GM to invest $170M in Oshawa to save 300 jobs

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I guess the complaining by the union and people calling for a boycott of GM products worked to some degree...

https://www.ctvnews.ca/autos/gm-to-...ant-as-part-of-170m-investment-1.4413134

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GM to save 300 jobs at Oshawa, Ont. plant as part of $170M investment
GM makes new investment in Oshawa

Unifor president Jerry Dias and GM Canada president Travis Hester announce measures to invest $170M to transition the Oshawa plant.
Dias, Hester answer questions from the media

Unifor president Jerry Dias and General Motors Canada president Travis Hester answer questions from the media about new $170M investment.

Hundreds of jobs have been saved at an Oshawa, Ont. General Motors plant as the company invests $170 million to transform the facility.

GM Canada and Unifor announced that the current facility, which manufacturers several vehicles, will transition to stamping and sub-assembly. The company says the move is expected to save 300 of the 2,600 jobs that will be affected by the ceasing of vehicle production at the facility by the end of 2019.

"GM plans to be one of Oshawa's leading companies and employers for many decades to come," hailed GM Canada president Travis Hester at a news conference Wednesday.

Unifor national president Jerry Dias said one of the key aspects of the announcement is "the first ever" aftermarket facility for GM.

"After they finish production, for 10 years you have to provide aftermarket parts. So what GM is doing here today is they are making a long-term commitment to Oshawa cause with every vehicle that we start to perform the aftermarket work, it's a 10-year commitment," Dias said.

Aftermarket parts can include everything from doors and roofs, to quarter panelling and trunks.

GM is also planning to transform part of the property at the Oshawa plant into a test track for autonomous vehicles and advanced technology vehicles.

"This agreement maximizes the support for our people and their families, and further secures Oshawa as a key in developing vehicles of the future at our new test track," Hester said in a statement on the company's website.

In November, GM announced it was ceasing production at the Oshawa plant by the end of 2019 - a decision that put thousands of jobs in jeopardy.

Dias said that, while GM's commitment right now is only for 300 jobs, that is likely to expand in the future.

"This announcement, though it might not have a lot of jobs as we sit here today in May, there's going to be a heck of a lot more in December. There will be more next year. There will be more the year after as we continue to Todd Smith, Ontario's Minister of Economic Development, Job Creation and Trade, called the announcement "good news for the City of Oshawa and all of Durham."

"We are glad this historic site will continue to be a hub for vehicle parts manufacturing, technological innovation and regional economic growth," Smith said in a statement.

It's not yet clear when the transformation of the Oshawa plant will begin.
 
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I guess our Provincial Premier, Doug Ford, should resign. He offered no help, saying it was a lost cause and people are going to have get used to job loss. Our premier is supposed to go to bat for us or at least offer hope. Shame on him.
 
Originally Posted by WobblyElvis
I guess our Provincial Premier, Doug Ford, should resign. He offered no help, saying it was a lost cause and people are going to have get used to job loss. Our premier is supposed to go to bat for us or at least offer hope. Shame on him.

Please respect the forum rules and don't make it political. Thanks.
 
Originally Posted by WobblyElvis
I guess our Provincial Premier, Doug Ford, should resign. He offered no help, saying it was a lost cause and people are going to have get used to job loss. Our premier is supposed to go to bat for us or at least offer hope. Shame on him.
100% Doug Ford's fault, it has nothing to do the cost of doing business in Canada v America.
 
"Windmill or no windmill, he said, life would go on as it had always gone on- that is, badly." - Benjamin the Donkey; George Orwell's Animal Farm
 
This is good, but the politicians had nothing to do with GM's decision. The market wants CUV's and SUV's and not cars, so that's what a good business will accept and go forward.
 
Originally Posted by KGMtech
This is good, but the politicians had nothing to do with GM's decision. The market wants CUV's and SUV's and not cars, so that's what a good business will accept and go forward.

^^ This
 
Originally Posted by BigD1
A measly 170 million while they invest billions in China.

We are ~35 million people, it's a big deal to us.
 
Originally Posted by Miller88


Will GM be able to make that much money back from this?

Debatable - insurance companies push for Chinese sheet metal, lights and bumper covers(which aren't terrible compared to Keystone) during repairs under the guise of "keeping premiums low" and I think bdcardinal was saying that collision parts aren't exactly profitable to a dealership parts department.
 
I certainly rather a Canadian built vehicle/parts vs Chinese. But, China is getting better (certain price point) and it's the new reality.
 
Originally Posted by Miller88
566K per saved job.

Will GM be able to make that much money back from this?




GM hasn't worried about the money before this, why would they start now?
 
Originally Posted by WobblyElvis
I guess our Provincial Premier, Doug Ford, should resign. He offered no help, saying it was a lost cause and people are going to have get used to job loss. Our premier is supposed to go to bat for us or at least offer hope. Shame on him.


That plant was a lost cause and still is. GM isn't saving the plant, didn't you read the release? The site is becoming a warehouse for aftermarket parts and they are developing a test location for EV's and automation. The new setup will host around 300 jobs, so we are still losing 2,300. At least the union was able to negotiate SOMETHING, but GM made it clear that the plant wasn't going to be saved, and it still isn't. Advocating that the province toss millions into this black hole is ridiculous, we've done that several times now as the jobs have slowly bled away regardless.
 
Originally Posted by StevieC
Originally Posted by KGMtech
This is good, but the politicians had nothing to do with GM's decision. The market wants CUV's and SUV's and not cars, so that's what a good business will accept and go forward.

^^ This

Even Honda is cutting Accord production recently.
 
Originally Posted by nthach
Originally Posted by Miller88


Will GM be able to make that much money back from this?

Debatable - insurance companies push for Chinese sheet metal, lights and bumper covers(which aren't terrible compared to Keystone) during repairs under the guise of "keeping premiums low" and I think bdcardinal was saying that collision parts aren't exactly profitable to a dealership parts department.



Disgusting...
 
Originally Posted by BigD1
A measly 170 million while they invest billions in China.


When one considers that China is now GM's largest single market, yes, larger than the U.S. for autos, it makes sense. Leave the truck / SUV plants here and move the auto plants to China where the market for them is.
 
Originally Posted by OVERKILL
Originally Posted by WobblyElvis
I guess our Provincial Premier, Doug Ford, should resign. He offered no help, saying it was a lost cause and people are going to have get used to job loss. Our premier is supposed to go to bat for us or at least offer hope. Shame on him.


That plant was a lost cause and still is. GM isn't saving the plant, didn't you read the release? The site is becoming a warehouse for aftermarket parts and they are developing a test location for EV's and automation. The new setup will host around 300 jobs, so we are still losing 2,300. At least the union was able to negotiate SOMETHING, but GM made it clear that the plant wasn't going to be saved, and it still isn't. Advocating that the province toss millions into this black hole is ridiculous, we've done that several times now as the jobs have slowly bled away regardless.

Totally agree, corporate welfare has to stop and at least 300 folks will get spared "for now".
 
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