GM to cut 4,000 jobs and close several facilities in Canada
11-21-2005, 09:18 AM
#1
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Taken from the CBC website:
"General Motors plants in Oshawa and St. Catharines, Ont., will shut down as the automaker announced closures at 12 North American facilities and 30,000 job cuts on Monday.
GM (NYSE:GM) chairman and CEO Rick Wagoner said the third shift at GM Canada's Number 1 plant in Oshawa will be cancelled in the second half of 2006, while the Number 2 plant will be closed in 2008.
GM chairman and CEO Rick Wagoner.
Speaking in Detroit, Wagoner also said the St. Catharines powertrain plant on Ontario Street West will cease production in 2008.
The closures mean about 3,880 jobs will be lost in Canada. The Oshawa Number 2 plant closure will mean 2,750 jobs will go, while 1,000 jobs will be lost with the end of the third shift at Oshawa Number One plant.
Closure of the powertrain plant in St. Catharines will cost about 130 jobs.
General Motors had about 20,000 employees in Canada prior to the latest cuts.
GM Canada president Michael Grimaldi was due to meet with the media at the company's Canadian headquarters in Oshawa late Monday morning. Canadian Auto Workers president Buzz Hargrove was also due to comment on the cuts following Grimaldi's address.
In the United States, the following assembly plants will be closed:
* Oklahoma City, Okla., in early 2006.
* Lansing, Mich., in mid-2006.
* Spring Hill, Tenn., at the end of 2006.
* Doraville, Ga., in 2008.
The third shift at the company's Moraine, Ohio, assembly plant will be cut in 2006.
Other GM plants affected by the cuts include:
* The Lansing, Mich., metal centre closing in 2006.
* The Pittsburg, Pa., metal centre ending production in 2007.
* A parts distribution centre in Portland, Ore., shutting in 2006.
* A parts distribution centre in St. Louis, Mo., which will be converting to a collision centre in 2006.
* A parts processing centre in Ypsilanti, Mich., closing in 2007.
* One additional parts processing centre, to be named later, shutting in 2007.
* The Flint, Mich., North 3800 engine facility ceasing production in 2008.
GM facing production glut
Wagoner said the closures and shutdowns will cut the company's annual production capacity by one million vehicles to 4.2 million unit a year by 2008.
GM's plants were reported to be operating at 85 per cent capacity, well below the plants of its Asian competitors.
Faced with falling demand and market share, and over-capacity at its manufacturing facilities, Wagoner said GM needed to make cuts.
"These actions are necessary for GM to get its costs in line with our major global competitors," Wagoner told employees.
"In short, they are an essential part of our plan to return our North American operations to profitability as soon as possible," he said.
Wagoner said Monday that GM is aiming to cut its costs by about $7 billion US by the end of 2006. That goal is about $1 billion US higher than its previous target.
GM lost almost $4 billion US through the first nine months of this year as it struggled to cope with its myriad of problems, which include high costs for labour, pensions and health care.
The company's struggles have prompted rumours that GM might file for bankruptcy, but Wagoner told employees last week that the company had no such plans."
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"General Motors plants in Oshawa and St. Catharines, Ont., will shut down as the automaker announced closures at 12 North American facilities and 30,000 job cuts on Monday.
GM (NYSE:GM) chairman and CEO Rick Wagoner said the third shift at GM Canada's Number 1 plant in Oshawa will be cancelled in the second half of 2006, while the Number 2 plant will be closed in 2008.
GM chairman and CEO Rick Wagoner.
Speaking in Detroit, Wagoner also said the St. Catharines powertrain plant on Ontario Street West will cease production in 2008.
The closures mean about 3,880 jobs will be lost in Canada. The Oshawa Number 2 plant closure will mean 2,750 jobs will go, while 1,000 jobs will be lost with the end of the third shift at Oshawa Number One plant.
Closure of the powertrain plant in St. Catharines will cost about 130 jobs.
General Motors had about 20,000 employees in Canada prior to the latest cuts.
GM Canada president Michael Grimaldi was due to meet with the media at the company's Canadian headquarters in Oshawa late Monday morning. Canadian Auto Workers president Buzz Hargrove was also due to comment on the cuts following Grimaldi's address.
In the United States, the following assembly plants will be closed:
* Oklahoma City, Okla., in early 2006.
* Lansing, Mich., in mid-2006.
* Spring Hill, Tenn., at the end of 2006.
* Doraville, Ga., in 2008.
The third shift at the company's Moraine, Ohio, assembly plant will be cut in 2006.
Other GM plants affected by the cuts include:
* The Lansing, Mich., metal centre closing in 2006.
* The Pittsburg, Pa., metal centre ending production in 2007.
* A parts distribution centre in Portland, Ore., shutting in 2006.
* A parts distribution centre in St. Louis, Mo., which will be converting to a collision centre in 2006.
* A parts processing centre in Ypsilanti, Mich., closing in 2007.
* One additional parts processing centre, to be named later, shutting in 2007.
* The Flint, Mich., North 3800 engine facility ceasing production in 2008.
GM facing production glut
Wagoner said the closures and shutdowns will cut the company's annual production capacity by one million vehicles to 4.2 million unit a year by 2008.
GM's plants were reported to be operating at 85 per cent capacity, well below the plants of its Asian competitors.
Faced with falling demand and market share, and over-capacity at its manufacturing facilities, Wagoner said GM needed to make cuts.
"These actions are necessary for GM to get its costs in line with our major global competitors," Wagoner told employees.
"In short, they are an essential part of our plan to return our North American operations to profitability as soon as possible," he said.
Wagoner said Monday that GM is aiming to cut its costs by about $7 billion US by the end of 2006. That goal is about $1 billion US higher than its previous target.
GM lost almost $4 billion US through the first nine months of this year as it struggled to cope with its myriad of problems, which include high costs for labour, pensions and health care.
The company's struggles have prompted rumours that GM might file for bankruptcy, but Wagoner told employees last week that the company had no such plans."
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11-21-2005, 10:13 AM
#5
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Join Date: Dec 2003
Posts: 541
by gm cuttin all those jobs it is no good for anyone. All the workers the cities that the plants are in and the government (not so much them). There goes have the lowest umemployment rate in history
[ November 21, 2005, 11:14 AM: Message edited by: trk2loud ]
[ November 21, 2005, 11:14 AM: Message edited by: trk2loud ]
11-21-2005, 10:27 AM
#6
Guest
Posts: n/a
It is good for some people. The shareholders, the employees that aren't getting cut, the management group, and GM's customers. UNtil the UAW realize that they can't hold these companies hostage with ridiculous demands, this will continue happening until there is no North American auto industry (which I wouldn't be too sad about anyways).
