VIDEO: GM to close Oshawa plant, four U.S. plants in massive reorganization push

Company to focus on electric and autonomous vehicle programs

Workers from Oshawa’s General Motors car assembly leave the plant, Monday Nov 26 , 2018. (THE CANADIAN PRESS/Eduardo Lima)

Workers from Oshawa’s General Motors car assembly leave the plant, Monday Nov 26 , 2018. (THE CANADIAN PRESS/Eduardo Lima)

General Motors will close its production plant in Oshawa, Ont., along with four facilities in the U.S. as part of a global reorganization that will see the company focus on electric and autonomous vehicle programs.

The auto manufacturer announced the closures as part of a sweeping strategy to transform its product line and manufacturing process to meet changing demand in the transportation industry, a plan that it said will save the company US$6 billion by the year 2020.

“This industry is changing very rapidly, when you look at all of the transformative technologies, be it propulsion, autonomous driving… These are things we’re doing to strengthen the core business,” GM chief executive and chairwoman Mary Barra told reporters Monday. “We think it’s appropriate to do it at a time, and get in front of it, while the company is strong and while the economy is strong.”

GM also said it will reduce salaried and salaried contract staff by 15 per cent, which includes 25 per cent fewer executives. The US$6 billion in savings includes cost reductions of US$4.5 billion and lower capital expenditure annually of almost US$1.5 billion.

GM’s shares in New York jumped as high as 7.8 per cent to US$38.75. The automaker’s shares were trading at US$37.95 by the early afternoon, their highest level since July.

Unifor Local 222 shop chairman Greg Moffat said Monday the plant is not closing “without the fight of our lives.”

READ MORE: Uber suspends self-driving car tests after death

The Oshawa Assembly Plant employs 2,522 workers with Unifor Local 222, according to GM’s website. Production began on Nov. 7, 1953, and in the 1980s the plant employed roughly 23,000 people.

GM is also closing the Detroit-Hamtramck Assembly plant in Detroit and the Lordstown Assembly in Warren, Ohio in 2019. GM propulsion plants in White Marsh, Md., and Warren, Mich., are also due to close as well.

The automaker did not say the plants would close, but used the term “unallocated,” which means no future products would be allocated to these facilities next year.

The closures come as North American automakers feel pressure from U.S. tariffs on imported steel and aluminum. Last month, GM rival Ford Motor. Co. reported a US$991 million profit during its third quarter, but said tariffs cost the company about US$1 billion. Of that amount, US$600 million was due largely to U.S. tariffs on imported steel and US$200 million from retaliatory tariffs imposed by China on American vehicles, Ford said.

The restructuring announcement also comes after Canada and the U.S. reached the United States-Mexico-Canada Agreement to replace the North American Free Trade Agreement, after months of strained negotiations.

Under the new trade deal, 40 per cent of the content of automobiles must be produced by workers earning at least US$16 per hour to qualify for duty-free movement across the continent. The agreement also stipulates that 75 per cent of the automobile’s contents must be made in North America in order to be tariff-free.

Meanwhile, GM’s Barra said Monday the company will be investing in autonomous and electric vehicle technology.

The Canadian Press

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A partial image from the painting Kanaka Creek by Eric Hotz, which in the exhibit at the Pitt Meadows Art Gallery.
A Study of Nature exhibition opens at Pitt Meadows Art Gallery

Eric Hotz paintings feature familiar scenes from across the Lower Mainland

Shannon Belsito took this photo on Thursday morning, indicating the true arrival of spring. “Feeling the inspiring beauty and freshness of spring with these gorgeous magnolia blossoms near Kanaka Creek that just popped after the rain.” (Special to The News)
SHARE: Spring has arrived in all its splendor

Send us your photo showing how you view Maple Ridge or Pitt Meadows, and it could be featured soon.

A small memorial to Rich Goulet was started at Pitt Meadows Secondary after his recent death. (Neil Corbett/The News)
LETTER: Rename Pitt Meadows school gym in coach’s honour

Rich Goulet was considered one of the provinces best basketball coaches and died recently

Doug Nolin, a Maple Ridge senior, snapped this picture of his pet pigeons taking flight down by the old Albion ferry dock. “What a beautiful land we live in,” he said. (Special to The News)
SHARE: Chirp, chirp: Ridge senior captures pigeons taking flight

Send us your photo showing how you view Maple Ridge or Pitt Meadows, and it could be featured soon.

Pamela Franklin captured this picture of a raccoon in Maple Ridge, “chilling” in her backyard, on her storage bin. (Special to The News)
SHARE: Lounging in the spring sun

Send us your photo showing how you view Maple Ridge or Pitt Meadows, and it could be featured soon.

People take part in an anti-curfew protest in Montreal on Sunday April 11, 2021. Hundreds of people gathered in Old Montreal tonight in defiance of a new 8 p.m. curfew. THE CANADIAN PRESS/Giuseppe Valiante
VIDEO: Hundreds defy Montreal’s 8 p.m. curfew in violent, destructive protest

Quebec reported 1,535 new COVID-19 cases on Sunday, as well as five additional deaths linked to the virus

A volunteer disinfects a historical Mohabat Khan mosque ahead of the upcoming Muslim fasting month of Ramadan, in Peshawar, Pakistan, Friday, April 9, 2021. (AP Photo/Muhammad Sajjad)
For Canadian Muslims, second pandemic Ramadan is a time of hope and sadness

Many members of the association are trying to find ways ‘to help people stay connected to one another’

South Surrey farmland, March 2020. The province’s crackdown on secondary residences sparked protests that have the NDP government engaged in a lengthy rewrite of its legislation. (Tracy Holmes/Peace Arch News)
B.C. NDP now wants to keep even ‘non-farmers’ on the land

‘Grandfathering’ of second residences extended again

Photos of Vancouver Canucks players are pictured outside the closed box office of Rogers Arena in downtown Vancouver Thursday, April 8, 2021. The Vancouver Canucks say 25 players and coaches have tested positive during a COVID-19 outbreak that involves a variant of the virus. It is now the biggest reported outbreak in the NHL this season. THE CANADIAN PRESS/Jonathan Hayward
Canucks’ return to practice pushed back as player added to COVID protocol list

COVID outbreak has led to eight games being cancelled

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

People walk past the Olympic rings in Whistler, B.C., Friday, May 15, 2020. Whistler which is a travel destination for tourists around the world is seeing the effects of travel bans due to COVID-19. THE CANADIAN PRESS/Jonathan Hayward
Adults living, working in Whistler, B.C., eligible for COVID-19 vaccine on Monday

The move comes as the province deals with a rush of COVID-19 and variant cases in the community

RCMP crest. (Black Press Media files)
UPDATE: RCMP investigating after child, 6, dies at motel in Duncan, B.C.

The BC Coroners Service is conducting its own investigation into the circumstances around the child’s death

Most Read