The announced anticipated closing of the Shreveport GM facility in Shreveport has raised various issues concerning the actual timing and politics such as the stimulus money that Governor Jindal has rejected.

The following are statements from Governor Bobby Jindal, Louisiana Economic Development Secretary Stephen Moret, Mary Landrieu, plus the Louisiana Legislative Black Caucus and  the House Democratic Caucus.

From Bobby Jindal:

Today, Governor Bobby Jindal released a statement regarding the Shreveport GM facility, following his phone conversation this afternoon with GM North America President Troy Clarke.

Governor Jindal said, “I spoke to GM North America President Troy Clarke this afternoon and he said that while the Shreveport facility has been moved into a category under the ‘old GM’ as part of their bankruptcy proceedings, the facility will be open through 2012 and that many options are still on the table for Shreveport, including the possibility of GM operating the facility or selling the plant to another buyer.

“I want to stress again that we will exhaust every possible avenue before us to save these jobs in Northwest Louisiana and we still have many opportunities before us at this point in the process. We also continue to work with the potential Hummer acquirer to produce the H3 product and re-tool the plant to produce the next Hummer vehicle, while also standing ready to pursue possible alternate uses for the facility, if needed.

“We are continuing to aggressively work with both GM and Sichuan Tengzhong to help secure the best possible outcome for the GM-Shreveport facility – and the people of Northwest Louisiana.”

Secretary of Economic Development Stephen Moret said, “We have been aggressively working to secure the future of the Shreveport-GM facility since we first learned of GM’s struggles on the national level about a year ago. We formed a state-local GM task force to take every possible action to keep GM-Shreveport open and return it to full production. Since then, we visited top GM executives in Detroit last fall, we have had many calls with top GM executives, and we have connected several times with the potential Hummer buyer. We also engaged a top auto industry firm, A.T. Kearney, to help us craft a strategy to secure the future of the facility and expand our opportunities there.

“Throughout this last year, GM has consistently sent encouraging messages to us that the quality of the workforce and their recent investment in the facility, as well as our offer of incentives to retool the facility to produce a next-generation product, led them to believe that we were in a strong position to return the Shreveport facility to full production.

“Today, we learned that, while the facility is scheduled to continue to operate until 2012, its long-term future is uncertain because it depends on what possible new products GM will introduce after that time.”

Company officials also told the state today that the facility is slated to restart in August, and that production of the H3 should continue into 2010; and production could continue into 2012 for the Canyon and Colorado. Additionally, representatives of both GM and Sichuan Tengzhong suggest that negotiations for the sale of the Hummer brand continue on track for completion in the next few months.

From Mary Landrieu

Sen. Landrieu said:

“The news that GM will close its Shreveport plants by the summer of 2012 is unexpected and extremely disappointing. Considering the huge sums of taxpayer dollars that have been allocated to prop up the Detroit-based auto companies, the hard-working people of our state expected and deserve better. While consolidations and restructuring may be necessary at times, I would hope that GM would pursue all options to keep these factories, and others around the country, operational.

“I will work with local, state and federal officials to keep the Shreveport facilities open, even if not under the GM banner.”

Joint press release from the Louisiana Legislative Black Caucus and   the House Democratic Caucus

The announcement this morning that the General Motors plants in Shreveport would close by 2012 shocked and saddened Northwest Louisiana and all of the state.

The plants currently employ hundreds of workers. Losing those jobs in these tough economic times will be devastating to those working families and the area’s economy.

Unfortunately, Gov. Bobby Jindal’s decision to turn down $98 million in federal stimulus money for our unemployed will make this difficult situation even more disastrous for those working families and the Shreveport area.

The federal stimulus package that the Legislature rejected would have:

• provided extended benefits for workers in retraining programs
• boosted our unemployment trust fund
• delayed tax increases to businesses
• pumped hundreds of millions of dollars into Louisiana’s economy

Had Louisiana accepted the federal investment, the economy and working families of Northwest Louisiana would be in a better position to face the coming crisis.

"I am saddened that we rejected money for these families and re now sending those funds to other states," said Rep. Karen St. Germain, D-Pierre Part, chairwoman of the House Democratic Caucus.

"Not only will we hurt these Louisiana families, but they may now have to move to other states for work," St. Germain said.

"These federal stimulus funds that the administration has rejected is vital to those who will lose their jobs as a result of the GM plant closure. These dollars would have provided them with the necessary training and educational opportunities to obtain a job in new and upcoming industries. Because of this refusal, many of these workers will not be afforded the chance to retool themselves," said Rep. Regina Barrow, D-Baton Rouge.

“The news that GM will close its Shreveport plants by the summer of 2012 is unexpected and extremely disappointing. Considering the huge sums of taxpayer dollars that have been allocated to prop up the Detroit-based auto companies, the hard-working people of our state expected and deserve better. While consolidations and restructuring may be necessary at times, I would hope that GM would pursue all options to keep these factories, and others around the country, operational.

“I will work with local, state and federal officials to keep the Shreveport facilities open, even if not under the GM banner.”