GM to make major announcement about its global operations Monday-union

Roman Schwartz
November 30, 2018

"I had an opportunity to speak to the Prime Minister this morning".

In 2005, GM cut 3,750 jobs with the shutdown of the Oshawa No. 2 plant and the elimination of a shift at its other auto line.

The corporation will reduce the number of salaried employees by laying off 10,000 workers. "We supported GM years ago when they were in trouble".

The union president suggested Monday Canada should slap tariffs on Mexican cars to protest GM's move to shelve production in Oshawa, which has been home to vehicle manufacturing since 1908. "As we're transitioning to the new truck architecture", she said. "They didn't ask for anything", Ford said.

"We'll do everything we can to help the families affected by this news get back on their feet".

President Donald Trump said he was "not happy" with the decision and spoke "very tough" with GM CEO Mary Barra about the moves.

Minister of Innovation, Science and Economic Development Navdeep Bains also expressed his disappointment about the announcement.

"Not to me. But it still hurts and I really feel for the younger people who have families and mortgages".

GM cited changing customer preferences in the US, mainly the rapid decline of sedan sales as consumers opt for compact crossovers and SUVs.

In a statement, Unifor, the union representing auto workers at the plant, said they have not heard "complete details of the overall announcement" but were told that no cars are set to be assembled at the plant past December 2019. "Obviously incentives by themselves don't keep a vehicle plant open", said the executive, speaking on condition of anonymity because of the sensitivity of the matter. GM said it will no longer make those cars.

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GM said the closure affects a total of 2,973 assembly line jobs.

The GM plant in Oshawa won't be fully shuttered until the end of 2019 but officials with the automaker say that some employees will be laid off as early as this summer as production begins to "wind down".

On top of the previously announced closure of the assembly plant in Gunsan, Korea, GM will also cease the operations of two additional plants outside North America by the end of next year. Last month, GM rival Ford Motor. "I think GM is just trying to sort of get ahead of what it sees as an inevitable downturn".

"So there are just a lot of questions about where the market is going, whether sales have peaked", Zarroli reported.

The decision was part a global restructuring for the company that also includes winding down production at four USA assembly plants and other cuts to free up US$6 billion for investments in the new initiatives.

"GM didn't build #Oshawa". The Impala is built at the GM plant in Oshawa.

Conservative MP Colin Carrie, who according to his website spent his summers as a youth working in the Oshawa plant, called the reports "very concerning" and promised to "look further into the situation".

In a press release, GM touted its "transformation for the future", focused on new electric and self-driving vehicles, while only mentioning the plant closures in short bullets.

The decision, announced Monday, will impact Detroit-Hamtramck Assembly in Detroit, Lordstown Assembly in Warren, Ohio, and Oshawa Assembly in Oshawa, Ontario. Also affected are transmission factories in Warren, Michigan, as well as Baltimore.

When the federal and provincial governments bailed out the auto industry in 2009 at a time when bankruptcy appeared imminent, the deal required the Big Three to keep 16 per cent of its North American production in Canada ― a requirement that ended in 2016.

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