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

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

GM will also close two additional plants outside of North America by next year.

While General Motors has dramatically reduced production and assembly in Canada, it announced a plan in June 2016 to hire about 700 engineers to expand research into self-driving cars and other technology.

GM's latest move includes the possible closure of seven plants worldwide, as the firm shifts its focuses from away from a stagnant sedan/saloon vehicle market. GM also operates manufacturing facilities in St. Catharines, Ont., and Ingersoll, Ont.

"We estimate sedans operate at a significant loss, hence the need for classic restructuring", he wrote.

"I have seen the same reports as many in my riding, which claim GM may be closing their operations in Oshawa, and I find these reports gravely concerning", said French.

General Motors was down 9% this year. But sales are starting to slip in China and North America, two of GM's biggest and most important markets. Fiat Chrysler Automobiles got out of small and midsize cars two years ago, while Ford announced plans to shed all cars but the Mustang sports vehicle in the U.S.in the coming years.

The US's largest carmaker, GM's brands include such well-known names as Chevrolet, Buick and Cadillac.

"Contributing to the cash savings of approximately $6 billion are cost reductions of $4.5 billion and a lower capital expenditure annual run rate of nearly $1.5 billion", GM said in a statement.

GM is also dealing with some higher costs associated with tariffs on imported steel and aluminum, which has raised its commodity costs by about $300 million in the third quarter and could raise costs by $1 billion next year. "We think it's appropriate to do it while company is strong and the economy is strong".

At a news conference in Ottawa, Innovation Minister Navdeep Bains echoed Ford's sentiment, saying the federal government is assessing the next steps to help those affected by what he repeatedly called a "global restructuring".

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Ontario Premier Doug Ford said it was a "difficult day" for the Oshawa plant workers, Ontario auto part suppliers and their families.

"GM owes the community answers on how the rest of the supply chain will be impacted and what consequences its disastrous decision will have on the Mahoning Valley and our state", he said in the press release.

"We are right-sizing capacity for the realities of the marketplace", Chief Executive Mary Barra said, adding that the cuts were prompted by auto industry changes. The company has invested in newer architectures for trucks and SUVs so it can cut capital spending while still raising investment in autonomous and electric vehicles.

GM recently offered buyouts to 18,000 workers.

The Oshawa plant closure in 2019 will throw more than 2,500 people out of work and end a century-long connection between GM and the city east of Toronto.

The cuts go all the way to the top, as GM plans to cut a quarter of its executive team in an effort to streamline operations and maintain profitability.

Trump said at the White House that he wants GM, which announced plans to shut down seven plants, to "get back in there soon".

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. After we are sworn in, Jon Husted and I will be visiting the Detroit Auto Show in January to make our case in-person to GM about the future of the plant.

Those workers were told this morning that production will end on March 1, and there was no mention of another product being made at the plant. GM says the Detroit-Hamtramck Assembly, Lordstown Assembly, Baltimore Operations, and Warren Transmission Operations "will be unallocated in 2019".

GM employs about 2,500 union staff and roughly 300 salaried employees in the Oshawa area.

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