GM LORDSTOWN State-aid plan is nearly done

The union said it appears likely that GM and the state will agree on a financing package.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
LORDSTOWN -- A state-aid package sought by General Motors Corp. for the proposed renovation of the Lordstown Assembly Plant is nearly complete, officials said.
"Everything we're hearing is positive. We're waiting for the state to present their final offer," said Sam Alonso, a member of United Auto Workers Local 1112's shop committee.
Expects agreement: Tom Mock, a GM spokesman, said he expects an agreement with the state within a few weeks.
GM is asking for a variety of financing help, including tax incentives and worker training grants.
GM has said it needed a new labor contract and the state aid before considering a plan to spend about $500 million on renovating the plant. Union workers in January approved a four-year labor contract that would take effect when the current agreement expires in 2003, but only if the plant is renovated.
Alonso, who is filling in this week for vacationing shop chairman John Mohan, said the state-aid package is one of the last elements needed for the project. A spokeswoman for the Ohio Department of Development said she would have to check on the status of the negotiations with GM.
Reviewing plan: Alonso said a GM board that studies funding for such projects is reviewing the renovation plan but the union doesn't know how long that will take. Herman Maass, who recently retired as plant manager at Lordstown, said he expected a decision from GM by June.
Union officials have said in recent months that corporate executives who have visited the plant have given favorable comments about the plant's future.
The plan calls for a new paint shop and the reconfiguration of nearly every department in the plant. The union and plant management have proposed a way to keep the plant operating during construction.
The union hopes GM will commit to renovating the plant and building the next generation of GM small cars there.
GM has said it will make the Chevrolet Cavalier there until 2004 but hasn't committed to the plant beyond that. The plant has about 4,600 hourly workers.