Skip to main content
Sister Publication Links
  • Automotive News
  • Automotive News Europe
  • Automotive News Mexico
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • login
  • HOME
  • NEWS BY BRAND
    • Aston Martin
    • BMW
    • Daimler
    • Fiat Chrysler
    • Ford
    • General Motors
    • Honda
    • Hyundai
    • Mazda
    • Mitsubishi
    • Nissan
    • Subaru
    • Tata
    • Tesla
    • Toyota
    • Volkswagen
    • Volvo
    • Mini
    • Rolls Royce
    • Mercedes Benz
    • Smart
    • Alfa Romeo
    • Chrysler
    • Dodge
    • Ferrari
    • Fiat
    • Jeep
    • Lancia
    • Maserati
    • Ram
    • Lincoln
    • Buick
    • Cadillac
    • Chevrolet
    • GMC
    • Acura
    • Kia
    • Infiniti
    • Jaguar
    • Land Rover
    • Lexus
    • Audi
    • Bentley
    • Bugatti
    • Lamborghini
    • Porsche
  • News
    • Auto Shows
    • Photo Galleries
    • Automakers
    • Suppliers
    • Retail
    • Government Relations
    • Trade and Tariffs
    • Technology
    • Labour
    • Lawsuit challenges Trump's authority on steel, auto tariffs
      Automaker-supplier relationships take a hit
      Ghosn's ace for growth: Suppliers
      In-demand tech puts wary suppliers on guard, study finds
    • Ontario aims to replace GM with Magna, Martinrea or other in Oshawa
      FCA to idle Ontario minivan plant due to parts shortage
      Supplier Brose cutting 100 jobs in Ontario, report says
      Magna's Walker: Pair up to keep cars affordable
    • AutoCanada sues former CEO Patrick Priestner for $250M over dealership acquisitions
      Rolls-Royce names BMW exec its new sales VP for Americas
      How GM's Oshawa closure could affect sales, dealerships
      Commission sales seem to benefit few people, Ontario dealer association says
    • Level 3 autonomous vehicles now allowed on Ontario roads
      Ford adds 149,652 vehicles in Canada to Takata airbag recall
      Honda wants recall notices to be part of registration renewals
      All wet: Rain could delay the arrival of self-driving future
    • A look at which automakers in Canada meet USMCA's 75% content rule
      Canada seeks Pelosi's support in push to lift U.S. metal tariffs
      How Canada's auto industry can take advantage of new trade deals
      Canada says it will stay out of U.S. ratification fight over new NAFTA
    • Vehicle screens go super-sized at CES as tech catches up
      All in a day's work
      Ford commits US$4 billion to autonomous vehicles, forms new subsidiary
      Massive data breach at Canadian company hits several automakers, report says
    • GM Canada says it will find 2,400 jobs for Oshawa workers
      FCA to idle Ontario minivan plant for 8 days, union says
      Unifor calls for boycott of GM vehicles if automaker closes Oshawa plant
      Unifor's Jerry Dias, Magna's Don Walker named Automotive News All Stars
    • Toronto Auto Show
  • Opinion
    • Blogs
    • Chevy's 2019 Blazer: More Camaro, less Equinox
      Trump's troubling definition of victory
      The 2019 Nautilus: Lincoln's Cadillac Super Cruise fighter?
      What Cadillac dealers can expect from Steve Carlisle
  • EVENTS, WEBINARS & AWARDS
    • 2018 Auto News Canada All Stars
    • Best Dealership To Work For
    • Canada Congress
    • Webinars
    • More women in dealerships is just plain good for business
    • VIDEO: Why Ford's Hinrichs is bullish on USMCA
      Ontario aims to replace GM with Magna, Martinrea or other in Oshawa
      Dealers told standalone stores 'difficult to remain profitable'
      Ford's Joe Hinrichs: Plant closures have 'cascading effects' on industry
  • +MORE
    • NEWSLETTERS
    • SUBSCRIBE
    • CLASSIFIEDS
    • CONTACT US
    • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. Canada
November 26, 2018 12:00 AM

GM's Oshawa closure doesn't reflect state of Canada's auto industry, expert says

John Irwin
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    GM CANADA
    The General Motors Oshawa Assembly Plant has been building vehicles in Canada since Nov. 7, 1953.

    Joe McCabe, an analyst who in 2014 predicted that the GM Oshawa, Ont., assembly plant would close by 2019, said the factory’s planned closure was the result of GM needing to get its product mix in order and should not be read as a sign of the imminent demise of Canadian auto manufacturing.

    McCabe, the CEO of AutoForecast Solutions LLC, said the warning signs for Oshawa have been there for years. The plant builds two low-volume cars, the Cadillac XTS and Chevrolet Impala, and does final assembly on Chevrolet Silverado and GMC Sierra pickup bodies imported from the United States.

    “We had no product in Oshawa past this Unifor agreement back then, and that was based on product mix and capacity utilization,” McCabe said. “It wasn’t based on NAFTA 2.0 or anything else of that nature, which just adds more fuel to the fire about where they’re going to invest.”

    GM on Monday said it would cut about 15 per cent of its salaried workforce and could close three North American assembly plants as it discontinued production of six cars models in 2019. Oshawa, as well as plants in Michigan and Ohio, have not bee allocated product beyond 2019. The moves are part of a larger shift in its global strategy to sell more profitable vehicles as the North American new-vehicle market declines and as the company invests in electric vehicles and autonomous technology.

    “Everyone thought [former Fiat Chrysler CEO Sergio Marchionne] was crazy when he did this with the [Dodge] Dart and [Chrysler] 200 a few years go, but he was a prognosticator. He sort of saw the future of getting out of vehicles that are just not profitable,” McCabe said.

    Vehicle assembly in Oshawa dates back to the early 20th Century. Its planned closure is the latest example of Canada losing auto assembly jobs as automakers invest in Mexico and the southern United States. Still, McCabe said it would be a mistake to read much more into the plant closure’s meaning beyond what it says about GM’s product strategy.

    “They need to focus on the product mix that is selling for them: crossovers and larger. And they have to have better utilization of their existing capacity,” McCabe said.

    He said most other Canadian plants, including GM’s CAMI plant in Ingersoll, Ont., Ford’s factory in Oakville, Ont., and FCA’s plant in Windsor, Ont., appear to be safe as they assemble vehicles that are crucial and profitable to those automakers. Toyota, for instance, said earlier this year that it would spend $1.4 billion to upgrade two of its three Ontario assembly plants to build the RAV4 crossover.

    The only other plant that might be uncertain, he said, is FCA’s Brampton, Ont., assembly plant, as questions over the future of the Chrysler and Dodge brands remain.

    Related Articles
    GM to close Oshawa plant amid global restructuring
    GM takes painful measures to avoid another near-death experience
    Recommended for You
    Digital Edition
    Thumbnail
    View latest issue
    See our archive
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up today for our Weekly Newsletter, Daily Newsletter and Breaking News Alerts. We'll deliver the news you need to know straight to your inbox.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Subscribe Today

    An Automotive News Canada subscription includes 12 monthly issues – delivered in print to your doorstep, and digitally to your inbox – plus unlimited, 24/7 access to our website.

    Subscribe
    Connect With Us
    • Facebook
    • Twitter
    • Instagram

    Our Mission

    The Automotive News Canada mission is to be the primary source of industry news, data and understanding for the industry's decision-makers interested in Canada.

    Contact Us

    PO Box 243
    Station A
    Windsor, ON
    N9A 6K7

    1-877-812-1257

    Email Us

    Resources
    • About us
    • Contact Us
    • Digital Edition Archive
    • Advertise with Us
    • Reprints
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    Copyright © 1996-2019. Crain Communications, Inc. All Rights Reserved.
    • HOME
    • NEWS BY BRAND
      • Aston Martin
      • BMW
        • Mini
        • Rolls Royce
      • Daimler
        • Mercedes Benz
        • Smart
      • Fiat Chrysler
        • Alfa Romeo
        • Chrysler
        • Dodge
        • Ferrari
        • Fiat
        • Jeep
        • Lancia
        • Maserati
        • Ram
      • Ford
        • Lincoln
      • General Motors
        • Buick
        • Cadillac
        • Chevrolet
        • GMC
      • Honda
        • Acura
      • Hyundai
        • Kia
      • Mazda
      • Mitsubishi
      • Nissan
        • Infiniti
      • Subaru
      • Tata
        • Jaguar
        • Land Rover
      • Tesla
      • Toyota
        • Lexus
      • Volkswagen
        • Audi
        • Bentley
        • Bugatti
        • Lamborghini
        • Porsche
      • Volvo
    • News
      • Auto Shows
        • Toronto Auto Show
      • Photo Galleries
      • Automakers
      • Suppliers
      • Retail
      • Government Relations
      • Trade and Tariffs
      • Technology
      • Labour
    • Opinion
      • Blogs
    • EVENTS, WEBINARS & AWARDS
      • 2018 Auto News Canada All Stars
      • Best Dealership To Work For
      • Canada Congress
      • Webinars
    • +MORE
      • NEWSLETTERS
      • SUBSCRIBE
      • CLASSIFIEDS
      • CONTACT US
      • DIGITAL EDITION