GM To Shutter Ontario Car Plant To Focus On Hybrids/EVs

GM To Shutter Ontario Car Plant To Focus On Hybrids/EVs

GM To Shutter Ontario Car Plant To Focus On Hybrids/EVs

We are also asking the federal government to work with their USA counterparts to remove all tariffs so that impacted auto parts suppliers can remain competitive after the Oshawa Assembly Plant closes its doors. It also plans to cut production at two plants in the USA that make transmissions.

GM is shedding cars largely because it doesn't make money on them, Citi analyst Itay Michaeli wrote in a note to investors.

It said earlier this month that it plans to move workers at its Pontiac propulsion facility to its Tech Center in Warren. The first thing I said is, 'What can we do? "Oshawa has been in this situation before with no product on the horizon and we were able to successfully make the case for continued operations".

She said the firm was making the changes "to get in front of it while the company is strong and while the economy is strong". Its shares rallied 7.6 percent to $38.66.

While industry-wide passenger auto sales were down 13.2 percent through the first nine months of the year, pick-up truck and SUV sales rose 8.3 percent.

Could Korean production be under threat?

Ford, who is scheduled to address the issue in a media availability later Monday, expressed his concerns for the well being not only of GM workers, but the thousands employed in the broader supply change and also in local businesses that depend on these customers.

Unifor national president Jerry Dias said in April that the Oshawa complex was headed for closure in June of this year.

The plants now build cars that won't be sold in the USA after next year, including the Chevrolet Volt, Buick LaCrosse, Cadillac CT6, Chevrolet Cruz compact, and Chevrolet Impala.

But moving that vehicle, the Chevrolet Cruze, south of the border brings the risk of provoking a backlash from President Donald Trump.

GM said its Oshawa Assembly plant in Oshawa, Ontario, its Detroit-Hamtramck Assembly plant in MI, and its Lordstown Assembly plant in Warren, Ohio, would be "unallocated" by the end of 2019 as it reorganized its manufacturing capacity to focus on electric and self-driving cars and in anticipation of a downturn in the auto market.

GM's (GM) new motto is "Zero Crashes, Zero Emissions, Zero Congestion", signaling a shift to self-driving, electric vehicles.

According to Dias, the contract negotiatied between Unifor and the company in 2016 spelled out that GM would not close any of its manufacturing plants in Canada during the contract period, which runs until September 2020. "That's a real mismatch in a market where 40 per cent of the vehicles sold are crossover utilities".

"Extremely concerned about reports regarding potential closure of GM Canada Oshawa operations", Durham MP Erin O'Toole tweeted Sunday night.

CBS News reports that the layoffs make up about 15 percent of GM's workforce.

Liberal Leader John Fraser asked where Ford has been, how many meetings he has held with GM since becoming premier. The proposal boosts regional content of tariff-free automobiles to 75 per cent and requires 40 per cent of a vehicle be made by workers earning US$16 an hour, shifts that favour Canadian and USA plants over those in Mexico and overseas. Also affected are transmission factories in Warren, Mich., as well as Baltimore.

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