Like you couldn’t see this coming. The Spring Hill GM plant in Tn didn’t have a chance in hell of receiving this contract. The UAW threw their union comrades in Spring Hill under the bus, they’re just following the lead of the new CEO (Obama) of GM (Government Motors). I can’t believe that Bredesen, Alexander and Corker actually thought that Obama would keep politics out of making a business decision for a business that will have nothing to do with making a profit. Government owned entities don’t worry about profits, they only worry about consuming other business’s profits.

This could work out to be the best thing for the Spring Hill plant in the long term. Another business can now come in and buy this plant. Course, if the buyer has any sense, no unions will be involved in the business.

The plant chosen in Michigan won’t be successful just as Government Motors won’t be successful. The ball has just been kicked down the road a bit with taxpayer dollars before it goes out of business. These mini cars won’t be a market seller, at least enough for the plant to be profitable.

With two strikes against it there is no way this is going to be a viable business. The two strikes, government and union ownership!

From WSJ – Economics Wasn’t GM’s Only Criteria for New Plant

So Tennessee’s three top officials were astonished last month, in a meeting with GM, when they were told the first two criteria were “community impact” and “carbon footprint” — or how the choice would affect unemployment rates and carbon-dioxide emissions.

“Those didn’t strike us as business criteria at all,” said Tennessee Sen. Lamar Alexander, who was joined in the meeting by fellow Republican Sen. Bob Corker and the state’s Democratic governor, Phil Bredesen. Those factors, Mr. Alexander said, “seemed odd for a company struggling to get back on its feet.”

Hey, every successful business plan HAS to include those criteria right. How else will a company make a profit?

The area has one of the region’s highest unemployment rates, at 12.4%, though the Wisconsin site’s was even higher, at 12.9%. Janesville, by contrast, offered a less-expensive labor pool, according to people briefed on the plan. In Spring Hill, GM has a new, $225 million paint shop. The Orion plant’s paint shop needs to be replaced.

Set to emerge from bankruptcy within weeks, GM declined to disclose the factors it weighed in picking Orion, but said the process was free of political meddling. “It’s in the best interest of all involved to not discuss the selection criteria for the small-car plant,” said GM spokeswoman Sherrie Childers Arb. “All three plants have individual merits, but when all told, the Orion plant scenario provided the best business case.”

This kind of reasoning is what you get from government bureaucrats. These people must think taxpayers are all stupid.

GM, Government Motors, Obama, Spring Hill Tn, Janesville Wi, Orion Mi, Phil Bredesen, Lamar Alexander, Bob Corker, UAW, unions

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