Federal and provincial governments in Canada have offered more than $100 million (USD $77 million) for improvements to the Cambridge and Woodstock plants, CTV news is reporting.
The incentives are part of a $421 million (USD $323 million) investment that will be used for light metal stamping in Woodstock, which makes the RAV4, and plant improvements in Cambridge, which produces the soon-to-be-gone Toyota Corolla and Lexus RX vehicles. Toyota has said it will move the Corolla to Mexico, but hasn’t announced what would replace it at the Cambridge plant.
The Canadian government tipped in $34 million in 2013 for improvements to the Cambridge plant to produce the RX 450h.
The former mayor of Oshawa, John Gray, is telling Canadians to boycott General Motors if the automotive giant pulls the plug on the Camaro at its plant north of the border, the Toronto Sun is reporting.
“That’s the type of pressure that is applied so that GM comes to its senses and maintains production in Oshawa after next year,” Gray told the newspaper this week.
General Motors said it would end production of the Chevrolet Camaro at the Oshawa Car Assembly plant and move production to Michigan on Nov. 20. Gray said the move would end about 1,000 jobs at the plant, and dim the prospects of an already bleak future for the plant.
First announced December 19, 2012, GM Canada’s Oshawa Assembly facility will officially cease production of the Camaro on November 20, 2015 in conjunction with the car’s next generation, GM announced today. Camaro production remained at the Oshawa plant a year longer than initially promised in 2012.
Assembly shifts will be reduced from four to three between the “Flex” and “Consolidated” lines. Currently, the “Flex” line is on three shifts while the smaller line is on one shift. GM Canada will “begin a voluntary retirement canvass” to reduce worker head count before implementing any layoffs. GM Canada President, Stephen K. Carlisle, stated “60 percent of our hourly workforce are nearing retirement” age and the company will offer incentives to eligible employees looking to retire early.
Not long ago, Canada was, according to ex-GM CEO Dan Akerson, the most expensive place in the world to build a car. A strong Canadian dollar meant that the cars and crossovers built at GM’s plants in Oshawa and Ingersoll, Ontario, weren’t as profitable as those built in the US or Mexico, where labor costs were significantly lower.
But even a newly weakened Canadian dollar isn’t going to save Oshawa.
News that GM will be sending some production of the Chevrolet Equinox to their Ramos Arizpe, Mexico plant passed without much fanfare – GM’s PR machine was much more interested in touting the move of the Cadillac SRX to Spring Hill, Tennessee. While the Equinox’s move to Mexico will backfill capacity at that plant, it spells another blow for the future of GM’s Oshawa, Ontario plant.
A report in Automotive News outlines how General Motors has committed to building a new Buick model at their plant in Russelsheim, Germany. According to AN, the logical choice is the next-generation Buick Regal, also known as the Opel Insignia, since this is a good fit for Buick, and it allows GM to use up some of the excess capacity that is currently plaguing their European operations. But for GM’s venerable Oshawa plant, this is not good news.
Automotive News reports General Motors will release Thursday the results of attorney Anton Valukas’s three-month independent internal investigation into how and where the automaker went wrong before recalling 2.6 million vehicles affected by an out-of-spec ignition switch linked to 47 accidents and at least 13 fatalities. The announcement will come at 9 a.m. Eastern via webcast, with what CEO Mary Barra says will be an “unvarnished” look at the events surrounding the recall. In addition, GM will have an update on plans for compensating victims of the switch, though the attorney heading up the affair, Kenneth Feinberg, says a formal announcement won’t come until a few weeks down the road. Reuters adds the Valukas report will likely exonerate Barra, former CEO Dan Akerson and other senior execs and board members of any wrongdoing over the recall, with “a number of people” to be formally dismissed from the company due to their ties to recall. The report will be turned over to the federal government by the end of June.
The government of Ontario has announced it will sell its shares in General Motors as part of an effort to fund new public transit programs in the Greater Toronto Area. But the move could end up hastening the demise of GM’s Oshawa plant, located in the same metropolitan area.
While the all new 2014 Impala is impressing reviewers, like Consumer Reports calling it this year’s highest scoring sedan, General Motors has decided to keep the outgoing Impala as a low cost option for fleet customers until 2016. According to Automotive News, the automaker had originally planned to keep the old Impala, branded the Impala Limited, in production for rental operators as well as government and corporate fleet customers, into next year. “The Impala Limited has done extremely well. Our fleet customers know the car and like it,” a GM spokesman said last week. “It’s a business opportunity that we want to continue to fulfill.”
The continued production of the Impala Limited means that the Oshawa Car Assembly plant in Ontario will remain open until at least 2016.
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- El scotto Farley and Billy Ford need to put on some jeans, flannel shirts and PPE. They should (but never will) walk the factory floors and ask "what is wrong?", "what could we be doing better?"Let me caveat that. Let Jimmy and Billy explain that any constructive criticisms will be non-attributable. Oh they can use platitude like making the house level again or setting the ship on the right course.Sadly I suspect than many, many Power Points will die in vain in the executive suites in Dearborn. At least three if not four very expensive consulting teams will be hired to review Ford's QC problems. Four consulting teams will mean four different solutions. None them will be put in action. Ford will still have huge QC problems.