'All options on the table' to save GM Oshawa, federal government says

Despite having all federal options to save General Motors’ assembly plant in Oshawa, Ont. on the table, Canada’s economic development minister said Monday that a meeting with the automaker’s CEO in Detroit didn't change the planned outcome of the factory.

Navdeep Bains, speaking in Windsor, Ont., before the meeting said the federal government “stands shoulder to shoulder” with the autoworkers and did not rule out federal financial assistance as a way to keep General Motors operating its assembly plant northeast of Toronto.

But after meeting with Mary Barra, he didn't sound convinced the automaker would ever reverse course.

“The first thing I raised was the future of Oshawa where I urged her to reconsider the decision to close the plant,” Bains said. “I regret that GM’s position on Oshawa has not changed, but our government has been clear from the start: we stand ready to play an active role to find a solution for Oshawa’s workers and in shaping the future of the auto industry. GM is making a mistake by giving up on Oshawa’s workers, and we’re not about to do the same.”

GM said in November it would no longer allot the plant product after 2019. The automaker said it will stop the truck shuttle program that sees it ship unfinished, outgoing models of the GMC Sierra and Chevrolet Silverado to Oshawa from a plant in Indiana. The automaker also said it will stop building the Chevy Impala and Cadillac XTS, both of which are assembled in Oshawa.

GM Canada said in a statement in January that “economic factors created an imperative need to consolidate operations, reduce costs and improve cash flow.”

“We firmly believe GM is making a mistake by leaving Oshawa,” Bains said after a funding announcement at Tier II supplier APAG in Windsor. “We’re willing to partner up and be part of the solution.”

Bains said APAG, a Swiss company that mainly supplies BMW, Volkswagen, Audi and Porsche, would get $4 million to help establish a North American headquarters and a research and development centre in Windsor. The electronic control units that it will be made in Windsor will supply Volkwagen’s assembly plant in Spartanburg, S.C. The Windsor facility will employ about 150 people.

When asked if the federal government would offer GM a similar financial incentive to keep Oshawa open, Bains said: “All options are on the table.”

“We have a government that’s willing to step up and be a partner,” he said. “This is about GM having a long-term future in Oshawa. This is about making sure we secure mandates for GM in Oshawa.

MIND ‘MADE UP’

Bains’ Ontario government counterpart, Todd Smith, sounded a different tone. Smith, the minister of economic development, job creation and trade, said there was “nothing we could do” to change GM’s mind on Oshawa.

“It’s been put to us very clearly,” Smith said on Monday at the Detroit auto show, before his meeting with Dias. “The conversations went something like this: ‘We’re going to be shutting down a number of facilities across North America and around the world, and Oshawa is one of them.’ It was pretty clear their mind had been made up, and this wasn’t a decision that was made lightly or overnight.”

Smith said the Ontario government was willing to assist GM financially to keep the plant open, but the automaker rejected the offer.

“When we said if there’s anything we can do for you, [GM] said, ‘We’re not here to ask for money this time,’” he said. “Previously, that had been the case. They weren’t interested in any financial incentive or anything like that.”

Following his meetings with Bains, Ford and Smith, Dias said it appeared both governments were beginning to take a “different tact” and that he was confident the premier would reverse course and fight for the Oshawa plant’s future. Like Smith, Ford has repeatedly said there is nothing the provincial government could do to keep Oshawa alive.

“I think he’s going to come out with a different position now,” he said. “After some good engagement, I think he has a better understanding, now, of the industry.”

But Ford appeared to stay the course.

“We all want them to stay here in Ontario, but the reality is they aren't going to, at least that one plant," Ford told CBC News after the meeting. "Jerry always looks at things negative. I look at things in a positive fashion.”

RETRAINING

Smith said the Ontario government’s focus would be on helping Oshawa workers find new jobs and helping GM to grow the rest of its Canadian operations.

“We need… the Unifor folks to engage with their employees so that we could then help with our training colleges and universities ministry to get them the help that they need and the potential retraining that they need,” Smith said.

Speaking with Automotive News Canada, Dias said Unifor is solely focused on preventing Oshawa’s closure, though the union would not stop its members from pursuing retraining.

“Our members can take any retraining they want,” Dias said. “We would never prevent people from being trained in a variety of different things. But the reality is I’m not taking the position that it’s a fait accompli.”

GM said it would end the truck shuttle program that sees it ship unfinished, outgoing models of the GMC Sierra and Chevrolet Silverado to Oshawa from a plant in Indiana. The automaker also said it will stop building the Chevy Impala and Cadillac XTS, both of which are assembled in Oshawa.

GM Canada said in a statement in January that “economic factors created an imperative need to consolidate operations, reduce costs and improve cash flow.”  

The automaker also plans to shut down four plants in the U.S. as the company moves to reduce costs and focus on electric and autonomous vehicles.