It’s the end of an era in Oshawa, Ontario.
General Motors (NYSE: GM) is closing its vehicle assembly plant in the blue-collar city east of Toronto. The Oshawa plant currently produces cars such as the Chevrolet Impala and the Cadillac XTS. It today employs 2,522 auto workers and has been the main employer in the city since car production began in Oshawa back in November 1953. In the mid-1980s, the Oshawa plant employed nearly 25,000 people.
Unifor, the union representing auto workers at the Oshawa plant, said that its members have been informed by General Motors that no cars will be assembled at the plant after December 2019. The Oshawa closure is part of a broader global restructuring at General Motors. Unifor said in a statement that it will be holding talks with General Motors this week.
Oshawa Mayor John Henry told Toronto media over the weekend that he hopes the news is "just a rumour," and adds that he has not spoken to anyone from GM about the plant closure. "It's going to affect the province, it's going to affect the region ... The auto industry's been a big part of the province of Ontario for over 100 years," said Mayor Henry.
In 2009, as part of an effort to bailout the auto sector, General Motors received several billion dollars in loans and support from the Canadian and Ontario governments as it went through bankruptcy protection. In October of this year, Export Development Canada, the national export credit agency, showed that there was still an outstanding loan to General Motors Corp. for more than $1 billion. The loan appears to be attributed to a bankrupt version of the company that was split off from a viable version of General Motors back in 2009.
GM shares began Monday up 54 cents, or 1.5%, to $36.48
