by Kristin Longley | The Flint Journal
Wednesday February 04, 2009

LANSING, Michigan -- Could the battery packs for the Chevrolet Volt be assembled in Flint?

Competition is stiff, but we're in the game, one state lawmaker said.

General Motors officials already have said that Flint workers will build the gasoline-powered backup engine for the electric Volt -- and landing the battery work, too, would be a major coup that could spark even more life into the sagging local economy.

"I have a good feeling about it," said state Rep. Lee Gonzales, D-Flint Twp., about Genesee County's chances for landing the Volt battery work. "I think it's a good possibility. In other words, we're in the game."

Speculation about where the battery packs would be assembled began circulating Tuesday after Gov. Jennifer Granholm's State of the State address, during which she pointed to GM as an example of a business keeping jobs in Michigan.

GM is staying mum on the prospect, saying the only details it has confirmed are that the battery packs will be built in Michigan.

"That's all we have announced," said Sharon Basel, GM spokeswoman. "We're not ready to announce a site. We're still exploring several options."

The Volt has been the centerpiece of GM's plans as it struggles to survive the economic downturn and prove it can be innovative.

For Flint, it's been a roller coaster.

In a rousing rally less than five months ago, state, local and GM officials celebrated the construction of a new plant to build a gasoline engine that would power the Volt and Chevy Cruze.

Then in December, word came that plans had been delayed.

Then, last week, GM confirmed it had called off the $370-million construction project.

Still, GM officials have insisted that they expect the engine work to come to Flint -- even if there isn't a new plant to go along with it.

State Sen. John Gleason, D-Flushing, also feels optimistic about Flint's chances of snagging the battery-assembly work.

"It could happen," he said. "Wouldn't that be great? You never know what could happen."

Flint Mayor Don Williamson said he was less optimistic about the possibility.

"There's always a chance," he said, "but I haven't heard nothing about a battery plant in this area."

Local lawmakers said Genesee County residents will benefit from the plans Granholm laid out in her seventh State of the State speech.

The Democratic governor said she wants to reduce the state's reliance on imported coal and natural gas for generating electricity by 45 percent by 2020. She asked home and business owners to install solar and wind energy technology and said unemployed workers can take advantage of a new Michigan Energy Corps that will weatherize thousands of homes and schools in the state.

"I will ask the Legislature to make Michigan the first state in the nation to let every homeowner, every business, become a renewable energy entrepreneur who can make money by installing solar panels or wind systems on their home or business and selling that renewable energy back to the power company," she said.

State Rep. Jim Slezak, D-Davison, said he hopes measures are put in place for families who want to embrace the governor's renewable energy proposals.

"Every family can be a green family, but we need to let people know how to do it," he said.

Granholm also has asked universities to freeze tuition next school year and plans to ask auto insurance companies to freeze rates, threatening retribution for those that don't.

As for education, the governor said plans are in the works in Flint and other areas to replace ineffective high schools with smaller, rigorous schools. And 10 high-poverty areas in Michigan will become Promise Zones, replicating the Kalamazoo Promise, that help cover students' college tuition.

"That will be one of my top priorities," Gleason said of making Flint a Promise Zone. "We need to give these kids a better chance."

A structural deficit and falling revenues continue to plague Michigan, and Granholm suggested several belt-tightening steps in her speech, including reducing state departments from 18 to eight.

She also named Lt. Gov. John D. Cherry Jr., a Democrat who lives in Vienna Township, to head a commission that will examine ways to streamline state government. The task could provide Cherry, who has announced his intentions to run for governor in 2010, with a gubernatorial campaign boost.

"The days when government could be all things to all people are behind us," Granholm said. "This is no time for special interests or pet projects. It's a time that demands relentless focus and discipline."

Granholm recommends closing the Department of History, Arts and Libraries and ending state funding for the state fairs in Detroit and the Upper Peninsula. She also will ask the State Officers Compensation Commission to cut salaries for all state elected officials, including the governor, lieutenant governor, lawmakers and Supreme Court justices, by 10 percent. The pay cuts would take effect in 2011 after she and many other current officials leave office.

Granholm also asked lawmakers to pass legislation that would give homeowners 90 days to work out new financing for their homes before entering foreclosure. She also will ask the Michigan Public Service Commission to ban utility shutoffs this year for senior citizens and the medically fragile.

State Rep. Paul Scott, R-Grand Blanc, said he was pleased at the bipartisan spirit of Granholm's speech, but said he's waiting to see if her proposals have merit. He also said he was disappointed that Granholm didn't mention efforts to pass a statewide workplace smoking ban.

"I'm optimistic that we can work together," he said. "It sounds like a positive start."