GM shifts some auto production to US from Canada

OSHAWA, Ontario — General Motors is moving production of the next version of its Camaro sports car from its Canadian operation in Oshawa, Ontario, to a plant in Michigan.

GM Canada said a statement Wednesday that “lower capital investment and improved production efficiencies were key factors” in the move.

The Canadian Auto Workers’ most recent contract with GM, which was ratified in September, guaranteed production of the Camaro in Oshawa only until the end of the current generation.

The Canadian Auto Workers union, which represents workers at the plant, said the decision will cut production in Oshawa by as much as one third starting in late 2015 or early 2016, and called on the company to replace the production to protect the jobs at the plant. The union estimated at least 1,000 direct jobs and 9,000 indirect jobs will be lost.

CAW President Ken Lewenza said he felt shocked and betrayed by the move. Some feared recent labor agreements the CAW reached with the North American autoworkers would lead to an exodus of jobs to the U.S. because labor rates are higher in Canada.

“General Motors has once again shown a complete and utter disregard for its workers and also Canadians in general, whose tax dollars kept the company out of bankruptcy,” Lewenza said.

GM said the Camaro is the only rear-wheel drive vehicle assembled at Oshawa. Production of the new Camaro will be consolidated with the production of Cadillac CTS and ATS, also rear-wheel drive vehicles, in Michigan in a bid to improve efficiency.

A consolidated line in Oshawa will continue to produce the current generation Chevrolet Impala and Equinox until June 2014.

GM said it will continue to meet production targets agreed to with the federal Canadian government and provincial Ontario government in 2009.

Ottawa and Ontario contributed $13.7 billion to help bail out GM and Chrysler more than three years ago and combined own about 9 percent of GM’s common shares.

More in Herald Business Journal

Disney buying large part of 21st Century Fox in $52.4B deal

Before the buyout, 21st Century Fox will spin off the Fox network, stations and cable channels.

For modern women, 98-year-old rejection letters still sting

In a stark new video, female Boeing engineers break the silence about past inopportunity.

FCC votes to repeal its net neutrality rules

83 percent of Americans — including 3 out of 4 Republicans — opposed the plan.

Commentary: GM, Boeing fight a war of words over Mars

Boeing is strongly signaling how crucial deep-space exploration is to its future.

Angel of the Winds pays $3.4M for Everett arena naming rights

The casino replaces Xfinity as the lead sponsor for the publicly owned downtown Everett events center.

Delta orders 100 Airbus A321neo jets valued at $12.7 billion

Boeing had hoped to land the deal, offering comparable 737s.

Tulalips break ground on new Quil Ceda Creek Casino Hotel

A 150-room hotel was added to what is now a $140 million complex expected to open in spring 2019.

What can be learned from the optimism of Churchill, Elon Musk

A new movie, “The Dark Years,” depicts Winston Churchill during the perilous… Continue reading

Providence Hospital in Everett at sunset Monday night. Officials Providence St. Joseph Health Ascension Health reportedly are discussing a merger that would create a chain of hospitals, including Providence Regional Medical Center Everett, plus clinics and medical care centers in 26 states spanning both coasts. (Kevin Clark / The Daily Herald)
Merger would make Providence part of health care behemoth

Providence St. Joseph Health and Ascension Health are said to be talking. Swedish would also be affected.

Most Read