GM plans major announcement on global operations Monday: Canada union

MONTREAL/WASHINGTON (Reuters) – General Motors Co (GM.N) is ready to make a major announcement on Monday that can have an effect on its global operations and threatens to shutdown an enormous car meeting plant within the province of Ontario, a Canadian union mentioned on Sunday.

FILE PHOTO: A line up of vehicles is seen on a street after a shift change on the General Motors Car meeting plant in Oshawa, June 1, 2012. REUTERS/Mark Blinch

Unifor, which represents most unionized autoworkers in Canada, mentioned it had been knowledgeable by GM that there could be no product allotted to the plant in Oshawa after December 2019, a improvement that may have an effect on manufacturing on the plant.

The union assertion got here after a Canadian TV information channel mentioned GM was planning to shut all operations on the plant in Oshawa, close to Toronto.

A GM spokesman declined to remark on Sunday night.

GM has been chopping jobs to take care of plunging automobile gross sales in North America. The firm has internally debated for months learn how to deal with shrinking automobile demand, an individual briefed on the matter mentioned, and the problem is for certain to re-emerge when GM holds contract talks subsequent 12 months with the United Auto Workers union.

GM is anticipated to announce as quickly as this week some involuntary salaried layoffs after it didn’t get as many volunteers to just accept buyouts as hoped, the particular person mentioned.

GM mentioned on Oct. 31 that about 18,000 of its 50,000 salaried workers in North America are eligible for the buyouts.

The stepped up cost-cutting and restructuring at GM comes as many business executives and analysts predict that general car gross sales within the United States will decline additional in 2019 and 2020.

At the identical time, China, the world’s largest auto market and GM’s greatest market by car gross sales, has decelerated sharply previously few months.

Analysts have mentioned GM has too many North American vegetation constructing slow-selling sedans.

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GM shares are down 12 p.c for the 12 months, and GM Chief Executive Mary Barra, in a message to workers final month, cited the stagnant share value as a cause for more durable restructuring measures.

She mentioned the automaker had adverse money movement for the primary 9 months of the 12 months and it wanted to chop prices.


GM has been providing buyouts to North American salaried staff and has mentioned it might lay off white-collar workers if it doesn’t hit a cost-cutting goal.

The particular person briefed on the matter confirmed that GM deliberate a major announcement on the way forward for the Oshawa plant, however mentioned the automaker needed to inform workers of its plans earlier than making any bulletins concerning the plant.

Total car manufacturing on the Oshawa complicated fell 60 p.c by way of the primary ten months of 2018 from the identical interval a 12 months in the past, in keeping with Automotive News manufacturing knowledge.

GM employs about 2,500 union workers in Oshawa which produces each the Chevrolet Impala and Cadillac XTS sedans. It additionally completes last meeting of the stronger-selling Silverado and Sierra pickup vehicles that are shipped from Indiana.

Political stress in Canada is already mounting on GM, which had accepted billions of in help from the U.S., Canadian and Ontario governments after submitting for chapter safety throughout the 2009 global financial downturn.

“We are aware of the reports and we will be working in the coming days to determine how we can continue supporting our auto sector and workers,” a Canadian authorities official mentioned.

“The jobs of many families are on the line,” mentioned Colin Carrie, a Member of Parliament for Oshawa. “Communities throughout Ontario could be devastated if this plant had been to shut.

The U.S.-based automaker has different operations in Canada, together with a plant in Ingersoll, Ontario, the place it assembles the Chevrolet Equinox.

The reported plant closure is an additional blow to the Canadian auto business, which has misplaced jobs to the United States, the place governments provide producers wealthy incentives, and Mexico, the place labor prices are decrease.

However, a brand new commerce deal that the United States, Mexico and Canada struck in September leaves important room for Canadian vegetation to develop exports duty-free.

Reporting by Allison Lampert in Montreal and; David Shepherdson in Washington DC. Additional reporting by David Ljunggren in Ottawa and Joseph White in Detroit; Writing by Denny Thomas; Editing by Peter Cooney

Our Standards:The Thomson Reuters Trust Principles.

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