GM Canada Confirms 2015 Production Changes at Oshawa Assembly and Offers Retirement Incentives


GM Canada Confirms 2015 Production Changes at Oshawa Assembly and Offers Retirement Incentives

2015-04-30

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Oshawa, Ontario (April 30, 2015) – GM Canada today confirmed that the end of production for the Chevrolet Camaro at Oshawa Assembly (as first announced in December, 2012) will be November 20, 2015.  The company will begin a voluntary retirement canvass at the Plant to minimize employment impacts and align to market demand.  After November 20, 2015, Oshawa Assembly will continue to produce 5 vehicles, and will move to three shifts of production between its Flex and Consolidated Lines.

Working with local Unifor leadership, retirement incentives will be offered to eligible hourly workers at Oshawa Assembly under the terms of the Unifor Master Agreement to manage the expected reduction of approximately 1,000 positions throughout 2015.  The Oshawa Assembly plant currently employs approximately 3,600 hourly workers of which 2,100 are eligible for the retirement incentives.  The total number of retirements will be determined through the canvass process and implemented through the remainder of 2015.

In December 2015, Oshawa Assembly Will Have Approx. 2600 Hourly Employees, Building 5 Vehicles on 3 Shifts

Oshawa Assembly today manufactures six vehicles: the Chevrolet Impala, Chevrolet Camaro, Buick Regal and Cadillac XTS on its “Flex Line” (currently on three shifts) as well as the Chevrolet Equinox and the Chevrolet Impala Limited on the “Consolidated Line” (currently on one shift).  After November 20, 2015, Oshawa Assembly will continue to produce five vehicles.  Its Flex Line will move to two shifts thereafter and its Consolidated Line will continue on one shift. The majority of all industry assembly plants in North America currently run on two shifts. 

GM Canada continues to examine a range of longer-term opportunities and competiveness enhancements for Oshawa Assembly working with Unifor, government, supplier and community partners to ensure our operations are as innovative, efficient and cost competitive as they can be. Future product decisions will not be made until after Unifor national bargaining, scheduled for 2016. 

GM remains committed to Canada, the Company’s fifth largest country market globally for auto sales and also for vehicle production.  GM has recently announced more than $800 million in new investment in its CAMI facility in Ingersoll, Ontario.  On April 28, GM announced that its Canadian Engineering Centre located in Oshawa will expand as an innovation hub for “the connected car” and green technologies, two areas of critical importance for automotive customers and the future of the auto sector.

As a result of these production changes, GM expects to record restructuring charges of approximately $200 million primarily in the second quarter of 2015. These charges were included in GM’s guidance of restructuring charges impacting earnings before interest and tax (EBIT) adjusted given in January totaling approximately $700 million for 2015. In addition, these charges were incorporated in the company’s guidance for North America’s full-year EBIT-adjusted and EBIT-adjusted margin to improve on a year-over-year basis, after adjusting 2014 for the impact of recall costs.

 

About General Motors in Canada

Headquartered in Oshawa, Ontario, General Motors of Canada Limited (GMCL) employs more than 9,000 people across the country and is a recognized leader in green manufacturing.  GMCL markets the full range of fuel-efficient Chevrolet, Buick, GMC and Cadillac vehicles and related services through Canada’s largest automotive dealer network. More information regarding GMCL models can be found at www.gm.ca, or by following @GMCanada on Twitter.

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