Workers stream out of GM Oshawa plant amid reports of planned closure

Workers stream out of GM Oshawa plant amid reports of planned closure

Workers stream out of GM Oshawa plant amid reports of planned closure

Canadian Prime Minister Justin Trudeau on Monday expressed his "deep disappointment" in General Motors' decision to close its Oshawa plant, a move Canadian officials only learned about on Sunday and which led workers to walk off the job on Monday.

"The sooner they realize that our plant is not closing, the better off they're going to be".

Stojkovic said she blamed both GM and the union, Unifor, for the dearth of information.

The proposal boosts regional content of tariff-free automobiles to 75 per cent and requires 40 per cent of a auto be made by workers earning US$16 an hour, shifts that favour Canadian and USA plants over those in Mexico and overseas.

"This is the part that scares me across the industry, everyone focusing so much on new mobility - it's such a long-term play", said Joe Langley, IHS Markit associate director.

"This industry is changing very rapidly".

GM CEO Mary Barra said the company is no longer focusing on the sedans and trucks manufactured in Oshawa.

GM expects the actions announced Monday to contribute $6 billion in cash savings by 2020 - $4.5 billion in cost reductions and $1.5 billion in lower capital expenditures.

"Today we got our first major preview of how this upheaval will manifest", he added.

The auto manufacturer confirmed the closure on Monday morning, along with that the closure of the Detroit-Hamtramck Assembly plant in Detroit and the Lordstown Assembly in Warren, Ohio.

The impending shutdown is "scary", said Matt Smith, who has worked at the Oshawa plant for 12 years.

Globally, GM is also reducing the size of its total workforce, including white-collar staff. But I think what is really positive is that the workers are back at the plant today and they are doing what Canadians do. "It's a kick in the nuts".

GM did not announce the closure of the plants - Oshawa Assembly in Canada, Lordstown Assembly in OH and Detroit-Hamtramck Assembly in MI - but said it would not allocate any products.

Production reached its peak in the 1980s after a almost $8-billion investment GM's Canadian manufacturing facilities, making Oshawa "Autoplex" one of the biggest assembly plants in the world, boasting a workforce of over 40,000.

In addition to the previously announced closure of the assembly plant in Gunsan, Korea, GM will cease the operations of two additional plants outside North America by the end of 2019. The automaker intends to close the plant in December 2019.

Dr. Colin Carrie, Member of Parliament for Oshawa, said in a statement on Sunday that he was gravely concerned for the potential effect of the closure on Oshawa and on Ontario. "We're all in limbo right now", Stojkovic told The Canadian Press. Last month, GM rival Ford Motor.

The Oshawa operation became a talking point for U.S. President Donald Trump during Canada-U.S. trade negotiations, according to a Toronto Star report about an off-the-record aside during an interview with Bloomberg News over the summer. Earlier in November, the company offered buyouts to 50,000 of its full-time workers to cut costs. A condition of the loan was that GM would not reduce its manufacturing operations in Canada for six years.

The announcement blindsided employees at GM's Oshawa plant in Canada.

"Oshawa is building the previous generation trucks that are very helpful in the crossover period".

The timing of the decision was surprising, but not the decision itself, said Dennis DesRosiers, president of DesRosiers Automotive Consultants.

"The writing has been on the wall for quite some time so it was a matter of when not whether they would make this move", he said in an email.

General Motors is planning to announce the closure of its Oshawa, Ontario, plant Monday, which will eventually result in the loss of about 2,500 jobs.

One man said the union had told workers at the plant to go home and would be speaking with employees at an afternoon meeting.

He said the government will stand with the people of Durham Region and is exploring measures to help the 2,500 impacted workers, along with businesses and communities, cope with the aftermath of this decision.

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