GM LORDSTOWN Union regains engine, tire work

THE VINDICATOR, YOUNGSTOWN,
Android Industries and Oakley Industries have been preparing plants to take on the work.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
LORDSTOWN -- Two Michigan companies that spent $20 million to prepare local plants to supply the Lordstown Assembly Plant here have had their work taken away by General Motors.
Under pressure from United Auto Workers officials in Detroit, GM has agreed that union workers at the assembly plant will continue to perform the engine and tire work instead of the suppliers, said John Mohan, shop chairman of UAW Local 1112.
That will keep about 190 jobs inside the plant.
Mohan said he doesn't know what will happen to the supply plants or their nonunion workers because the union doesn't know what is contained in the contracts with the suppliers.
"GM will have to rectify their situations," he said.
Tom Mock, a GM spokesman, said that he couldn't comment on the operations of the suppliers but that many options are being studied on how and where the UAW workers will perform the engine work. He said he hadn't heard that the tire work also was being retained by UAW workers.
Mohan said these UAW workers may be moved to another location temporarily if a renovation of the assembly plant is approved.
Suppliers' preparations: Android Industries moved into an industrial building on Ridge Road in Vienna Township last summer and began preparing it for engine work. Android's project cost $10.5 million, said the Youngstown/Warren Regional Chamber of Commerce, which assisted in arranging financing.
Android is receiving engines from another plant and installing related parts before the engines are shipped to the assembly plant.
Oakley Industries is building a new plant near the assembly plant. It was to prepare tires that were to be placed on the Chevrolet Cavaliers and Pontiac Sunfires that are built at the plant. Oakley's project was to cost $9.7 million, the chamber said.
Officials from Android and Oakley could not be reached to comment.
Reason for original plan: GM was moving the engine and tire work out of the assembly plant so it could make room for a massive remodeling project that is proposed.
UAW officials in Detroit began questioning the plan in August, saying they didn't like losing the work, especially when GM hasn't committed to the renovation plan.
Android will continue to do some engine work for now because the assembly plant isn't capable of working on the newly designed engines, Mohan said. GM is offering the upgraded engine as an option for its small cars.
It will take at least several weeks before equipment needed to work on the new engines can be installed, Mohan said.
Android has been building test engine units and is to begin actual shipments Tuesday, Mohan said. These engines will be placed in about 15 percent to 20 percent of the Lordstown-built cars at first, but GM will begin using the engine in all of the Lordstown cars sometime next year, he said.
The Oakley plant hasn't started production, he said.
Mohan said the Lordstown plant remains in a "very, very strong" position to receive the renovation and is the only plant being talked about in Detroit for GM's next generation of small cars.
shilling@vindy.com