CAW: Oshawa Needs New Product To Survive

Derek Kreindler
by Derek Kreindler
caw oshawa needs new product to survive

GM’s announcement that it would move Camaro production out of Oshawa has left one of GM’s best plants in a lurch, and the CAW says that the plant’s very survival is at stake.

Moving the Camaro to GM’s Lansing, Michigan plant makes sense; the Camaro is the sole rear-drive product built at Oshawa, while the Cadillac CTS and ATS are not only built in Lansing, but expected to share a platform with the Camaro in the coming years. But that’s raised questions about what GM will do to keep Oshawa going. Speaking to The Globe and Mail, CAW President Ken Lewenza expressed concerns regarding a possible slow decline for the plant

“A fully utilized plant today is on three shifts,” he said. “If this 100,000 units drops it to two shifts – which I anticipate it does – without any replacement vehicles, then the next move is one shift and [then] gone.”

The Camaro move will not only affect Oshawa, but also GM’s engine plant in St. Catharines, Ontario and a Johnson Controls plant in nearby Whitby. Both plants are nearly entirely dependent on the Camaro and will likely have to close following its departure. Lewenza claimed that during this summer’s negotiations, GM gave no notice that they planned to move the Camaro out of Oshawa. Without it, Oshawa will be left with the Cadillac XTS Buick Regal and the Chevrolet Impala

Complicating matters is the Canadian government’s reluctance to sell their stake in GM. While officials have previously stated that they don’t plan to hang on to their shares for the long term, there’s still the pesky matter of Canada’s $13.7 billion bailout package to GM. As part of the agreement, 16 percent of GM’s production must come from Canada, but it looks like the continued production of the previous generation Impala should help satisfy the requirements until June, 2014. Beyond that, it’s anyone’s guess. GM recently invested $185 million into the facility, but the figure pales in comparison to the billions it has received from the Canadian government.

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  • Mikey Mikey on Dec 21, 2012

    @ Scott_314....Small niche? over 88,000 units sold in 2011? What kind of people, drive what kind of cars? Do tell. Like,say a Camry, or a Tahoe. How about the BMW driving guy with the staggering loan/payments. So the guy that sits behind a keyboard and insults a whole group of people, he doesn't know? Whats he drive?

  • Potemkin Potemkin on Dec 24, 2012

    Whoa. If union wages keep declining non union wages will also decline. It will become a race for the bottom for everyone except those at the top who have mismanaged the industry into the ground yet still take home 10's of millions of dollars in salary and bonuses.

    • CJinSD CJinSD on Dec 24, 2012

      Wages decline because of a surplus of labor. Labor is in surplus because our governments are in the hands of anti-business regimes. Blaming organized crime's weakness for declining wages is like blaming farmers for a drought. It was their strength that contributed to wiping out the economy and destroying the value of labor.

  • RHD I wonder if these will be as easy to steal as so many other Kias are...
  • Zerog Isn't this the car that the self anointed AutoExtremist said would finally shut down Tesla AND the Prius?Just like his father - that Detroit bubble does him no good
  • Zerog When will the media admit that Mary Barra has simply been a disaster of a CEO, and "Dan the Man" Akerson is to blame?
  • Tassos When the Volt was on sale, it cost twice as much as the (better looking!) Chevy Cruze on which it was based. The interior of the Volt did not match that lofty price either. I like plug-in vehicles with a good Electric only range and no range anxiety. People with a 40 mile commute each way, if they were allowed to free charge at the office especially, could save some $ with the Volt, but not as much as to justify its lofty price.The 2nd gen VOlt was less nerdy looking than the 1st, but also even more similar to the new Cruze and indeed the Civic, which cost almost HALF. Then the geniuses at GM made a 2-door Caddy out of the Volt, the ELR, which was much smaller inside than the already cramped Volt, and... asked for... 4 times the price of the CRUZE. Don't remember the failed Caddy Cimarron? Neither did those morons.So a good idea in principle was screwed beyond recognition. GM Bled billions despite the lofty price, sold a bunch of VOlts, and finally had to cry "UNCLE". The end.I am not at all attracted by the VOlt's lousy interior. Its gas only MPG is also lousy compared to the ICE competition. A prius was 50% cheaper and far more sophisticated mechanically and got a stellar 50 MPG overall, and could be had in plugin with 10-20 mile range (the current one will double that again).
  • Buickman GM marketing killed many a car.