GM closing all operations in Oshawa

The company has been dialing down production at the Lordstown plant since 2017 primarily because of weak demand for the Chevrolet Cruze manufactured there.

"Based on commitments made during 2016 contract negotiations, Unifor does not accept this announcement and is immediately calling on GM to live up to the spirit of that agreement", the union said in a statement on its website. In all, GM plans to cut 10,000 jobs in North America.

US consumers have swiftly shifted away from passenger cars to larger, more comfortable SUVs and pickup trucks, leaving automakers scrambling to readjust.

In a statement, Detroit Mayor Mike Duggan described the news as "troubling" and said that the city's economic development team and the UAW union are "working together to come up with a solution that works for GM and the employees".

The salaried workforce restructuring includes cutting 15 percent, or 8,1000, of its 54,000 salaried employees in North America, including slashing global executives by 25 percent.

And in July, GM executives said pressure from commodity prices and foreign exchange rates had been more significant than expected and the automaker expected a $1-billion additional headwind, with the biggest exposure being steel. The automaker's other Canadian facilities - in St. Catharines, Ont. and Ingersoll, Ont. - are not affected by the announcement.

According to GM, the Oshawa plant employed 2600 hourly employees and 300 on salary.

"Every time we have a problem with a point, I just put up a picture of a Chevrolet Impala", Trump said in off-the-record comments to Bloomberg that were reported by the Toronto Star.

"The closure of this plant will have a ripple effect like we have never seen before". "We're going to get those jobs coming back, and we're going to fill up those factories or rip them down and build brand-new ones".

The closures come as North American automakers feel pressure from US tariffs on imported steel and aluminum.

"We need to make sure that we are well positioned to compete, not just over the next few years, but well beyond", she said.

Jerry Dias, president of Unifor - the union that represents workers at the plant - said the union would fight tooth and nail to bring another product to the plant to preserve jobs.

"They're gone; they're done".

"I can't believe our president would allow this to happen", she said Monday.

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. A condition of that loan was that GM would not reduce its manufacturing operations in Canada for six years.

GM's shares in NY jumped as high as 7.8 per cent to US$38.75.

The full closure of the Oshawa plant will leave 2,500 unionized workers and 300 salaried employees out of work, with indirect effects rippling across the southern Ontario auto industry and beyond.

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.


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