The likely shutdowns have already opened up GM to political pushback, Bloomberg reports, with the US plants in places that have been economically devastated by job losses and pressure on wages for decades. GM propulsion plants in White Marsh, Maryland and Warren, Michigan will also be shut.
According to Chiodo, the Oshawa plant has "some of the best employees in North America".
GM says it is maintaining its profitable lineup of SUVs and trucks but will shift away from some of its smaller vehicles that haven't seen strong sales.
"We tried to get his attention on this issue two years ago", Mr. Ryan said. During today's conversation, I pressed GM again to provide new opportunities to the Lordstown workers and take advantage of the skilled workforce there.
- General Motors announced a restructuring plan Monday that will affect thousands of workers in both the United States and Canada. The Cruze compact vehicle will be discontinued in the U.S. market in 2019. The affected facilities build cars that will not be sold in the USA after next year. "GM workers have been part of the heart and soul of Oshawa for generations - and we'll do everything we can to help the families affected by this news get back on their feet". "These actions are expected to increase annual adjusted automotive free cash flow by $6 billion by year-end 2020 on a run-rate basis". The company has said tariffs on imported steel, imposed earlier this year by the Trump administration, have cost it $1 billion.
Further measures to achieve this goal include a reduction of salaried workforce and the reorganization of the company's global product development staffs. GM will reduce salaried and salaried contract staff by 15 percent and executive ranks by 25 percent.
The reductions could ripple through auto parts suppliers such as Aptiv and Magna International, Michaeli said.
Barra is reducing staff from operations that make conventional cars and hiring people who can design electric cars or add software prowess to GM Cruise LLC, the automaker's autonomous vehicle unit in San Francisco.
Steve Rattner, the head of former President Obama's auto task force who oversaw the GM and Chrysler bailouts, said the announcement shouldn't be construed as a violation of the bailout agreement because the industry has changed and the companies need to be able to adapt.
The moves are meant to shift resources to investing in electric and autonomous vehicles and to prepare for a downturn in the auto market, the automaker said. "That adds up to more than 8,000 jobs, after almost 18,000 salaried employees were offered buyout packages last week". In Ontario, it plans to halt production of the Chevrolet Impala and Cadillac XTS by the final quarter of 2019.
A Canadian union, Unifor, which represents most unionized auto workers in Canada, said Sunday it was informed by GM that there would be no product allocated to the plant in Oshawa, about 37 miles (60 km) from Toronto, after December 2019. GM said its slimmed down production plan would allow it to share technology across all of its vehicles, reducing the amount of time and labor it takes to build cars.
Jim Graham, the former president of the United Automobile Workers union that covers employees at GM's Lordstown plant, called the announcement "depressing", adding: "Hopefully we can do something".
Union representatives haven't given up hope that Oshawa GM jobs can be saved. The auto manufacturer says it plans to close five facilities in 2019, including assembly plants in OH and MI, and reduce its workforce by 15 percent.
All of the products now being assembled at those three plants are expected to stop being produced by the end of 2019.