With General Motors’ impending negotiations with the United Automobile Workers union later this year, coupled with the comparative expense of manufacturing in Canada, the automaker has decided to wait until 2016 before announcing any new cars that might be delegated to its plant in Oshawa, Ontario.
Since the plant is scheduled to lose the Chevrolet Camaro later this year, analysts fear that the plant may be at risk for closure soon.
This story comes to us from The Detroit News, who also cite the available capacity in existing American plants, and the $3.6 billion investment planned for manufacturing in Mexico over the next 4 years, as other causes for concern. But so far, that decision has yet to be made. GM Canada President Stephen Carlisle said in a statement that General Motors is committed to Canada.
Said Mr. Carlisle in a statement: “We are going to be careful and are not expecting to be deciding on any major new mandates or investments in Oshawa until well into 2016.” That’s largely because GM still has to complete negotiations with Canada’s own auto workers union, Unifor.
But officials from the union, as well as some Canadian public officials, are refusing to be strung along. They are pushing to keep the plant humming into the foreseeable future, and insisting that GM make a decision on the matter sooner rather than later. Unifor President Jerry Dias said that “it’s about time they made a longer-term commitment here.”
On Oshawa’s side is the devaluation of the Canadian dollar since GM first reinvigorated the plant in 2009/2010; at 80 cents on the dollar, Dias says that production in Canada is now cheaper than in the US. Also on Oshawa’s side is that the governments of Ontario and Canada contributed approximately $10 billion to the automaker’s bailout in 2009, in exchange for concessions like keeping at least 16 percent of its production in Ontario through 2016.
Granted, General Motors will have met or exceeded that requirement regardless of whether the plant is closed after 2016. The automaker has said that the one-shift line which currently produces the Chevrolet Equinox and Impala Limited will most likely end in 2016. The second, three-shift line, which produces the Camaro and three other GM vehicles, is scheduled to lose the Camaro to the Lansing Grand River Plant later on in the year.
Comments
Ontario doesn’t offer a good climate for business. Taxes and cost of utilities are too high compared with other jurisdictions.
The business climate doesn’t sound good . Having the head of the CAW ” demanding GM make a decision sooner rather than later ” won’t cut it anymore .
That is what I have been saying on this topic.
The CAW has to realize they are now going to have to compete for work as GM has too many other plants willing to work with them. And they can build product just as good as they will also get the investment in new line equipment and paint booths.
do you want quality or crap?
So only Canadians can build cars?
I now have 4 new GM vehicles, two 2008, 2012 and 2015. One built in Mexico, one in Missouri one in Ft Wayne and one in Canada. The quality was all the same and the only one that had to go back to the dealer was the Canadian one for a Mirror memory issue.
The only difference in quality is the materials get better for the interiors and other bits with the later models. That has nothing to do with the build quality of any of the vehicles.
The assembly line process is the same at nearly all plants and it takes little skill to assemble a car with present torque tools and part placement machines. Most plants now have very modern paint shops and processes.
The fact is you can take any vehicle built on Oshawa and get the same build quality no matter where you build it anymore.
The fact is Oshawa did build good cars but nothing that can not be done by any other modern line.
So get a grip on reality and stop arguing a false point.
The bottom line is GM is not going to return to the days of old and be a slave to the UAW or CAW. They are willing to be fair and it is up to the local unions shops at the plants to determine who gets work and who misses out.
If Oshawa closes it will be due to the CAW choices and demands. There are plenty of people here in the states that learned the hard way just as the CAW will if they keep on this path that will take the work from them given a second chance.
GM is here to make a profit not just pay union benefits. They make a profit everyone wins, The company, Share holders and Union workers getting their bonus.
So keep on spouting what you may but things will go on with or without Oshawa just fine.
Looks like it’s back to the old “race to the bottom” strategy that worked so well in the past.