By on August 19, 2015

GM Oshawa Plant Closure

GM Canada announced Wednesday it will make a small investment in Oshawa Assembly’s Consolidated Line thanks to increased demand of the Chevrolet Equinox.

“It’s a modest investment in terms of its size, but it increases the volume of stamping we do at CAMI to increase the run. (The increased stamping) will then boost Equinox production in Oshawa,” GM Canada’s VP of Corporate and Environmental Affairs David Paterson said in an interview with TTAC.

More body panels are stamped at CAMI than that plant’s assembly line can use, which required GM to utilize its “shuttle program” to transport excess Equinox bodies to Oshawa’s Consolidated Line for final assembly, according to GM.

The majority of the $12 million CAD investment will go to CAMI, though the detailed amount was not disclosed. Additional labor will not be needed to produce the additional Equinoxes.

While the success of an 11-year-old model (the Equinox went into its second generation as an enhanced refresh) is newsworthy, there is a larger issue at play.

“That investment has the effect of extending further the Consolidated Line until at least 2017,” said Paterson.

This is the fifth time the Consolidated Line’s death has been postponed in the last ten years, Paterson said. The Consolidated Line was most recently scheduled to shut down in 2016.

Speaking of the Consolidated Line, Paterson said: “It’s the gift that keeps on giving.”

However, the announcement still doesn’t ensure the long-term viability of the manufacturing facility.

Camaro production in Oshawa is scheduled to end this November, while next-generation Buick Regal production is rumored to move solely to Russelsheim, Germany in 2017.

While Cadillac currently produces the XTS in Oshawa, that nameplate will be discontinued at the end of its lifecycle in 2019. However, that best-before date doesn’t secure Oshawa until 2019. Production could be moved to Hamtramck or Fairfax as those assembly plants also build vehicles sharing the same platform, which are the Impala and LaCrosse. Should GM not opt to move production, but continue to sell the XTS in North America, the XTS could be the first Cadillac produced in China and imported to North America — but that’s a far reach.

GM announced they would make a $250 million CAD investment in CAMI for flexible manufacturing similar to Oshawa’s main flex line, seemingly securing the Equinox in Ingersoll, but no investments have been announced for continued production in Oshawa.

If manufacturing departs, GM looks to keep a significant presence in Oshawa for connected car R&D.

Former mayor of Oshawa, John Gray, has encouraged Canadians to boycott GM if jobs are lost. The future of Oshawa assembly activities won’t be announced until 2016 when the company starts labor talks with Unifor.

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14 Comments on “Equinox Gives Oshawa Consolidated Line Extended Life...”


  • avatar

    these rat banksters should envision assembling a Buick there but it’s been part of the Grand Plan to move production from Flint to China all along, conveniently aided by a pre planned and packaged BK and Rothschild engineered financial crisis.

  • avatar
    28-Cars-Later

    “while next-generation Buick Regal production is rumored to move solely to Russelsheim, Germany in 2017.”

    Yes, lets keep the oddball low selling high depreciation model going. Might as well make it a diesel too and complete the fail.

  • avatar
    mikey

    Ah ……yes ” The universe is unfolding as it should”……That , and a U.S. Dollar buying 1.28 Canadian.. New product for “Flex” …..? The UAW will settle with GM mid Sept . Look for UNIFOR to open up the the GM Canada contract at least 6 to 10 months earlier, than the Sept 2016 deadline.

    I haven’t been wrong yet.

  • avatar
    mikey

    Just a couple of details that weren’t covered . Yes , Equinox body’s are shuttled down the 401 to Oshawa consolidated. What the article doesn’t state, is that Oshawa Stamping , has been churning out Equinox sheet metal panels for at least 3 years, and shipping the other way down the 401. Another fact overlooked , Oshawa Stamping is contiguous , with both Oshawa, Flex , and Oshawa Consolidated , resulting in a huge reduction in shipping costs.

    Oshawa has a reprieve …….!

    • 0 avatar
      wmba

      I’ve read this article and your reply at least eight times. Confusing.

      Correct me if I’m wrong, but the investment is mostly at CAMI to increase stamping there, right? So fewer stampings need to be made at Oshawa and shipped to CAMI?

      So what’s happening at Oshawa is they’ll be getting more completed bodies from CAMI than at present and screwing together more of these Equinoxes, plus they’ll be able to use the stampings they now don’t send to CAMI to make even more Equinoxes. So shipping costs will actually rise due to more completed bodies coming from CAMI to Oshawa.

      Right? Or wrong?

  • avatar
    50merc

    Hope things turn out well for our Canadian friends. Equinoxes are very common around here.

  • avatar
    mikey

    Presently ….Right, the Cami body’s , are shipped to Oshawa and they run them with the W Impala… .Oshawa Stamping , is attached by a conveyor system to both Flex and Consolidated .

    Oshawa Stamping can produce and ship panels, with huge cost savings, compared to , truck , or rail shipping.

  • avatar
    Mandalorian

    Equinox isn’t a bad vehicle, but it’s stale in a hot segment. It and it’s cousin the SRX are in need of a refresh.

    • 0 avatar
      Pig_Iron

      I remember when they were new. We were surprised at how better the build quality was of the Equinox over the the Blazer. The SRX always seemed very handsome. I understand it’s moving to a new platform.

  • avatar
    Pig_Iron

    I hope I’m wrong, but there’s a big difference between making an announcement and actually carrying it out. Especially in the middle of a very hotly contested federal election campaign were the incumbent’s party is famous for capitulating to to the tax and spend demands of the corporatistas (in exchange for a little “under the table” to a secret off-shore account, of course… ‘cuz elections are expensive ya know, and direct corporate funding is ‘illegal’).

  • avatar
    mikey

    @….pig_iron…..As a retired GM Canada guy, and a Canuck. I thought exactly the same thing.

  • avatar
    abitolder

    Oh please, that last line about FORMER Mayor John Gray, he has not been mayor in this fine city for the last 2 terms, being soundly beaten by Mayor John Henry both times. Henry at least is trying to attract business and investment in the city, Gray just used city money to buy himself a Camaro to use for company business. Thank all he is gone.

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