Photo Courtesy: Colin Williamson
KAWARTHA LAKES-General Motors has announced a number of plants, including Oshawa, will be closed in response to “market-related volume declines in cars.” “In the past four years, GM has refocused capital and resources to support the growth of its crossovers, SUVs and trucks, adding shifts and investing $6.6 billion in U.S. plants that have created or maintained 17,600 jobs. With changing customer preferences in the U.S. and in response to market-related volume declines in cars, future products will be allocated to fewer plants next year.” said a press release Monday morning.
Assembly plants that will be unallocated in 2019 include:
Oshawa Assembly in Oshawa, Ontario, Canada.
Detroit-Hamtramck Assembly in Detroit, Michigan.
Lordstown Assembly in Warren, Ohio.
In a letter to employees at the Oshawa Assembly plant, obtained by Kawartha 411, Mike Trevorrow, GM Manufacturing Executive Director says “This decision has nothing to do with the performance of the Oshawa team, the Oshawa team has done everything they have been asked and the quality and business performance here at Oshawa is world class”
Trevorrow goes on to say managment will be working with Unifor the union to discuss this action. “And jointly determine how they will be administered under the terms of the contract.”
Mayor Andy Letham says it’s a devastating blow to the City of Kawartha Lakes. “We do have more than 1,000 people that we know commute dwon to the Oshawa area to go to work so them and their families, not just in our area but across the province it’s going to have a huge impact on the economy.”
At a press conference held by Unifor the unions on Monday afternoon, President Jerry Dias said “We will do whatever we can do to get them (GM) to reverse this decision.” Dias stated , “Its an important day, a problematic day.”
“It’s frustrating” Mayor Letham says.”It just felt like we were getting a bit of traction here in the Kawartha Lakes with growth and this announcement certainly doesn’t help anybody.”
However they Mayor says there isn’t much the City can do. “From a City perspective, it’s a decision above our heads,” Letham said. “I like to think that us making an effort in the municipality to get our house in order, to get our finances in order, gives us more flexibility going forward possibly with some programs or some opportunities for that entrepreneurship that we can help fund a little bit, just being in a better financial position as a City I think will give us options in the future.”
Component and propulsion plants that will be unallocated in 2019 include: Baltimore Operations in White Marsh, Maryland and Warren Transmission Operations in Warren, Michigan.
In addition to the previously announced closure of the assembly plant in Gunsan, Korea, GM will cease the operations of two additional plants outside North America by the end of 2019.
“These manufacturing actions are expected to significantly increase capacity utilization. To further enhance business performance, GM will continue working to improve other manufacturing costs, productivity, and the competitiveness of wages and benefits” says the press release.
Up to 1,000 people from the Peterborough Kawartha Lakes region work at the GM plant in Oshawa according to the City. The ripple effect could be hundreds more job losses in the area. The Armada Toolworks Plant in Lindsay supplies GM and many other sub contractors could be affected.
Oshawa Assembly Production will end in December 2019: wind down of flex car line with Chevrolet Impala and Cadillac XTS (one shift) and Oshawa Pickup line (2 shifts) will take place in the second half of 2019.
A total of 2,973 Oshawa Assembly jobs impacted (2,633 Hourly; 340 Salary/Contract). Total current GM Canada employment is 81,50 direct plus 300 contract. We have 1,000 On Star customer advisors in Oshawa and 450 GM dealers across Canada who employ 22,800 people
General Motors says the Oshawa Assembly plant has been operating at Half Capacity – running well below full capacity for several years and has “insurmountable” new product investment barriers, with the significant shift in buying patterns away from cars to favour trucks and SUVs, there are no available new vehicle programs to fill the gap at Oshawa Assembly.
Officials do leave the door open for this to change in the future. “Although our current product portfolio necessitiates this action in Canada, the industry is changing quickly and dramatically. Over the next year we will watch these trends, and if necessary adjust accordingly.” said Gerald Johnson GMNA Vice President Manufacturing and Labour Relations.
On Monday afternoon Dias stated “We aren’t giving up, let’s get this thing done.”
