corruption, Crime, Poverty and Misery modeled on Mexico!

[YCantWeAllGetAlong]

Ok, first if we "let them fail" then it would be catastrophic. Now, that they are just filing bankruptcy, it's catastrophic. Unreal. As usual, families will suffer, houses will be lost, but I'll bet the big wigs won't feel a thing. Pitiful.

[promaclaura]

I live in Michigan, smack dab in the middle of UAW country. Most have nice homes, motor homes, boats, all terraign vehicles, you name it they have all the toys. So if you're a garage saler then head on up because there is going to be a lot of bargains on equipment that most people consider luxuries.

[promaclaura]

Maybe if the UAW had cut their wages to become competitive years ago more people would retain their jobs. It seems to me they are pretty cold-blooded for their fellow members that are loosing their jobs, so the others can maintain their unrealistic wages. I'm well aware that management performed poorly and put out too many models, but it still doen't change the core reasons of GM's downfall.

[promaclaura]

I see Obama bumber stickers on foreign made cars ALL THE TIME. I guess that's the only enjoyment I'll get out of this, they'll still be paying for a GM car afterall.

[golfered2]

Let's talk facts!!!! Good friend of mine told me yesterday that he makes a little more than $95,000 per year plus benefits. The latest agreement they just approved a week ago calls for him to have his pay reduced by $30. per week or $1500 per year. Ever wonder why Gettlefinger (boy did he give us taxpayers the finger) never came out and talked in detail about how much the UAW gave up it's because they only gave up $30 per week or 75 cents per hour!!!!!! The government states they need 30Billion for GM to get thru bankruptcy. The 100,000 UAW members will probably get 4-5 Billion (they get 95% of pay during the 9 weeks GM is shut down). The auto task force wants 21000 to leave GM and they are offering $115,000 plus a $25000 car voucher for ever UAW worker who quits the company. The 21000 workers will get paid 3 Billion to leave GM . A good portion of the remaining 30 Billion will be paid for UAW retirees and benefits for the current workers. Remember during the shutdown no cars will be made so we taxpayers are paying 30Billion dollars for NOTHING. THIS STINKS!!!!! GM is not ever close to paying the same wages as Toyota or Honda. WE'VE BEEN LIED TO!!!!!!!

[patriot2381]

Is this about the end for manufacturing in America? Finally they killed the beast.

[vinylogy]

the innocent workers of GM were FORCED to sacrifice when they have already lost so much. God help us! Posted by seeker469
_______________________________________________________________________

LMAO The average UAW worker has roughly the same skill set as a McDonalds counter worker. The McDonalds kids get $8/hr no benefits, the UAW workers get nearly $80/hr including bennies!
Imagine if McDonalds had to pay its kids $80/hr. They go broke just like GM.

UAW workers should be paid the same as other workers with equal skills...$8/hr. GM would be doing quite well now except for UAW greed.

Equal pay for equal skills.

[its-not-over]

you people are fruits. no one cares what you think.