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)

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

NIC’s new president Lisa Domae assumed the role of president on April 12. Domae has worked at NIC since 2000, most recently as the executive vice president, academic and chief operating officer. (SUBMITTED PHOTO)
New North Island College president launches draft strategic plan

Lisa Domae assumed the role of president on April 12, 2021

Blueprints for the seniors housing project in Port Hardy. (North Island Seniors’ Housing Foundation photo)
Port Hardy seniors housing project could be approved any day now

The NISHF has been working on plans for seniors’ housing in Port Hardy for four years

Dr. Prean Armogam has lived and worked in Port McNeill for 15 years. (Bill McQuarrie photo)
McQuarrie: Island Health needs to keep Dr. Armogam working in Port McNeill

‘Island Health’s apparent intention is to not enter into a contract for Dr. Armogam’s services’

Email letters to the editor to editor@northislandgazette.com and we will publish online and in print.
LETTER: Port McNeill councillor responds to May 12 North Island Rising column

‘council raised residential taxes for no reason and I stand by that statement’

The seasonal Search and Rescue program will run between May to September. ( File photo/Canadian Coast Guard)
Coast Guard Inshore Rescue Program starting up next week

Teams have protocols in place to ensure COVID-19 safety

An avalanche near Highway 1 in Glacier National Park. Avalanche Canada will benefit from a $10 million grant from the B.C. government. (Photo by Parks Canada)
Avalanche Canada receives $10-million grant from B.C. government

Long sought-after funds to bolster organization’s important work

More “strings of lights” were seen on May 15, 2021, in night sky over Vancouver Island. (File photo)
Sicamous RCMP Sgt. Murray McNeil and Cpl. Wade Fisher present seven-year-old Cody Krabbendam of Ranchero with an award for bravery on July 22, 2020. (Contributed)
7-year old Shuswap boy receives medal of bravery for rescuing child at beach

Last summer Cody Krabbendam jumped into the lake to save another boy from drowning

B.C. Health Minister Adrian Dix and provincial health officer Dr. Bonnie Henry update the province’s COVID-19 vaccine program, May 10, 2021. (B.C. government)
B.C.’s COVID-19 infection rate stays below 500 a day over weekend

14 more deaths, down to 350 in hospital as of Monday

Royal Bay Secondary School’s rainbow crosswalk was vandalized shortly after being painted but by Monday, coincidentally the International Day Against Homophobia, Transphobia and Biphobia, the crosswalk had been cleaned up and students had surrounded it with chalk messages of support and celebration. (Zoe Ducklow/News Staff)
B.C. high’s school’s pride crosswalk restored following ‘hateful’ graffiti attack

Hate terms, racial slur, phallic images spray-painted at Greater Victoria high school

Terrance Mack would have celebrated his 34th birthday on May 13, 2021. Mack’s family has identified him as the victim of a homicide in an apartment on Third Avenue in Port Alberni sometime in April. (SUBMITTED PHOTO)
Family identifies Ucluelet man as victim of Vancouver Island homicide

Terrance Mack being remembered as ‘kind, gentle’ man

Nathan Zuk had left his mother’s residence in Whaletown on Cortes Island in mid-December 2020 in a 14’ skiff rowboat and headed to an unknown location near the Pryce Channel, Deer passage, or Toba Inlet. Photo courtesy RCMP
RCMP need help finding man who set off from Cortes Island in 14-foot rowboat

Nathan Zuk left in December, may have been last seen in Toba Inlet approximately three weeks ago

Discarded construction materials make up nearly 40 per cent of all materials sent to the landfill from sources in the city of Victoria. (Zero Waste Victoria)
Victoria looks to curb waste by turning demolitions into deconstructions

Community drafting bylaw forcing developers to be better at salvage and recycling

Emergency service workers at the collision scene along Highway 4 in Hilliers on Sunday, May 16. A motorcyclist was airlifted to hospital by BC Air Ambulance and later died. (Collin C photo)
UPDATE: Motorcyclist dies from injuries sustained in Mid-Island highway collision

BC Highway Patrol says impairment not a contributing factor in crash

Most Read