Arlington plant safe in General Motors bankruptcy announcement

General Motors filed for bankruptcy protection June 1 as the U.S. government became a majority shareholder in the nationÂ’s largest automaker. The company also announced it would close 14 plants, including seven in Michigan as part of its restructuring.

The companyÂ’s Arlington assembly plant was not included in the plant closings. The Arlington plant, which employs about 2,500 workers, is now the only G.M. plant building full-size SUVs. The closings will leave G.M. with 33 plants in the U.S. by 2012, down from 47 in 2008.

At a press briefing discussing the bankruptcy filing June 1, President Obama said the government wants to put its investment in private hands as soon as possible.

“In short, our goal is to get G.M. back on its feet, take a hands-off approach, and get out quickly,” he said, according to a transcript of the conference provided by the White House.

The Arlington plan has some advantages being the only plant building full size SUVs, said Bernard L. Weinstein, director of the Center for Economic Development and Research at the University of North Texas in Denton.

“It’s a good distinction to have. G.M. trucks and SUVs have a good reputation, so that should help Arlington and this area,” he said.

Weinstein said the government has a lot at stake in successfully reviving G.M.

“We are essentially gambling $60 billion in taxpayer money on a rebound in car sales that will help G.M. and help Ford and Chrysler,” he said. “That’s the big unknown. How quickly will auto sales rebound? That’s hard to say.”

Many economists are also worried that because the U.S. government is now so heavily involved in the economy, there could be a rise in protectionism and not just in the U.S., Weinstein said. France and Germany, for instance, are also aiding their automobile manufacturers.

“Now that Obama is the de facto CEO of G.M., are we going to see policies that favor G.M. and Chrysler over Ford, and also putting foreign manufacturers at a competitive disadvantage?” he said. “And what does that mean for global competition? There are a number of economists that are worried about a rising tide of protectionism.”

rfrancis@bizpress.net