General Motor’s announcement of more lay-offs, more plant closings and the axing of a historic brand had Orion officials and local car dealers anxious Monday.
As GM continues its restructuring plans under the watchful eye of the federal government, word that the once-seemingly indomitable auto giant will phase out its Pontiac brand and close three more plants has a lot of meaning in Orion.
The Orion plant manufactures the Pontiac G6 and the Chevy Malibu.
Much of the area’s prosperity in the past three decades has been intertwined with the automaker’s presence on Silverbell Road.
Not only is GM a source of tax revenue that helps fund township programs and the school district, but many of the plant’s 2,700 employees live, shop and dine in the area.
If both the taxes and workers eventually disappeared, Orion would become a very different economic area, township and school officials said.
‘I’m holding my breath,? said Township Supervisor Matt Gibb ‘It would be a devastating blow to our community. Everything would take a hit.?
According to Gibb, the plant pays around $600,000 in property taxes a year. The township receives around $200,000 of that; the rest goes to the Lake Orion Community School District per the school funding formula.
‘I’m watching it very carefully,? said Jillynn Keppler, the assistant superintendent of administrative services.
While both Keppler and Gibb said the true effects of the plant closing are unknown at this time, Keppler speculated about what would happen to the schools.
‘If the Orion plant tax base was lowered, the school’s operating fund would see no decrease,? she said.
The state, which is going through its own economic woes right now, would be forced to make up for lost monies.
The school district also levies debt millage against the property.
‘There’s a potential that those funds would decrease,? Keppler said.
The monies are used to repay the district’s bond debt–or, in other words, the mortgage the district pays on its buildings.
More important than losing tax revenue for township and schools would be the overall effect on Orion, according to officials.
‘It’s really more about what happens to the community,? Keppler said.
If 2,700 people were laid off, restaurants like Christie’s and Culver’s would suffer, according to Gibb. Many of the plant’s workers also live in Orion, which could mean less economic activity in the township and village and more home foreclosures.
There is also a base of suppliers and car dealerships in the region who could take a hit.
Bill Golling, who has run the Golling Pontiac car dealership on M-24 for 29 years, said he is disappointed to hear his main auto brand will be phased out over the next year.
‘I love Pontiac. It’s a hard thing to think about going forward without them,? he said.
But he is trying to stay optimistic. Warranties are still being offered on his remaining stock of Pontiac stock and he hopes to bolster his line of GMC trucks.
‘It’s in everyone’s best interest for GM to do well,? he said. ‘Sometimes out of adversity comes opportunity.?