GM Closes Windsor Tranny Plant

by Samir Syed

May 13th, 2008 4:42 AM

CTV reports that General Motors is closing its transmission plant in Windsor, Ontario by 2010. The plant currently employs 1400 workers producing ye olde four-speed automatic transmission. GM Canada's Stew Low offered an explanation that made no mention of a warning shot over the Canadian Workers Union (CAW) bow, in advance of contract negotiations. "With the dynamic of our changing portfolio, there just wasn't a new transmission to put into there." Translation: four-speeds are so 1939 and you guys cost too much. The announcement caused some political scuffles. The provincial (left-leaning) NDP party implored Ontario Premier Dalton McGuinty to step in and stop the rampant job losses in the automotive industry. As The Big 2.8 have shuttered plants and moved production to cheaper jurisdictions, investments from Asian automakers have not risen to produce employment break-even. It's a shame too, since Windsor was on a roll. On the plus side, given Ontario's more diversified economy, it appears it can shelter a contraction of the NAFTA-zone's automotive industry with less pain than Michigan. But, unless a career at GM provides a good stepping stone to working on Bay Street, that won't soothe any of the CAW members' worries.

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Gardiner Westbound on May 13, 2008
The provincial (left-leaning) NDP party implored Ontario Premier Dalton McGuinty to step in and stop the rampant job losses in the automotive industry. - NickR GM hardly requires 4-speed transmissions with sales falling off a cliff. Nonetheless the NDP expects GM to build them. Even socialist East Germany eventually abandoned the Trabant! General Motors keeps cutting jobs after getting $235 million in taxpayers' money to boost Ontario operations. The McGuinty government caved into CAW union boss Buzz Hargrove's histrionics and intimidation and gave away the farm without broad employment guarantees. Ford pulled a similar recent stunt. It closed a Windsor plant then announced for a $60-million taxpayer gift it will reopen. So far McGuinty has delivered $30-million. GM may also be putting a shot across the CAW's bow. Be reasonable in the current contract negotiations, a strange concept for Hargrove, and the closing may be softened or rescinded.

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Johnny Canada on May 13, 2008

Was this the same facility where a CAW member stated that he could make more money working at Tim Hortons? Problem solved.

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Raskolnikov on May 13, 2008

@Gardiner "Taxpayer gift." I love it. Call me Santa Claus. Although the 4 speed auto has been a good soldier for many years, its time to retire it in most applications.

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on May 13, 2008

"I thought that the 6-speed auto (currently available in several GM vehicles, most notably the 4 and 6cyl Malibu) which is built “offshore” (China?), was slated to be transferred to a “North American” facility. Looks like Mexico, now." GM has built new transmission production in Ohio and is slated to put more production in St. Catherines. Buzz was busy playing the fiddle when all the jobs left.

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