GM not changing anything for now

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July 29, 2010

Company tells workers its is 'assessing its business model'

By Daniel Human Tribune business writer The Kokomo Tribune Thu Jul 29, 2010, 09:00 AM EDT

Kokomo — General Motors leaders on Wednesday addressed the company’s business operations and competition to its workers in Kokomo, GM said.

GM spokesman Kevin Nadrowski said company leaders spoke to their Kokomo employees during a routine update meeting. The company told the workers it is "assessing its business model," he said, but he would not further comment on the discussion.

“We’re not making any announcements, and there are no immediate changes to

operation,” he said.

United Auto Workers representatives did not return phone calls Wednesday seeking

comment regarding the meeting.

Confusion arose after Inside INdiana Business quoted UAW Region 3 Director Maurice Davison on its web site Wednesday afternoon as saying Delphi Automotive Services LLC was going to discontinue its operations in Kokomo because GM was dropping it as a supplier.

Delphi spokespeople Linda Ferries and Lindsey Williams said the company, which is Kokomo’s second-largest employer, has had no intention of shutting down any of its operations in the city.

The two companies have had intertwined histories.

Delphi began operating under GM’s umbrella, but it spun off from the Detroit auto manufacturer in 1999. Last year, GM bought back part of Delphi and the company now sells the majority of its products to its former parent.

Automotive industry analyst Dave Cole, chairman of the Center for Automotive Research, said GM has some “highly vulnerable” operations, especially the integrated circuit fabrication plant in Kokomo. The plant, which employs about 375 people, manufactures chips that are becoming an “outdated” technology, Cole said.

“What the question is, is how competitive their operations are?” he said. “They were competitive 15 or 20 years ago.”

Kokomo and Howard County officials said Wednesday they had not heard from GM regarding any changes at the local site.

“I think people maybe misunderstood some things,” said Kokomo Mayor Greg Goodnight. “I haven’t gotten an official anything from Delphi or GM or the UAW for that matter.”

Jeb Conrad, president and CEO of the Greater Kokomo Economic Development Alliance, said he also had not heard about any changes at GM. He said the Alliance is usually one of the first groups to know about major changes to operations, such as closings.

• Daniel Human is the Kokomo Tribune business reporter. He can be reached at

765-454-8570 or at daniel.human@kokomotribune.com.

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