A settlement between the United Auto Workers and General Motors Corp. has revived hopes that the Janesville assembly plant could be reopened a new production line to make small cars.

The settlement includes a provision that GM has agreed to keep one factory and one stamping plant for small cars. The agreement was reached after the UAW raised concerns about GM's plan to import small cars from China.

Leaders from UAW Local 95 weren't available for comment.

But the union's former president, Assembly Speaker Mike Sheridan (D-Janesville), said in a statement that he would try to convince GM that the Janesville plant should be selected for a new production line.

The discussion of Janesville comes less than a week after an auction was held to sell equipment from the shuttered factory. The factory stopped making SUVs in December and ended production of medium-duty trucks in April.

A summary describing the latest settlement between the UAW and GM said the company was committing to reopening one unidentified assembly plant and one stamping factory if demand warrants.

GM plans to close 14 more factories as part of its previously announced effort to shutter 16 plants, shedding 21,000 jobs. Two of the closures have been announced: an engine plant in Massena, N.Y., and a parts plant near Grand Rapids, Mich.

Then-GM Chairman and Chief Executive Rick Wagoner had closed the door on reopening the Janesville factory this year. But Wagoner subsequently resigned at the request of the Obama administration.

Auto industry observer Brett Smith at the Center for Automotive Research in Ann Arbor, Mich., said it was clearly a "long shot" for Janesville to be considered for a new production line.

Jun.2  2009