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Governor Jindal Issues Statement on GM-Shreveport

Press Release

Location: Baton Rouge, LA

Governor Jindal Issues Statement on GM-Shreveport

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.

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