Published: Tue, November 27, 2018
World Media | By Shelia Harmon

GM to close Oshawa plant along with four others in U.S.

GM to close Oshawa plant along with four others in U.S.

"What do we have to do?'" said Ford, referring to a Sunday night call with GM Canada's President Travis Hester.

America's largest vehicle maker said some workers would transfer to SUV and truck factories, which are increasing their output because of growing demand.

A total of 14,700 factory and white-collar workers will be laid off as a result of the closures. The United Auto Workers union, which represents employees at GM's USA factories, said in an emailed statement that it will challenge GM's decision through legal, contractual, and collective bargaining means. Barra is also shifting resources toward building electric cars and, eventually, vehicles that drive themselves. In the 1980s, the plant employed roughly 23,000 people.

At the time of the transfer, Dias said Carlisle's appointment to head Cadillac would raise his profile and influence within GM's headquarters in Detroit, and that "would be a huge benefit for us".

Industry analysts are already plotting out possible targets for GM, including its sprawling Lordstown plant in northeastern Ohio.

"GM workers have been part of the heart and soul of Oshawa for generations - and we'll do everything we can to help the families affected by this news get back on their feet".

Canada and Ontario also backed a 2005 investment by GM to modernize the Oshawa plant's paint shop.

The junior hockey team, where Bobby Orr once played, is called the Oshawa Generals, and they played at the GM arena until it was renamed in 2016. In part thanks to the impact of the Trump administration's steel tariffs, GM has been trying to get thousands of North American workers to accept buyouts.

Trudeau asked the provincial government to use what tools it has to help transition the community, sources said.

Smith also noted Ontario PCs have "taken aim at the federal carbon tax", while outlining what the government has done to create an environment for businesses to stay in the province. Operations at two additional plants outside of North America will be ceased by the end of 2019 as well.

General Motors rallied as much as 8% Monday after announcing plans to stop producing vehicles at three factories in North America and to cut its salaried employees by 15% next year.

"The UAW and our members will confront this decision by GM through every legal, contractual and collective bargaining avenue open to our membership", the union said in a statement. "We think it's appropriate to do it while company is strong and the economy is strong". Two transmission plants - one in White Marsh, Md., and another in Warren, Mich. - are also set to stop production.

"It is disappointing that GM failed to see and build upon this competitive advantage", said Ford in a statement on Monday.

While industry-wide passenger vehicle sales were down 13.2 percent through the first nine months of the year, pick-up truck and SUV sales rose 8.3 percent. "They told me straight up there's nothing we can do", he said.

All these actions are expected to increase GM's annual adjusted automotive free cash flow by $6 billion on a run-rate basis by year-end 2020, according to the company. The Chevy Volt plug-in hybrid will also be dropped along with the Chevy Cruze compact (which is sold as the Holden Astra sedan here and built in Korea), which will be made in Mexico for other markets.

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