GM puts the brakes on Camaro production at Oshawa plant
Tags: Autos, Unifor (formerly CAW - Canadian Auto Workers), General Motors (GM), Jeff Lagerquist, U.S. Auto Industry
General Motors of Canada Ltd. is putting the brakes on production of the Chevrolet Camaro at its Oshawa Ont. assembly plant as of Nov. 20, according to an according to an announcement Thursday. Approximately 1,000 positions - over a quarter of the Oshawa plant’s hourly workforce - will be eliminated throughout 2015 as parent company General Motors Co. (GM.N -1.27%) shifts Camaro production to its Grand River plant in Michigan.
GM plans to invest $5.4 billion into U.S. factories over the next three years.
GM Canada says it's working with Unifor, the union representing GM's assembly line workers, to offer retirement incentives to eligible staff. The Oshawa assembly plant currently employs approximately 3,600 workers, 2,100 of which are eligible for retirement incentives.
The move eliminates one shift on the plant’s “Flex Line” that also produces the Chevrolet Impala, Buick Regal, and Cadillac XTS. The Oshawa plant also assembles the Chevrolet Equinox and Chevrolet Impala Limited on its “Consolidated Line.”
Moving the Camaro to Michigan will cost GM about $200-million, which will most likely be felt in second quarter of 2015.
Filling the void left by the Camaro will have to wait until the company’s next labour contract with Unifor according to GM. That contract will be negotiated next year.
“GM Canada continues to examine a range of longer-term opportunities and competitiveness enhancements for [the] Oshawa Assembly working with Unifor, government, supplier and community partners to ensure our operations are as innovative and efficient and competitive as they can be,” said GM Canada in a statement to the media.
In addition to the Oshawa manufacturing operation, GM Canada owns the CAMI assembly plant in Ingersoll, Ont., which recently received an $800-million investment commitment from the company.
“I’m disappointed in the decision that GM made, obviously because there’s a 1,000 families tonight who are going to be worried. I understand some of these are going to be retirements and they will be voluntary, so that’s on the brighter side. GM is investing in Canada in the larger sense and it’s good to see investments in R&D, but overwhelmingly, I’m disappointed and I feel families are feeling it today,” said Transport Minister Lisa Raitt.
Finance Minister Joe Oliver downplayed the notion that the loss of the Camaro is connected to Ottawa’s sale of its remaining nearly 73.4 million shares in General Motors for about $3.26 billion ahead of the latest federal budget. He's denying the stock position was ever intended as a bargaining chip for labour issues.
“Every single government that owned shares sold them. We happen to sell them later at a higher price. We did save 50,000 jobs when we invested in the company and we always said this would be a temporary investment and it isn’t appropriate for the government of Canada to own private sector companies over the long term. And we wanted to reduce exposure of taxpayers,” said Oliver.
GM plans to invest $5.4 billion into U.S. factories over the next three years.
GM Canada says it's working with Unifor, the union representing GM's assembly line workers, to offer retirement incentives to eligible staff. The Oshawa assembly plant currently employs approximately 3,600 workers, 2,100 of which are eligible for retirement incentives.
The move eliminates one shift on the plant’s “Flex Line” that also produces the Chevrolet Impala, Buick Regal, and Cadillac XTS. The Oshawa plant also assembles the Chevrolet Equinox and Chevrolet Impala Limited on its “Consolidated Line.”
Moving the Camaro to Michigan will cost GM about $200-million, which will most likely be felt in second quarter of 2015.
Filling the void left by the Camaro will have to wait until the company’s next labour contract with Unifor according to GM. That contract will be negotiated next year.
“GM Canada continues to examine a range of longer-term opportunities and competitiveness enhancements for [the] Oshawa Assembly working with Unifor, government, supplier and community partners to ensure our operations are as innovative and efficient and competitive as they can be,” said GM Canada in a statement to the media.
In addition to the Oshawa manufacturing operation, GM Canada owns the CAMI assembly plant in Ingersoll, Ont., which recently received an $800-million investment commitment from the company.
“I’m disappointed in the decision that GM made, obviously because there’s a 1,000 families tonight who are going to be worried. I understand some of these are going to be retirements and they will be voluntary, so that’s on the brighter side. GM is investing in Canada in the larger sense and it’s good to see investments in R&D, but overwhelmingly, I’m disappointed and I feel families are feeling it today,” said Transport Minister Lisa Raitt.
Finance Minister Joe Oliver downplayed the notion that the loss of the Camaro is connected to Ottawa’s sale of its remaining nearly 73.4 million shares in General Motors for about $3.26 billion ahead of the latest federal budget. He's denying the stock position was ever intended as a bargaining chip for labour issues.
“Every single government that owned shares sold them. We happen to sell them later at a higher price. We did save 50,000 jobs when we invested in the company and we always said this would be a temporary investment and it isn’t appropriate for the government of Canada to own private sector companies over the long term. And we wanted to reduce exposure of taxpayers,” said Oliver.
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