Overnight, locals reports surfaced that the Oshawa, Ontario, assembly plant in Canada would not have any product allocated after December 2019. The news effectively foreshadows the plant’s closure after years of bitter battles with Unifor, the local union.
However, a new report from Reuters on Monday suggests the cuts won’t stop at Oshawa. A source familiar with GM’s business plans said the automaker will announce a major restructuring effort today. The plan will include cuts to car production at underutilized plants and the end of some model lines, the source added on the condition anonymity
The Canadian union also reiterated that GM has a major announcement coming today after the automaker informed Unifor on Sunday that it will not receive any new product at Oshawa. Where the cuts will occur is unknown, but GM currently operates a handful of plants that build slow-selling passenger cars. Lordstown, Ohio, is a prime candidate for the chopping block. Detroit-Hamtramck also builds a host of sedans, and Fairfax, Kansas, builds the Chevrolet Malibu. However, Cadillac XT4 production could be Fairfax’s saving grace.
Oshawa currently builds the Cadillac XTS—set for expiration soon—and the Chevrolet Impala full-size sedan. Most recently, Oshawa began final assembly of previous-generation Silverado and Sierra pickup trucks as GM ramped up production of the new 2019 Silverado and 2019 Sierra.
It’s unclear if the announcement today will simply involve production layoffs and the discontinuation of certain models, or if GM plans to announce plant closures. No matter the severity of the news, it will come one week after GM closed out applications for salaried employee buyouts. The automaker offered buyout packages to thousands of salaried workers in an effort to trim costs. The automaker reportedly fell short of an internal quota for salaried employees who opted into the buyout, and layoffs are reportedly on the table.