GM Wants Millions To Pick Spring Hill Plant For New Car

Posted:

SPRING HILL, Tenn. - General Motors wants Tennessee to show them the money to keep the Spring Hill plant up and running. Governor Phil Bredesen said GM executives are opening up a bidding war between Tennessee and two other states.

Wisconsin and Michigan are also in the running, and each state will have to figure out how much the GM jobs are worth.

For months a cloud of uncertainty has hung over Spring Hill and the General Motors plant.

"We'd like it to stay open for all the young people to have a chance," said former GM employee Debbie Brittingham.

Tennessee will have to pay to $200 million to keep the 2,900 GM jobs. Those people with close ties to the company said the price was worth it.

"If that plant goes under and closes look at everything that's around here that's going to go under. People don't realize it's a domino effect, and I really would hate to see that happen," said Brittingham.

MTSU Professor of Economics, David Penn said Spring Hill would be at the top of the list if GM's decision was based on location, workforce and the plant's retooled design. Cash incentives could trump all.

"I think it's unfortunate the states have been presented with this dilemma," said Penn.

Penn said Tennessee does not have a history of paying cash incentives, but the pressure to win GM's small car project could lead to a bidding war between Tennessee, Michigan and Wisconsin.

"Is there a maximum? Is there an amount that's too much to pay for these jobs, yes. I don't know what it is but that's what the state has to think about right now," said Penn.

Some in Spring Hill said the state's already given GM enough.

"I mean they've had long enough to survive. If they can't they need to close it up and start over," said Spring Hill resident Mike Coleman.

Governor Bredesen met with GM officials last week which is where the $200 million figure surfaced. The governor said the state does not have that kind of money.

NewsChannel5 contacted both Wisconsin and Michigan governor's offices for reaction. Neither are saying what they are willing to pay General Motors.

General Motors executives could make a decision on the Spring Hill plant by the end of the month.