MONTREAL, Nov 26, 2018 (BSS/AFP) – General Motors is expected to announce
on Monday the closure of a factory in the Canadian city of Oshawa, putting
almost 3,000 jobs at risk, Canadian channel CTV reported.
The decision is linked to the American automaker’s plans for a
comprehensive global restructuring, the channel reported Sunday, citing
multiple anonymous sources.
The plant in Oshawa, about 60 kilometers (40 miles) northeast of Toronto,
was built in 1953, according to the manufacturer’s website.
It currently employs approximately 2,800 people and assembles Chevrolet
and GMC pickups as well as Chevrolet Impala and Cadillac XTS sedans.
“I’m hoping it’s just a rumor,” Oshawa Mayor John Henry said. “Until we
hear something, we don’t know.”
GM has three other sites in the province of Ontario. It is unclear whether
they will also be affected.
Last month, the company announced plans to reduce its workforce across
North America to save money through voluntary redundancies, and did not rule
out the possibility of layoffs.
The plans stand to affect 50,000 employees across the US, Canada and
Mexico. About 18,000 of them, or 36 percent of the workforce, are eligible
for voluntary redundancy.
GM’s earnings for the quarter ending September 30 were $2.5 billion,
eclipsing expectations in the latest quarter, despite the impact of tariffs
and slipping sales volume.