The Moraine plant employs about 2,500 workers and produces the GMC Envoy, Chevrolet Trailblazer, Saab 9-7X and Isuzu Ascender.
The plant employed about 4,100 workers until mid-2006, when GM eliminated the third production shift based on slowing sales for SUVs, which have been hurt by higher gasoline prices.
Workers at the plant were laid off in March because of the strike against Detroit-based American Axle and Manufacturing, a supplier to the plant. The workers had returned to the job last month.
GM said there are several reasons for closing the Moraine plant, but one of the main reasons is higher gas prices.
The plant makes mid-sized SUV’s and GM officials said demand for those are down because consumers are having to pay a lot more to fill up. Also, News Center 7 was told that there are environmental considerations as well.
At this time, GM said it is unlikely that a new product will be made at the Moraine plant. Production is expected to end in 2010, but it could be sooner, depending on the demand.
Troy Clarke said, “Today what we're seeing is a significant shift away from this very product. The very product that in the early 90s resulted in Moraine being retooled. But we see this trend reversing as people switch back toward cars.”
According to GM, the Moraine plant made 353,000 mid-sized SUV’s in 2005. Moraine city leaders spent Tuesday morning talking with GM officials about the closure.
Officials said that first and second shift workers will be in full production through the end of the year. GM officials said workers currently do not have the right to transer to other facilies around the country. However, the shop chairman said he and GM are working on making that an option.
News Center 7 was told that roughly 300 workers have signed up to take GM's buyout option. However, officials believe that number will increase with the news of the closure of the plant.
GM said it plans to build a new generation compact Chevrolet at its sprawling Lordstown plant in northeast Ohio and add a third shift.
He said the GM board has approved a next-generation Chevrolet compact car that will have a 1.4-liter turbo engine and represent a 9-miles-per-gallon improvement in fuel efficiency over current models.
He also announced that a third shift would be added in Lordstown starting in September.
Gov. Strickland Pledges Support To Workers
Ohio Gov. Ted Strickland is pledging to do all he can to help the workers who will be losing their jobs. However, he is not making any promises about finding ways to keep the plant open.
Strickland told WHIOTV.com that he heard the news form GM in a phone call Monday night. He is pledging his support, but said the mess was not Ohio’s doing.
Strickland said the news hits hard, especially for families, but it is not much of a surprise. He said with high gas prices, it is not logical for GM would cut back on production of vehicles that are not in demand.
He blames Washington for this mess and for not dealing with the high cost of gas.
Strickland said, “We’ve got an administration in Washington, D.C., that is absolutely passive, totally asleep at the switch and not paying attention to the economy of Ohio or American and these car companies are facing the results of these incredible high energy costs.”
Strickland hopes to provide aid to workers in the form of retraining.
What is to become of the plant? Other political leaders hope to find a new use for the facility and bring new jobs.
Ohio House Majority Leader, Jon Husted, said, “We hope we can be prepared to get a new production facility there in the long run, whether it is with the GM family or outside of the GM family.”
The governor said there is apparently nothing he or anyone else can do to talk GM out of its decision to close. He is hoping to make the most of the bad situation.