Ontario is home to a number of auto plants, both import and domestic, union and non-union, as well as numerous suppliers. None of them are so tightly intertwined as General Motors is with the town of Oshawa, about 40 miles from Toronto (though, as any area resident will tell you, it’s really 2 hours away, thanks to our horrendously inadequate infrastructure). For nearly a century, GM has been building cars in Oshawa in one form or another, as the plant has established a reputation as one of GM’s best, consistently building high quality cars, trucks and crossovers over the decades. But that tradition may be coming to a close by 2016.
The W-Body Chevrolet Impala, so beloved by the horribly biased, anti-Detroit, anti-GM staff and readership of TTAC, will live on for one more year, as a fleet vehicle dubbed the “Impala Limited”.
GM announced a $250 million dollar investment for the CAMI plant in Ingersoll, Ontaro. CAMI is the main production site for the Chevrolet Equinox and GMC Terrain (also known as the Theta crossovers), two of GM’s best selling models, and the investment comes amid uncertainty over the fate of CAMI itself.
Upon receipt of a multi-billion dollar loan from the Canadian government, General Motors signed a “Vitality Commitment”, essentially a covenant in the loan agreement between GM and Canada’s government, which guaranteed that a certain amount of GM’s North American production would remain in Canada. That number is widely reported as being 16 percent, while page F-69 of GM’s IPO filings outlines that the covenant is valid until GM repays its loan commitments or until December 31, 2016, whichever comes later.
While Oshawa has widely regarded as one of GM’s best plants in terms of producing high-quality vehicles, the future of GM’s Oshawa plant is looking increasingly bleak.
The Windsor Star is reporting that the CAW “has all but given up” on trying to re-open the Oshawa Consolidated line that was closed earlier this year. The Star quotes CAW President Ken Lewenza as saying
“We’re going to keep raising it until the deal is done…But the reality is vehicle production is based on market and market is based on capacity and GM told us they don’t need the capacity.”
The closing of the Oshawa Consolidated Line supposedly had GM in the bailout doghouse – the company was supposed to maintain a certain level of production in Canada according to the terms of their bailout package. As far as we know, GM hasn’t replenished that yet, but they are throwing the Canadian federal and Ontario governments a bone by investing an undisclosed nine-figure sum into R&D at Oshawa.
Calling Canada “ the most expensive place in the world to build a car right now“, Dan Akerson threw his hat into the “ hourly wage costs need to come down” ring at GM’s annual shareholders meeting on Tuesday.
General Motors will announce tomorrow that their consolidated line at Oshawa, currently building both the Chevrolet Equinox and Chevrolet Impala, will close. 2,000 of the 4,000 jobs at the Oshawa plant are located at the consolidated factory, and GM apparently won’t be re-investing in the facility.
Latest Car ReviewsRead more
Latest Product ReviewsRead more
- SCE to AUX I didn't know they had 80 employees to lose.
- SCE to AUX Discounting for EPA estimates, full load, and working strictly between 20% and 80% charge, I estimate about 80 miles of real, actual range.Useful, I suppose, but definitely local service. If you can refill over lunch then maybe you can double that distance.Delivery work is notoriously fuel inefficient, so an electric van could make business sense depending on the MSRP.
- Syke Just got my Bolt's battery recall done yesterday. Happily, we've got a dealer that's supporting the Bolt competently, getting the battery kit was supposed to take five weeks since I signed the work order. It took two and a half. Pulled the car in 0730 Monday, got a call at 1600 that afternoon saying I could pick it up. Didn't get down there until this morning, 255 miles range with frost on the windows. I'm happy.
- Syke Nice. Competent. Definitely a useful tool.
- Dukeisduke VinFast? More like SinkingFast.