General Motors officials announced Monday production at the GM plant in Janesville, Wis., will be halted by the end of the year, an earlier closure date than previously expected.
This past summer, General Motors announced the Janesville plant would close by 2010 because high gas prices reduced the demand for sports utility vehicles, but stated Monday it will cease production of SUVs by Dec. 23 of this year due to the faltering economy.
Gov. Jim Doyle said in a statement he will continue to fight to keep the GM plant open in Janesville.
Even in the face of national economic challenges, we will still continue our efforts with the local union, businesses, community leaders and our Congressional delegation to convince GM to bring a new product line to the Janesville plant,"" Doyle said.
U.S. Rep. Paul Ryan, R-Wis., who represents Janesville, said in a statement the early closure is ""disappointing, although not surprising,"" adding he is hopeful talks between GM officials and state, local and union leaders will lead GM to use the plant for another product.
Mason Carpenter, a UW-Madison associate professor of management and human resources, said the early closure is due to automobile sales decreasing faster than expected, and added companies like GM are hurt badly during a recession because their products are nonessential.
