President and managing director of General Motors Canada, Stephen Carlisle, said Wednesday the future of the automaker’s Oshawa plant won’t be decided until “well into 2016.” According to the National Post, this paints a gloomy picture of the factory’s fate, as production commitments made by GM to the Canadian government will be expired by then, giving them more flexibility to close production lines and lay off workers.
Production of the Chevrolet Camaro will move from Oshawa to Lansing, Michigan this year in time for the sixth-generation model to be built, while Oshawa’s consolidated line, which builds the Equinox and Impala, will be closed down in 2016. GM has yet to announce production of a new vehicle at the plant, and it could be at least a year until they drop any info in regards to its future.
“In any business, especially one as large and complex as an automotive company, there are detailed planning processes before investment and product decisions are made,” Carlisle said in a statement Wednesday.
“We must pay attention to how dramatically economic factors are fluctuating these days — some of which we can control or predict more than others. We are ‘doubling down’ on efforts to find efficiencies and we will be working with all our partners to address issues and build on our strengths,” he said.
Jerry Dias, president of Unifor, the union representing Oshawa plant workers, said GM needs to make a decision before 2016. According to him, the union needs “short-term solutions,” and GM needs “to make a commitment, they need to do something to settle everybody down, our members as well as the two levels of government.”
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And the race to the bottom continues…Ford and GM are making substantial investment to their facilities.
The best thing that the CAW — er UNIFOR — could do would be to re-open the contract this fall after the UAW contract is settled and make sure that they are competitive on all fronts — and not relying on exchange rate to keep them competitive.
Otherwise, the last one out turn off the lights.
The UAW here since the bail out has been a lot more cooperative and some plants were even before that as they were facing closure.
The coming deal this year with the UAW will show if they UAW really means to work with the automakers or not.
The CAW on the other hand has given GM a lot of grief over the last couple years and not really done much to work with them.
The CAW needs to understand that GM has too many plants and because of this they can farm new products around to what plant and local UAW will be willing to work with GM on a contract that benefits all and not just one side. It is a deal that you work with us or someone else will and who ever will gets the work.
The CAW is in a place the future is in their hands. If they are willing to work with GM they will be rewarded with new product if not GM can build them anywhere else the Union is more cooperative.
One only needs to look at how the Lordstown plant is working. It is one of the largest GM plants and were close to closing. But the UAW before the bailout changed and has learned to work with GM and because of that they have been given a top product and a lot of work. The plant is not the most efficient but with the union working with them they can make money there. At this point all parties are wining.
The CAW if they choose a hard line they will lose it all.
There is also the fact that Canadians have not been buying GM products. Why make the products in a country that won’t buy the product?
It is the same way in Australia.
That matters little as they just put them on a train and send them to the USA anyways in this case. Canada is not an isolated market as Australia.
GM in the past will even bring unsold cars back to the USA if the demand is there as I own one of these cars now.
Pontiac also brought back the Parisian when the smaller Bonneville flopped in the early 80’s.
The key is GM will make cars where it is most profitable. The point of making cars is to make a profit as if you fail to do this you lose stock value and then you lose investment money for new products.
A good relationship with the Union can be profitable or both company and union but in the past both sides got too greedy at times and both sides lost. I hope they all have learned.
But with more plants GM can build anywhere in NA and the CAW just needs to learn what the UAW has learned. Now weather they keep this lesson in mind on both sides remains to be seen.
Hell they build a ton of cars in Mexico but GM is not selling a ton there as so few people outside the large metro areas can afford new cars.
One other factor is many automakers went north to avoid the CAFE issues on cars built in America as the full size and V8 cars that went North Counted as Imports. This is not as much a factor any longer since we have less and less V8 or fuel efficient cars.
The Canadian Market is GM’S fifth largest in terms of sales, last time I checked Mexico didn’t buy many GM cars but they keep getting work …….and low quality work for that matter. The Oshawa plant is one if not the most efficient in terms of quality and productivity and has always been the bench mark for other facilities to measure up against . If GM decides actually does decide to close Oshawa it would be one of the most stupid mistakes that GM has made to date and they have made a lot lately. The facility in itself has suppliers on site and one of the best paint shops in the world. The union has negotiated a new hire agreement that is considerably competitive. Truthfully I can’t believe they are even discussing this it’s a no brain – er companies just don’t close their crown jewel .
This is not about who buys the cars it is about what plant local is willing to work a reasonable agreement with GM.
Mexico the people there build cars as well as any other GM plant and the cost are lower. The Paseo goes farther and the people need the work.
This is about business not anything else.
GM got themselves in trouble caving into the UAW for years . With increase competition and the loss of market share they could no longer fun the pensions and health car they agreed too years ago. They do not want to make that mistake. Many of these deals were cut just to keep production going and not thinking about the day it would catch up to them. Most of the people who made these deals were long gone by the bail out.
The fact is the best GM plants to the worst plans are rated by the slimmest of margins. So don’t get too high and mighty over the crown jewel idea.
The bottom line is the new product is shopped to several plants and the union willing to do it with the most reasonable deal will get the work. It is call competition. If the CAW does not want to compete they will lose.
This is not a GM decision as the plants future lies with the CAW and how they will work with GM or not work with GM.
With GM having the ability to build different models in their more flexible assembly plants , they don’t need some of their older plants anymore . Plus it is easier to adjust their production if one car starts to have a high inventory and replace that model with one that may be selling better . It costs alot to idle a plant because of a high inventory .
In the past the CAW and GM haven’t had the same relationship as the UAW and GM do . I think the UAW isn’t as radical an orginization as the CAW . At times when you might have different assembly plants both bidding for the same investment ( product ) , GM is going to give the plant that is more willing to work with them instead of threatening to strike everytime they don’t get their way . JMO
This plant is the 2nd highest quality plant next to BMW in North America. And GM sells plenty of cars here in Canada. Infact their sales are up big time.
I have always been extra loyal to GM being that much of my family has or does work there. Years ago, when they closed a big chunk of the plant, they turfed a bunch of very hard working , and extremely loyal workers in management who had no protection like they were garbage. I remember it broke my Dad’s heart.
I sincerely hope they do not do that again to a community who lives and breathes GM. If so, my next car will not be a Cadillac, that is for damned sure.
Plant quality at GM is nearly equal. The differences are very small and quality is up on all GM models.
This just comes down to the point GM can build these cars anywhere and today they are smart and show the new product to several plants. The plants and the Unions that make the best deal get the work.
This is not a GM deicision it is a CAW choice. If they are willing to make a deal they will get work if they are not willing to cut a better deal than another union then they lose.
If you want unions they have a lot of good things to offer but you have to also to be willing to take the crap that comes with being in a union. It is not all sunshine and lollipops.
GM will reward unions that work with them and will close plants that the unions don’t work with them. This is why Michigan and Ohio plants are thriving after losing so many jobs in the past that went to Canada and Mexico. They got a second chance and are now making the best of it.
Canada lost much of the advantages they once had and now have to make a better deal than they have in the past.
My last Oshawa car as good but not built any better or worse than my last three GM cars from elsewhere.
Sorry but this is the part of the business that sucks. Companies are here to make money not employee people. You must make yourself competitive anymore as others want your job as much and in some cases more than you. You just can’t take it for granted you will not have to work to keep it. Cold but just the way things are.
GM gave the unions what ever they wanted in the past and it bankrupted them as they could not sustain the pay, the medical and the retirement when they slowed down and they lost market share. They are making sure that does not happen again. If it does they are done this time.
I love the 2 thumbs down from the fanboys. Everybody gets it wrong sometimes, and GM gets it wrong here. But there is no talking to fanboys. And Scott you make some good points, but the CAW has made some serious concessions. When my Dad was in management alot of his greys came from dealing with union monkeys. But my Brother and Sister in law work the line, and I know for a fact they work their asses off these days, and make a damned good product.
I think GM absolutely has to keep a presence in the US with MFG for political reasons. But we are seeing massive investments in Mexico and Asia right now. They will move it all there to the max. And as for Canada, the “thanks for the bailout when we were F#$ed, but see ya.” attitude would the last straw here, and for a lot of folk I know.
Go to Oshawa area. GM is like a hallowed heroic figure. It is part of every kids lexicon. ” The motors” . I know for a fact some of the other plants getting lots of work have been having real issues. This is from high up friends from Michigan. If the plant did not produce here, I would say too bad. But that is not the case. This is politics and it stinks.