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GM to close plant in Oshawa, Ont.

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General Motors Canada has announced it will close its production facility in Oshawa, Ont. in 2019 along with four plants in the United States.

The auto manufacturer said the closures are part of a strategy to transform its product line and manufacturing process in order to meet changing demand in the transportation industry.

“The actions we are taking today continue our transformation to be highly agile, resilient and profitable, while giving us the flexibility to invest in the future,” said GM Chairman and CEO Mary Barra in a statement. “We recognize the need to stay in front of changing market conditions and customer preferences to position our company for long-term success.”

GM says the plan will will save the company $6 billion by the year 2020.

The move will affect roughly 14,700 factory and white-collar jobs in North American including about 2,500 high-paying jobs in Oshawa.

The union representing workers at the Oshawa plant is scheduled to meet with the company Monday.

In a statement released Monday, Unifor President Jerry Dias said, “Unifor does not accept the closure of the plant as a foregone conclusion. Oshawa has been in this situation before with no product on the horizon and we were able to successfully make the case for continued operations. We will vigorously fight again to maintain these good-paying auto jobs.”

Ahead of the announcement Monday, employees at the plant stopped working as they awaited details on the company’s plan to close the facility.

Ontario NDP MPP Jennifer French, who represents Oshawa in the provincial legislature, said on Sunday she found reports of a possible closure “gravely concerning.”

“If GM Canada is indeed turning its back on 100 years of industry and community – abandoning workers and families in Oshawa – then this is a callous decision that must be fought,” said French in a statement. “Oshawa Carriage Works began 140 years ago and became the cornerstone of GM. GM did not build Oshawa – Oshawa built GM.”

Premier Doug Ford issued a statement calling Monday a “difficult day” for workers and their families at the GM plant.

“Our government has already begun exploring measures to help impacted workers, businesses and communities cope with the aftermath of this decision,” said Ford. “We are looking at how best to align our programs to ensure maximum support is available for affected employees and their families. In speaking with GM, we have stressed the importance of supporting their employees through this difficult transition.”

The shift in production will also affect GM operations in Ohio, Maryland, and two facilities in Michigan. The Oshawa plant is the only Canadian plant that is slated closed. GM also operates manufacturing plants in St. Catharines, Ont. and Ingersoll, Ont.

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