VIDEO: GM to close Oshawa plant, four U.S. plants in massive reorganization push

Company to focus on electric and autonomous vehicle programs

Workers from Oshawa’s General Motors car assembly leave the plant, Monday Nov 26 , 2018. (THE CANADIAN PRESS/Eduardo Lima)

General Motors will close its production plant in Oshawa, Ont., along with four facilities in the U.S. as part of a global reorganization that will see the company focus on electric and autonomous vehicle programs.

The auto manufacturer announced the closures as part of a sweeping strategy to transform its product line and manufacturing process to meet changing demand in the transportation industry, a plan that it said will save the company US$6 billion by the year 2020.

“This industry is changing very rapidly, when you look at all of the transformative technologies, be it propulsion, autonomous driving… These are things we’re doing to strengthen the core business,” GM chief executive and chairwoman Mary Barra told reporters Monday. “We think it’s appropriate to do it at a time, and get in front of it, while the company is strong and while the economy is strong.”

GM also said it will reduce salaried and salaried contract staff by 15 per cent, which includes 25 per cent fewer executives. The US$6 billion in savings includes cost reductions of US$4.5 billion and lower capital expenditure annually of almost US$1.5 billion.

GM’s shares in New York jumped as high as 7.8 per cent to US$38.75. The automaker’s shares were trading at US$37.95 by the early afternoon, their highest level since July.

Unifor Local 222 shop chairman Greg Moffat said Monday the plant is not closing “without the fight of our lives.”

READ MORE: Uber suspends self-driving car tests after death

The Oshawa Assembly Plant employs 2,522 workers with Unifor Local 222, according to GM’s website. Production began on Nov. 7, 1953, and in the 1980s the plant employed roughly 23,000 people.

GM is also closing the Detroit-Hamtramck Assembly plant in Detroit and the Lordstown Assembly in Warren, Ohio in 2019. GM propulsion plants in White Marsh, Md., and Warren, Mich., are also due to close as well.

The automaker did not say the plants would close, but used the term “unallocated,” which means no future products would be allocated to these facilities next year.

The closures come as North American automakers feel pressure from U.S. tariffs on imported steel and aluminum. Last month, GM rival Ford Motor. Co. reported a US$991 million profit during its third quarter, but said tariffs cost the company about US$1 billion. Of that amount, US$600 million was due largely to U.S. tariffs on imported steel and US$200 million from retaliatory tariffs imposed by China on American vehicles, Ford said.

The restructuring announcement also comes after Canada and the U.S. reached the United States-Mexico-Canada Agreement to replace the North American Free Trade Agreement, after months of strained negotiations.

Under the new trade deal, 40 per cent of the content of automobiles must be produced by workers earning at least US$16 per hour to qualify for duty-free movement across the continent. The agreement also stipulates that 75 per cent of the automobile’s contents must be made in North America in order to be tariff-free.

Meanwhile, GM’s Barra said Monday the company will be investing in autonomous and electric vehicle technology.

The Canadian Press

Like us on Facebook and follow us on Twitter

Just Posted

Fernie Public Works facility hosts grand opening.

The City of Fernie held the grand opening of its new $6.9… Continue reading

Ghostriders climb Rockies in nail biting home victory

The Ghostriders took a nail biting 6-5 victory at home against the… Continue reading

Regional winter road maintenance operations underway

Mainroad East Kootenay Contracting shifting into winter as snow season fast approaches

Steelmaking coal experts optimistic on price despite emerging green-tech

Steelmaking coal is experiencing a moderate recovery after prices dropped to US$130/t… Continue reading

Columbia River Treaty: ‘It is going to get tough’

B.C. negotiator tells Nelson meeting that talks are cordial, so far

VIDEO: UBC exchange students offered $1,000 to help with leaving Hong Kong

The university said 31 of its students were attending four universities in Hong Kong

Woman calls 911 to say she was late for train, asks Ontario police for ‘emergency ride’

Peel Regional Police received more than 180,000 improper calls so far this year

It could take you 218 years to save up for a house in this B.C. neighbourhood

It would take 27 years in the most affordable city in the Lower Mainland

‘Actors can play any roles’: Debate over ‘colour-blind’ casting after Victoria lawsuit

Tenyjah Indra McKenna filed a complaint over racially-motivated casting

Infants more vulnerable to measles than previously thought: Canadian study

Babies typically don’t receive the measles vaccine until they are 12 months old

Shatner, Obomsawin among 39 inductees to Order of Canada today

Shatner is being given one of Canada’s highest civilian honours for his 60-year career

John Mann, singer and songwriter of group Spirit of the West dead at 57

Mann died peacefully in Vancouver on Wednesday from early onset Alzheimer’s

Teacher tells B.C. Supreme Court that student was ‘happy’ to watch smudging ceremony in classroom

Case being heard in Nanaimo over indigenous cultural practice in Port Alberni classroom

VIDEO: B.C. high school’s turf closed indefinitely as plastic blades pollute waterway

Greater Victoria resident stumbles on plastic contamination from Oak Bay High

Most Read