GM Still Doesn't Know What to Build in Canada

Robert Farago
by Robert Farago
gm still doesn t know what to build in canada

It's entirely possible, likely even, that GM doesn't want to reveal any decisions about their Canadian production facilities until they beat the Canadian Auto Workers with the same stick that convinced the United Auto Workers to surrender wages, job security, health care provisions, etc. But it's also true that GM has been vacillating back and forth on whether or not to build Canadian rear or front wheel-drive passenger cars for the American market for well over a year. Aside from the… wait for it…. here it comes… ready…. not yet… Camaro, there are no firm product plans for our neighbors to the north. For an answer to this dilemma, the Globe and Mail turned to GM CEO Rick Wagoner, who said union schunion [paraphrasing]. "The issue we're looking at in the U.S. is just with the CAFE [Corporate Average Fuel Requirements] – how big those segments are going to be. It really is the $64,000 question." That figure might be a little low. According to the Globe, "Sources said the original plan called for GM to manufacture as many as 500,000 rear-wheel-drive vehicles including the Camaro once the plant was running at full tilt by 2010." The limbo dance continues.

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  • Jazbo123 Jazbo123 on Jan 16, 2008

    At this point it is still considerably cheaper to build in Canada due to no health care costs - and I believe, lower corprate taxes. The Corp tax is the USA is the second highest in the world. And we wonder why other countries look attractive to our industries? So keep that in mind as you reflexively empty your bladders on the US auto industry

  • Mikey Mikey on Jan 16, 2008

    Last week I had some time on my hands.Most of my work involves the truck plant,and it was down. [something about sales or field stock whatever} So I put on hard a hat and my safety vest,and went for a walk.Gee I hope the boss doesn't read TTAC. What I saw was plant #1 is no longer there.Believe me this place was masive,its been gutted right down to the skelton. Now plant#2 is still running 3 shifts Impalas and Buicks and maintaining it reputation as one of the top quality plants[all brands]in North America. I watched a white Impala LT roll off the line. I've been a car nut my whole life and I know a nice car when I see one.The Impala is a very nice car. Back to plant #1 I bet theres a thousand contruction guys working to put it back together for the yeah!the Camaro 3 shifts of workers 5 days a week. Even plant rats like myself know that GM ain't parting with this sort of dough for a Camaro. We shall see.

  • Akitadog Akitadog on Jan 16, 2008

    Thanks for the insider info Mikey. My guess is that plant #1 may just end up being the plant for all things Zeta. Camaro/G8/Impala? The Camaro alone can't possibly sustain a plant by itself. I think that with the increasingly shrinking dollar, GM may very well shift all US-sold Zetas to NA. They may be counting on the dollar's drop to build here and save the money on shipping from Oz. One more thing. Cylinder deactivation on ALL LSx engines in all applications, GM engineer guys! That one's too easy to do, so do it already.

  • Captain Tungsten Captain Tungsten on Jan 16, 2008

    Wouldn't it be a kick if they started exporting all Zeta's from Canada, and only sourced Aussy ones domestically? Falling dollar makes that a possibility.