“GM’s future now seems assured,” said Rep. Sander Levin, D-Royal Oak. “But it’s coming at a real price for families and communities.”

Michigan is likely to be among the hardest hit, given the company’s concentration in the state. Sen. Carl Levin, D-Detroit, was given the list of affected plants in Michigan late Sunday night, his office confirmed. But officials were waiting to announce the list until workers could be informed Monday morning.

Lawmakers elsewhere are worried as well. Sen. Lamar Alexander, R-Tenn., said he was “doing everything I can” to save the Spring Hill, Tenn., plant that is home to GM’s Saturn unit. Sen. Tom Carper, D-Del., warned that closing the assembly plant in his state would further reduce the company’s already shrinking political clout outside the industrial Midwest.

“It’s a very sad day obviously for Michigan and for the country,” said Rep. Thad McCotter, R-Livonia.

McCotter criticized the Obama administration’s auto task force for pledging early in its existence to try to keep both companies out of bankruptcy court.

“What we ended up with was prepackaged bankruptcy for both GM and Chrysler,” he said. “To hold out hope (that bankruptcy could be avoided), what they should have done was just told us that’s what it was.”

Despite the worry, Michigan lawmakers said the news could have been worse. With an additional $30 billion in federal aid, the company will emerge from bankruptcy better able to compete, and negotiations with the United Auto Workers union lessened the impact of production cuts in the United States, they said.

Sen. Levin pointed to a GM pledge to increase the share of its total auto production located in the United States to 70 percent, and the promise to build a new, small car at one of three assembly plants the company will idle.

“That’s a major change” from the company’s original plans, he said.

“There was some major discussions” on that issue, Rep. Levin said. “I think they made some necessary changes.”

Both Levins said they will keep watch Monday on U.S. bankruptcy court in New York for a decision to approve Chrysler’s plan to emerge from bankruptcy — both for what’s at stake for Chrysler and what it means for GM.

“That story coming the same day (as GM’s filing) would really reinforce the point that it’s not an end, it’s a beginning,” Sen. Levin said.

None of the lawmakers would confirm that GM will decide to leave its headquarters in Detroit, but Sen. Levin, who opposed a possible move to Warren, said he “can confidently predict good news on that.” McCotter said he was all but certain GM would remain at the Renaissance Center.

“It would have been a cruel irony for GM to go into bankruptcy and on the same day leave the RenCen, which is a symbol of rebirth for Detroit,” McCotter said.

The automaker plans to use much of the $4.1 billion in financing that is keeping it going during bankruptcy to pay outstanding bills to parts makers and complete the transfers quickly.

Chrysler is working feverishly to emerge from Chapter 11 bankruptcy before that funding, known as debtor-in-possession financing, expires around the end of June, 60 days after the company filed for bankruptcy on April 30.

On Friday, Chrysler filed with the bankruptcy court an initial list of 1,200 suppliers it wants to continue working with when the new company emerges from Chapter 11 this summer. Chrysler has about 1,300 suppliers, including hundreds in Michigan, and spends $36 billion annually.

The documents list how much Chrysler believes it owed each company before filing for bankruptcy. While such liabilities usually are wiped out in bankruptcy, Chrysler wants the debts paid off before the new Chrysler-Fiat assumes the individual contracts. The automaker is offering to pay 40 percent now and 60 percent post-bankruptcy.

The list is not yet complete. Priority was given to production suppliers for when Chrysler starts building vehicles again. Nonproduction suppliers will be added, as well as some bigger suppliers with more complicated accounts that are still being sorted out.

The list must be finalized before Chrysler exits bankruptcy.

Suppliers were sent letters Friday with forms they must complete to accept the terms. Once returned, payment should be within days, Chrysler officials said. Failure to object assumes agreement.

Objections must be filed within 10 days and a hearing has been set for June 4 before U.S. Bankruptcy Judge Arthur Gonzalez to settle any disputes.

Tom Spillane, a bankruptcy lawyer with Foley & Lardner LLP in Detroit, said suppliers he represents are happy to be on the list, and are now going over the figures. But there are indications that some of Chrysler’s figures could fall short.

In some cases it could be that the total owed to a company does not account for work done by a subsidiary or may not reflect the cost of tooling that has not yet been audited by Chrysler and reflected in the invoice. Those who file objections face delayed payment, Spillane said.

Chrysler also is asking suppliers to stop participating in a U.S. Treasury Department supplier aid program that provides $1.5 billion in funding to guarantee or speed up payments for Chrysler and General Motors Corp. suppliers, even if the automakers are in bankruptcy. To participate, suppliers had to pay a fee of up to 3 percent of the bills.

Scott Garberding, Chrysler’s chief purchasing officer, met with suppliers Thursday and told them they will get a better deal if Chrysler pays them.

Suppliers also learned that Chrysler will no longer approve invoices to be paid under the Treasury program.

Spillane said that policy is angering some suppliers and cuts off aid for companies not yet on Chrysler’s list.

Treasury money is paid in one lump sum whereas Chrysler will not pay the final 60 percent until the sale of all assets to the new Fiat-run automaker is complete. A hearing to finalize that sale is set for May 27.

“Up to this point, the Supplier Support Program has served a critical function of ensuring suppliers’ receivables will be paid,” Garberding said, but suppliers will be “economically better off being paid through the bankruptcy court process.”

“Thank you for choosing Michigan!” Gov. Jennifer Granholm told Ford executives at an event announcing the new vehicle, as well as a $550-million investment by Ford to design the new Focus and retool its Wayne factory complex to produce both the gasoline-powered and electric version of the vehicle.

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“It is a balm for our soul in tough times.”

The automaker said it plans to produce 2 million vehicles annually worldwide on the new compact car platform.

Production of the gasoline-powered model is to begin late next year in Wayne.

However, the cancellation doesn’t necessarily mean the city of Flint will miss out on the engine contract. “Our commitment to the city of Flint hasn’t changed,” GM spokeswoman Sharon Basel said. “Right now we are looking at all possible options and scenarios.”

Basel hinted that GM could use an existing structure to produce the 1.4L four-cylinder earmarked for use in the Chevy Cruze and Volt. However, GM gave no time table for the project, which could put both vehicles’ scheduled launch dates in jeopardy.

Visit www.CruzeChat.com for details

Legislators say the United States today has no large-scale production plant for the lithium-ion battery, the technology General Motors Corp. expects to power its touted Chevrolet Volt. Most battery technology is being developed in Asia.

“It is imperative that Michigan possess this technology to keep Michigan the center of car manufacturing,” said Sen. John Pappageorge, a Troy Republican.

Before adjourning this month, the Legislature approved tax credits worth up to $335 million depending on how many battery packs are assembled here, production expenses and other factors. Granholm is expected to sign the legislation.

Lawmakers were motivated to act at a time auto demand has dropped due to the ailing economy and the credit crunch, which has made it tougher for some buyers to get financing. GM and Chrysler LLC recently secured a $17 billion lifeline from the federal government.

The same week lawmakers voted for the credits, GM announced it was delaying construction of a Flint engine factory to conserve cash. The plant eventually will make 1.4-liter engines for the Chevy Cruze and the Chevy Volt plug-in electric car, key products in the century-old automaker’s bid to turn itself around after relying on highly profitable truck and SUV sales.

“That’s just temporary,” Granholm said. “They are going to produce the Volt. … The battery that is going to power the Volt — we intend that to be made in Michigan.”

GM could make a decision early next year. The state also is working with a cell manufacturing company to build a facility in Michigan.

The governor says the rechargeable lithium battery not only will store energy in people’s cars but could be used for their homes and businesses, too.

“All of that we want to make a big play for Michigan,” Granholm said. “We want it to be an American solution produced by American workers.”

Things are moving quickly on the battery front.

Fourteen U.S. technology companies and a national laboratory this month created an alliance to seek billions in federal funding for construction of a plant to make advanced vehicle batteries. The U.S. will lose out on high-tech jobs if Japan, South Korea and other countries continue dominating battery development, according to the new coalition.

Michigan’s tax incentives are similar to those offered the film industry earlier in 2008. To entice moviemakers to choose Michigan over competing states, Granholm and legislators created refundable tax credits for in-state movie production expenses.

Giving tax breaks is nothing new, with the state often deciding to forgo tax revenue in exchange for economic investment and job creation. But refundable credits go further. They are more like a rebate for production expenses and can require the state to cut checks to businesses if the credits exceed their tax liability.

Refundable credits have been castigated by critics such as state Sen. Nancy Cassis, a Novi Republican who has said Michigan would be more attractive if it provided “broad-based tax relief … benefiting all, rather than just a selected few.” The criticism mostly has been ignored. Senators scaled back the battery bill’s potential price tag by nearly $200 million before voting 31-3 to pass the legislation. It was approved 94-0 by the House.

Backers say Michigan just cannot afford to miss out on a vehicle battery market that could total $50 billion by 2020, and call the tax incentives a “down payment.”

As the Democratic and Republicans gathered for their party meetings, the party buses were not bringing cheerleaders, but VIP’s and lobbyists from the automakers. North American automakers that is. Automakers that are struggling to retain market share, profitability and sales.

Sales are down 20% across the board between the Big Three for the past quarter, which in fact should be called the Declining Three, with sales numbers outpaced by Asian brands.

It is no easy task to maintain a company with unionized workers, retired workers and soaring supply costs. Transportation costs are up, so are health benefits and overhead utility expenses. All of the forementioned would not be a problem if sales would pick up.

Detroit is asking the feds for $50 billion in low interest loans to re-vamp the product assortment and meet fuel efficiency standards set out by CAFE. Asian competitors do not have to worry about such problems, as their balance sheets seems healthy, which guarantees them low interest loans from common lenders such as banks. The Big Three on the other hand does not have the luxury of having a clean balance sheet, therefore will need government backed loans in order to keep interest costs under control.

Thankfully, both Obama and McCain need votes in Michigan and Ohio, therefore both parties are behind the proposal to fund the automakers.

All eyes are on Congress to see if they can raise the required $50 billion.

It is very interesting that GM has just recently started offering buyout and retirement incentives while this has been a very popular practice over at Ford.

GM is not going to try to replace all of the workers with fresh hires, but according to the company some recently laid off workers, as well as selections from it’s corporate job bank will be hired to replace those leaving.

The highest percentage of those workers who have taken the buyout packages were from the Flint area. I wonder if a second edition of a certain movie is in order depicting the gradual erosion of Flint by the big bad corporate machine.