General Motors has announced that it will drop one shift from its ‘Flex’ line at the Oshawa Assembly plant in Ontario, Canada this year, thereby reducing the amount of hourly workers by 1,000.
The changes are part of GM’s production adjustments first announced in 2012 that including moving production of the next-generation 2016 Chevrolet Camaro from GM’s Oshawa, Ontario Assembly plant to Lansing, Michigan. The move drops the number of vehicles made at the Oshawa plant from six to five.
To minimize the number of layoffs and employment impacts and to align to market demand, GM will soon begin a voluntary retirement canvass at the plant, which currently employs approximately 3,600 hourly workers. Of these, 2,100 are eligible for retirement incentives. GM doesn’t yet know the number of total retirements and that it will determine the number through the canvass. The automaker does, however, underline that in December 2015, Oshawa Assembly will have 2,600 hourly employees building five vehicles on three shifts.
Furthermore, production of the current fifth-generation Chevy Camaro at Oshawa is set to halt on November 20, 2015, reducing the number of shifts working the Flex line from three to two. For the near future, the Chevrolet Impala, Cadillac XTS and Buick Regal will continue to be manufactured on the Flex line, while the Consolidated line will continue producing the Chevrolet Equinox and fleet-only Impala Limited on one shift. GM notes that the majority of all automotive industry assembly plants in North America currently run on two shifts.
| LINE: | FLEX LINE | CONSOLIDATED LINE |
|---|---|---|
| VEHICLE: | CHEVY CAMARO (DISCONTINUED NOV. 20, 2015 | CHEVY EQUINOX |
| VEHICLE: | CHEVYÂ IMPALA | CHEVY IMPALA LIMITED (FLEET ONLY) |
| VEHICLE: | CADILLAC XTS | |
| VEHICLE: | BUICK REGAL | |
| CURRENT SHIFTS: | 3 | 1 |
| DECEMBER 2015 SHIFTS: | 2 | 1 |
As a result of the restructuring, GM expects to take a $200 million charge in the second quarter of 2015. These charges were included in GM’s guidance of restructuring charges impacting earnings before interest and tax (EBIT) adjusted given in January totaling approximately $700 million for 2015. In addition, these charges were incorporated in the company’s guidance for North America’s full-year EBIT-adjusted and EBIT-adjusted margin to improve on a year-over-year basis, after adjusting 2014 for the impact of recall costs.
Comments
GM’s slow exit from Canada. All there will be is Honda, Toyota, Chrysler & Ford.
Gives opportunity to consider “other than GM”.
Can’t trust those Americans!!!
Nothing is forever… That said, I cannot wait to see the 6th Gen Camaro… 😉
I am sad to read the GM slowdown at Oshawa. My 1995 Buick Regal Limited Sedan was assembled there on October 6, 1994, so it will be 26 years old soon. But it runs like new, and I am extemely satisfied to its quality and durability.