Marion Mayor Wayne Seybold was optimistic about the future of the city’s General Motors plant Monday after the company announcement it will cut 21,000 U.S. jobs and phase out the Pontiac brand that the factory stamps metal panels for.
The Marion plant received a $130 million upgrade from GM in 2005. The 53-year-old plant employs 1,200 workers in the city midway between Indianapolis and Fort Wayne.
Seybold says he has worked with the Marion plant to insulate it from new cutbacks. He said he presented the plant with a performance-based incentive plan that he hopes will protect the plant.
“Our plant seems to be holding in there just fine. We took some aggressive steps a few months ago to help our plant avoid downsize,” Seybold said after GM announced its latest restructuring plans.
GM said it plans to eliminate the Pontiac brand and reduce the total number of assembly, powertrain, and stamping plants in the U.S. from 47 in 2008 to 34 by the end of 2010. That includes the acceleration of six additional factory closings announced in February and one additional plant idling. GM did not identify the affected plants.
The mayor said his administration will take plans to form a tax-increment financing district around the GM plant to the city council next month. Discussions also have been held with local redevelopment and planning commissions.
If the plant were to be closed, Seybold said it would cost the city millions of dollars in lost tax revenues in addition to throwing hundreds of workers onto unemployment rolls. Seybold in December traveled to Washington to join about 30 other mayors in asking Congress to support a bailout for the automaker.
GM has until June 1 to restructure and secure more government money in addition to the $15.4 billion in loans it’s already received. If the restructure doesn’t appease the government, the company could enter bankruptcy protection.
The Associated Press left a message seeking comment Monday with the UAW Local 977, which represents hourly workers at the Marion plant.
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