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Say Goodbye to the Company Town
Filed in archive by philip on February 21, 2006
Anderson 1951

Those of us who critique the auto industry are often too flippant when discussing the financial difficulties of General Motors. We put the problem down to a "lack of dynamic products," as though journalist soothsayers could fix everything if only GM allowed us to make the marketing decisions.

GM's managers are dealing with more than fancy new automobiles. As part of their cost-cutting efforts they must close several factories, some of which are located in towns where a large percentage of the population depends on GM employment to stay afloat. As the plants close, there's an entirely different side to the drama.

A heartbreaking story in the New York Times is quite revealing as it reveals that "General Motors once had so many plants in the town of Anderson Indiana, that it had to stagger schedules so streets would not be clogged with traffic when the workday ended." 35 years ago, one of every three people in Anderson worked for G.M. Now there is not a single G.M. plant left, and just two parts plants that G.M. once owned still survive. Anderson (seen here in a 1951 photo) is still dependent on General Motors pensions and medical support. A "welfare state," the New York Times called it.

"When we all die off, this city will die," Jesse Lollar, 83, said last week, as he finished an early dinner of lima beans and macaroni and cheese at the MCL Cafeteria in the Mounds Mall. Indeed the "company town" may be dead, but we car guys should not be privileged to toss flowers at the funeral.

Permalink: Say Goodbye to the Company Town
Tags: GM  pensions 
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