GM Oshawa operations - Concerns

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OVERKILL

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OSHAWA - Ontario is at risk of losing up to 33,000 jobs within two years of any shutdown of the GM complex in Oshawa, says a study released by the union that represents autoworkers.

Unifor national president Jerry Dias said governments must directly invest in the auto sector to keep the industry alive in Canada.

"Oshawa won't survive unless both the federal and provincial governments are prepared to play," Dias said Monday. "There is no successful auto industry anywhere in the world that is successful in isolation of government. Governments need to play a leadership role."

The study, Economic Impact of GM Operations in Oshawa, estimates that Ontario would lose 22,000 to 24,000 jobs immediately and up to 33,000 jobs over two years if GM shutters its operations.

Dias said anyone who dismisses investment in the auto industry as corporate welfare doesn't understand the economic benefits.

Oshawa GM boosts the country's GDP by $5 billion a year, directly and through spin-off economic activity, and a $1-billion investment by governments would likely keep it open for at least a couple more decades, he said.

"It's called economic suicide not to participate, and that's what the study shows," Dias said.

The future of GM in Oshawa is believed to be in doubt beyond 2016 unless the company commits to the production of a new product.

Ontario Economic Development Minister Brad Duguid said his government is interested in partnering with the federal government to keep GM in Oshawa.

"I'm very hopeful," Duguid said. "I can tell you right now getting that future mandate for GM Oshawa is our number one priority. "

It's too soon to discuss how much the Ontario government would be prepared to put into GM, he said.

Dias said both the provincial and federal governments have been willing to talk investment with GM.


http://www.thepeterboroughexaminer.com/2015/03/30/33000-jobs-at-risk-if-gm-oshawa-closes-study

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Everybody wants something. Its especially bad when sports teams threaten to leave without stadiums and municipal debt being let for a handful of minimum wage jobs selling beer and peanuts. Often the stadiums get torn down or the teams move before the debt is even paid off!

At least with jobs like these, they are real wage paying jobs that bring real income to the people in the community. Im not saying its right, look at how badly the taxpayer took it on the chin in GA to get MB and Kia there... But notionally the wages and income taxes and cycle upon cycle of money changing will pay itself back many-fold.

Its a sign that there is too much of a tax burden on corporations, I guess. The thing is, in the USA at least, were already bankrupt, so taxing less will not necessarily yield any benefit. Canada may be a bit more fiscally responsible, but the indicators seem to point the same way.

But its also true that as long as other nations are subsidizing their auto industry, how is it a fair playing field?
 
I'm a little fuzzy on the details here. I know that GM builds the late model Impala (GMX211, for fleet and police use only, in Oshawa 2. And I believe it is due reach EOP (end of production) in '17? But I can't imagine that GMX211 production could amount to a lot of jobs. It is fairly low volume.

So, what else is built in Oshawa? And when is EOP for these other platforms?

Lastly, has there been no announcement on what GM plans on building in Oshawa after EOP of the current platforms?
 
I THINK, the current F-body is built there. Since it's introduction they have sold 500,000. That is more than the Mustang or Challenger in that time period. They sell a bunch of them. It went on sale in April 2009.
 
Thank the Liberal Provincial gov't for another manufacturing plant to shut down. Let's just spend spend spend.

Absolute disgrace.
 
With the exception of Camaro, Oshawa's flexible arrangement has been primarily hosting lower-volume models:

Cadillac XTS (only N America assembly location)
Buick Regal (only N America assembly location)
Chevrolet Camaro (moved to LGR)
Chevrolet Impala (only 2.4L eAssist; 2.5L and 3.6L are produced at D-Ham)
Chevrolet Equinox (overflow for CAMI, only paint shop and general assembly... production already stopped)
Chevrolet Impala Limited (production ending)
 
Originally Posted By: Bluestream
Maybe they should cut their wage demands instead of asking for Government handouts?


Agreed.......but they will run it into the ground and declare victory. Once the government gives them money two years later they will go on strike for higher wages.

Bottom line: the union model is not competitive.
 
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It's a shame really. I own a 2014 Camaro convertible and it's a well built car. I also owned two Chrysler LHs (300M and Intrepid ES) which were also good cars assembled in Canada. I worked in construction trades my entire career and found a noticeable difference in the Canadian work ethic. In general, they are more craftsmanship oriented while Americans are all about production. In my field, that meant higher quality construction albeit at a price differential. Sounds like a similar deal in the car business. I just hope LGR can build as good a GenSIX Camaro as Oshawa did for Gen5.
 
Originally Posted By: Doog
Originally Posted By: Bluestream
Maybe they should cut their wage demands instead of asking for Government handouts?


Agreed.......but they will run it into the ground and declare victory. Once the government gives them money two years later they will go on strike for higher wages.

Bottom line: the union model is not competitive.



You understand that the union currently makes less than a non-unionized Honda plant, right?
 
Why is the plant no longer economically feasible for GM?

Wages? Cost of power? Regulations? Taxes?
 
I have two GM trucks of the same generation (GMT800 - 1999 to 2006/2007).

One was built at the Oshawa truck plant (now closed), one in Fort Wayne (IN).

If I could have two from the same plant, I'd take two Fort Wayne trucks in a second. I wouldn't have to think about it.
 
Originally Posted By: hattaresguy
Why is the plant no longer economically feasible for GM?

Wages? Cost of power? Regulations? Taxes?

I know that Ontario was generous about tax exemptions for those plants in the past, I don't know how things work now though.

Wages are just a bit higher than to the south, but the cost of living is higher in Canada too, so it's really a wash.
 
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