Tiny Chevrolet Sonic Helps Detroit Shake Off Rust
At the Orion (pronounced OHR'-ee-uhn) plant, the recession had slowed sales of the midsized Pontiac G6 and Chevrolet Malibu cars that were made there. In February 2009, the company eliminated a shift and laid off 400 workers. The outlook darkened even more when GM announced it would dump the Pontiac brand. Since the G6 made up half of Orion's production, workers feared the plant was doomed.
It didn't take long for issues inside the plant to ripple outside to the surrounding concrete industrial parks. Dozens of auto-parts companies laid off workers. At Casey's Chicken, a barbecue joint in a nearby strip mall, a healthy side business catering GM birthday and retirement parties dried up.
About that time, Orion Township's chief executive, Matt Gibb, got a call from Ed Montgomery, President Obama's auto-recovery czar, telling him the plant was on a secret list of GM factories to be closed. The factory was the township's largest employer and taxpayer. About a third of its 35,000 residents work for GM, Chrysler or parts suppliers.
As Gibb watched the local economy unravel, he was haunted by a documentary he had seen about Janesville, Wis., where another GM plant had closed, leaving behind empty industrial parks and ball fields overgrown with weeds."I don't want to be Janesville," he told friends. ___ ANGUISH AND ANOTHER CHANCE GM, meanwhile, was drowning, even with emergency loans from the government. On June 1, 2009, it became the largest American industrial company ever to file for Chapter 11 bankruptcy protection. It had just $2 billion in cash and $172.8 billion in liabilities. The bankruptcy wiped out GM's debts, allowed it to shed 21,000 jobs, dump 2,600 dealers and close factories, including Orion. "It was like somebody just took the heart out of you," recalled Mike Dunn, the chief United Auto Workers union bargainer at Orion. "You didn't really know if you would have a future."
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