General Motors To Shut Down Oshawa, Ontario Plant

[Iron Woode]

https://www.ctvnews.ca/autos/gm-closing-all-operations-in-oshawa-ont-sources-1.4191935

Numerous sources have told CTV Toronto that General Motors is planning to close all operations in Oshawa, Ont., affecting thousands of high-paying jobs.

The announcement is expected to be made on Monday, in the city of about 159,000 people located roughly 60 kilometres east of Toronto.

Sources say the Oshawa closures are part of a global restructuring aimed at moving toward lower-emission vehicles. Plants in the United States are also expected to close, although other GM operations in Ontario appear to be safe.

That is quite the blow to that area. 3000+ people are going to be unemployed.

My old 1968 Buick Skylark coupe was built there. I sold that back in 1991.

 

[trenchfoot]

Obama strikes again.......or was it Hillary's turn to get demonized by Trump? So sorry folks, I've lost track it's been so often.

Without Hillary to distract his base with, they'd finally see the real Trump that's been playing them for fools since he drove his clown car into the ring.

edit - I hope GM can re-purpose their soon to be jobless employees that may otherwise have to hit the unemployment line.

 

[pcgeek11]

What does Trump have to do with plant in Canada?

The indications are that the closure may be part of a global restructuring of the company aimed at moving toward lower-emission vehicles, and that there could be other plant closures around the world, sources said.

 

[K1052]

GM to cut production at several plants, reduce salaried workforce by 15 percent

General Motors plans to dramatically cut production at a number of plants in the U.S. next year and reduce its salaried workforce by 15 percent in a massive restructuring that will cost up to $3.8 billion, the company said Monday.

https://www.cnbc.com/2018/11/26/gm-...point8-billion-charge-in-future-quarters.html

 

[allisolm]

GM to cut production at several plants, reduce salaried workforce by 15 percent
https://www.cnbc.com/2018/11/26/gm-...point8-billion-charge-in-future-quarters.html

"GM plans to halt production at three assembly plants in Canada and in
Ohio and Michigan in the United States"

"The plants – Lordstown Assembly in Ohio, Detroit-Hamtramck Assembly
and Oshawa Assembly – all build slow-selling cars. '

https://www.theguardian.com/busines...force-as-slowing-sales-and-steel-tariffs-bite

CNN is reporting 2 propulsion plants in Maryland and Michigan are also being shutdown.

 

[Commodus]

Yeah, can we change the headline? It's not just the Canadian plant, unfortunately, it's some American plants as well.

And needless to say, this fits into the narrative of Trump lying about creating jobs. It's not that he did much to hurt GM directly so much as that he made his empty claims without understanding where businesses were going.

 

[Exterous]

Some of the other sedan related manufacturing is going from 2 shifts down to one. Apparently the demand for sedans is quite low these days so they are scaling back like Ford. I guess everyone has to have an SUV, minivan or truck. And it's only going to get worse with falling gas prices and rising interest rates

 

[K1052]

And needless to say, this fits into the narrative of Trump lying about creating jobs. It's not that he did much to hurt GM directly so much as that he made his empty claims without understanding where businesses were going.

Lordstown specifically since Trump was in the area last year and (of course) promised everyone all the factories would be open/opening and hiring tons of people.

 

[Commodus]

Lordstown specifically since Trump was in the area last year and (of course) promised everyone all the factories would be open/opening and hiring tons of people.

I hope everyone from the area who saw that remembers today when they vote in 2020.

 

[Puffnstuff]

That list has grown to 5 plants.

https://www.cnn.com/2018/11/26/business/gm-oshawa-plant/index.html

 

[K1052]

I hope everyone from the area who saw that remembers today when they vote in 2020.

At a rally near the plant in the summer, Trump talked about passing by big factories whose jobs “have left Ohio,” then told people not to sell their homes because the jobs are “coming back. They're all coming back.

https://www.latimes.com/business/la-fi-hy-general-motors-restructuring-20181126-story.html

 

[Homerboy]

Some of the other sedan related manufacturing is going from 2 shifts down to one. Apparently the demand for sedans is quite low these days so they are scaling back like Ford. I guess everyone has to have an SUV, minivan or truck. And it's only going to get worse with falling gas prices and rising interest rates

Can't wait for the new Hummer!

 

[K1052]

Can't wait for the new Hummer!

 

[Iron Woode]

Yeah, can we change the headline? It's not just the Canadian plant, unfortunately, it's some American plants as well.

The headline is what the article is about: A Canadian GM plant closing.

Feel free to start your own thread about US plants closing.

 

[Fanatical Meat]

The President is going to tweet some really mean things about this.

Then suggest we should offer incentives for
AvtoVAZ to open a production line.

 

[Indus]

Thanks Trump!!!!! MAGA Motherfuckers!!!!!

 

[s0me0nesmind1]

I was going to make a thread on this - but since the topic is already here I wanted to ask a question for everyone:

Are unions one of the causes that drive the factories out (high wages / benefits that are above the skills/labor needed) - or are they part of what has kept them here to the present point?

 

[Zorba]

What does Trump have to do with plant in Canada?

The indications are that the closure may be part of a global restructuring of the company aimed at moving toward lower-emission vehicles, and that there could be other plant closures around the world, sources said.

GM did say that the tariffs cost them $1B so far.

I doubt that by itself doomed these plants though.

 

[Commodus]

I was going to make a thread on this - but since the topic is already here I wanted to ask a question for everyone:

Are unions one of the causes that drive the factories out (high wages / benefits that are above the skills/labor needed) - or are they part of what has kept them here to the present point?

If it were down to labor costs, they'd be talking about moving the manufacturing to Mexico or outside North America. This is about cutting models that weren't selling well and didn't fit into GM's long-term plans.

I'd say the unions were more responsible for keeping the jobs there and making the plants viable for long-term careers... well, until now. I don't think unions guaranteed jobs so much as preventing them from decaying into Amazon warehouse-like jobs with minimal pay and excessive hours.

 

[s0me0nesmind1]

If it were down to labor costs, they'd be talking about moving the manufacturing to Mexico or outside North America. This is about cutting models that weren't selling well and didn't fit into GM's long-term plans.

Agreed - But I'm speaking more in generalities of automotive manufacturing moving outside the US over the last 20 years or so (not just this instance).

I'd say the unions were more responsible for keeping the jobs there and making the plants viable for long-term careers... well, until now. I don't think unions guaranteed jobs so much as preventing them from decaying into Amazon warehouse-like jobs with minimal pay and excessive hours.

How so? Can we come to an agreement that unions overall....

1. Drive up the cost of labor - Demanding high wages, union fees, etc..
2. Are an overall nuisance to the employer - Going on strike, negotiating, etc..
3. Other indirect costs - e.g. safety regulations, red tape, useless positions.

Doesn't added costs just incentivize and push employers to make cost saving moves sooner?

 

[Dulanic]

GM did say that the tariffs cost them $1B so far.

I doubt that by itself doomed these plants though.

Agreed, it mostly had to do with a purchasing shift in vehicle type. However to say a $1B loss due to his tariffs had no impact is laughable, though I'm not saying you personally said that.

 

[IronWing]

Unions built the middle class and the destruction of unions is leading to the destruction of the middle class. Yes, unions cost employers as they shift the fruits of productivity from the stockholders to the workers who actually create value.

 

[Commodus]

How so? Can we come to an agreement that unions overall....

1. Drive up the cost of labor - Demanding high wages, union fees, etc..
2. Are an overall nuisance to the employer - Going on strike, negotiating, etc..
3. Other indirect costs - e.g. safety regulations, red tape, useless positions.

Doesn't added costs just incentivize and push employers to make cost saving moves sooner?

Not necessarily. This is predicated on the assumption that the costs are so much higher that they materially impact a company's ability to turn a profit. The problem is that you rarely see any quantifiable "these are our labor costs" numbers, and I suspect that's in part because the numbers wouldn't be flattering to the companies.

I also think your characterization is decidedly anti-union rather than neutral. There are times when unions go overboard, but those "nuisances" are what keep things from devolving. We have evidence from companies like Amazon and Uber of what happens when a company succeeds in being anti-union: you get miserable pay, dangerous working conditions and employees with no real clout. We need something in between where unions must be allowed, but also can't abuse their power.

 

[zinfamous]

It's MAGA, bro; not MCGA.

 

[zinfamous]

What does Trump have to do with plant in Canada?

The indications are that the closure may be part of a global restructuring of the company aimed at moving toward lower-emission vehicles, and that there could be other plant closures around the world, sources said.

Well, Trump promised that he would create big, beautiful jobs and bring back manufacturing. He would threaten companies that don't acquiesce to his demands.

But quite the opposite has happened since he became president and he has yet to actively do anything about it, as he promised.

Do you think maybe he was lying?