Sept. 29, 2006 7:11 a.m.
By George Nelson
LORDSTOWN, Ohio -- Increasing sales in the government sector -- particularly of police vehicles -- is playing a growing role in turnaround efforts at General Motors Corp.
Jerry Leanderson, fleet account executive for alternative fuels and government with GM's fleet and commercial operations, joined management and labor leaders Thursday at GM's Lordstown complex for a media event to recognize efforts by local governments to purchase GM vehicles.
The event itself was unusual, Leanderson observed.
"Here we have the plant reaching out to the community to express a level of gratitude for buying our products. I'm not aware of this going on anywhere else in the country," he remarked.
The Lordstown plant produces the Chevrolet Cobalt and the Pontiac G5. Plant manager John Donohoe noted that demand for the Cobalt is high, with an average field supply of 36 days compared to 60-62 days normally. "It's fantastic being in this kind of position," he said.
"What a great car we're producing right here," Leanderson affirmed, citing the Cobalt as another step in GM's turnaround. The Cobalt is "getting accolades in all of our markets," rated as a best buy and exceeding its sales objectives, he noted.
As representatives of GM and local governments addressed the audience at the program, flanking them behind the podium were two GM vehicles adapted for the police market, both Chevrolets: a Tahoe SUV and an Impala. GM has built 15,000 Impalas for police use, Leanderson reported.
Communities such as Lordstown, Howland and Austintown have been incorporating GM vehicles into their fleets for years, and the Mahoning Valley's two largest cities, Youngstown and Warren, recently began purchasing GM vehicles for their police departments.
Success here is going to depend on the partnerships formed, whether between the public and private sectors and management and labor, or among communities, Youngstown Mayor Williams remarked. He also noted that GM has invested in this community for several decades, most recently its participation in the naming rights agreement for the city-owned convocation center, now known as the Chevrolet Centre.
According to Williams, the city has purchased 11 Impala police cruisers. "We today just found out about the Chevy Tahoe police package, so I think that's something we will also look to incorporate into the fleet in the coming years," he said.
Warren Mayor Michael O'Brien said his city purchased five Impalas this year for the detective division, replacing some Dodges and Fords, and the police department also is looking into acquiring cruisers for the uniform division next year.
"General Motors has been here for 40 years. They have made a contribution to all aspects of the community in the Mahoning Valley, and I think it's important that we in turn, when at all possible, reinvest back into General Motors," O'Brien said.
Sales of Impalas to police departments are increasing because of reliability and increased acceptance of front-wheel drive, Leanderson said. A county sheriff he spoke with recently told him that fuel and maintenance costs for his department's Impalas both significantly lower, he related. Departments are also recognizing that front-wheel drive is an advantage, particularly in the show belt.
Leanderson also touted GM's efforts to develop alternative fuel vehicles, noting the 2007 Tahoe on display at the event was designed to run on E85 ethanol. During recent tests by the Michigan State Police, a Tahoe running on E85 outperformed the other one running on conventional gasoline, due to the high octane in the E85 fuel, he said. GM will begin producing an E85 Impala for the 2008 model year.
"There is going to be E85 availability here in the state of Ohio and here in this area," he said, pointing to a number of initiatives under way in the state including a bill signed by Gov. Bob Taft to encourage the development of the necessary infrastructure.
Williams said he was interested in shifting to E85 to fuel city vehicles if it becomes available. The closest E85 facility is in Wooster, he said. "Obviously that's impractical, but with the GM plant here cranking out these E85 vehicles, I think it would only make sense that at some point in the not-too-distant future," the mayor remarked. "It that moves into this area we certainly would be one of the first to look into the possibility of E85."
Youngstown Police Chief Jimmy Hughes said he looks forward to incorporating the Tahoe into the department's fleet. Youngstown police are using the Ford Explorer as their SUV. "I believe first of the year we'll have one or two [Tahoes] in the budget for sure," he said.
O'Brien called on Graham and Jim Kaster, president of UAW Local 1714, to lobby City Council members to convince them the mayor should be driving a Chevrolet Cobalt, which the Lordstown plant produces.
Williams set his sights higher, noting that when he was elected mayor he was given the keys to a 6-year-old vehicle with 125,000 miles.
"If you guys have got an extra 'vette or a Tahoe laying around, I'll squeeze myself into that," he joked. "I will sacrifice my 125,000 mile vehicle for the betterment of this community."
Copyright 2006 The Business Journal, Youngstown, Ohio.