Skip to main content
Sister Publication Links
  • Automotive News
  • Automotive News Europe
  • Automotive News Mexico
  • Automotive News China
  • Automobilwoche
Subscribe
  • Subscribe
  • 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
    • jag_f-type_r-front-driver-quarter-motion.jpg
      view gallery
      10 photos
      2021 Jaguar F-Type
      mercedesmaybach_gls_1.jpg
      view gallery
      10 photos
      2021 Mercedes-Maybach GLS 600
      fusion_crossover_2.jpg
      view gallery
      10 photos
      Ford Fusion crossover spy photos
      seltos_1.jpg
      view gallery
      8 photos
      2021 Kia Seltos
    • 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
    • Parts association says to think of vehicles as 'digital platforms'
      Ford-McDonalds-MAIN_i.jpg
      Canadian research allows Ford to use McDonald's coffee chaff in headlights
      Auto investment targeted by Ontario's new site selection challenge
      SUPPLIERS-MAIN_i.jpg
      Supplier concerns linger after UAW strike
    • caddlive2.jpg
      Cadillac Live digital showroom expands into U.S. after Canadian launch
      Mental health aid lifts staff, dealerships
      It might be time to decommission commission
      HGregNissan-MAIN_i.jpg
      Montreal's HGreg.com buys Fla. Nissan dealership from AutoNation
    • Volkswagen charged with violating Canada's vehicle emission standards
      35FIAT-07_i.jpg
      FCA recalls 10,000 Fiat 500 vehicles in Canada
      FCA PSA 2 rtrs web.jpg
      FCA, PSA work to avoid antitrust problems in merger
      SILVERADO-MAIN_i.jpg
      GM Canada recalls 75,000 pickups that could cause carpet fires
    • Trump, U.S. Democrats reach tentative deal on new NAFTA, sources say
      nafta.jpg
      Metals rules for light vehicles stall progress on the revised NAFTA agreement
      U.S. Congress has to move on new NAFTA, Trump says before Trudeau meeting
      Trudeau, Freeland meet Mexico's USMCA point man to get deal to finish line
    • Porsche, Apple Music partner on infotainment
      Vietnam-tied hackers said to target auto industry
      Vehicle screens go super-sized at CES as tech catches up
      All in a day's work
    • Ford, UAW reach tentative pact in U.S. with billions worth of investment
      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
    • Toronto Auto Show
  • Opinion
    • Blogs
    • autonomous-main_i.jpg
      A call for clarity on self-driving terminology
      2020 Corvette's unanswered questions
      How do global suppliers thrive in a tough world?
      GM investment means vehicle production could one day return to Oshawa
  • EVENTS, WEBINARS & AWARDS
    • 2019 Canadians To Watch
    • 2018 Auto News Canada All Stars
    • Best Dealership To Work For
    • Canada Congress
    • Webinars
    • Retail Forum: Toronto
    • Dealerships reboot for millennials
      Communication is key to keeping dealership family together
      How giving back to their communities helps dealerships succeed
      Green dealerships good for business and for hiring
    • 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. Opinion
June 24, 2019 12:00 AM

Canada needs a transition plan as it moves from assembly to r&d

John Irwin
Reporter for Automotive News Canada
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    General Motors

    GM plans to build a track on part of the site, providing a place to test the technology it develops for autonomous vehicles.

    General Motors’ plans for Oshawa Assembly are a microcosm of the larger trends at play in the Canadian auto industry. 

    GM plans to build a track on part of the site, providing a place to test the technology it develops for autonomous vehicles, connectivity and infotainment at its nearby Oshawa and Markham, Ont., technical centres. 

    It’s just the latest sign that many in the industry increasingly view the Greater Toronto Area and nearby Waterloo as an emerging Silicon Valley North, what with the abundant talent, research universities and brilliant leaders in the fields of artificial intelligence, engineering and other crucial facets. It’s no wonder that automakers and tech companies see a future in Canada when it comes to r&d. 

    But even as the tech sector booms, manufacturing continues its downslide. Oshawa Assembly, which once employed about 22,000 workers, will employ only 300 when it transitions into a parts plant for GM and other suppliers. 

    This is a better outcome than what many assumed earlier in the year — a complete closure — but the fact remains that Canada will be down to nine assembly plants come 2020. And thousands of workers at Oshawa, its suppliers and other businesses that depend on the plant will be out of jobs. 

    GM might increase the number of workers at Oshawa as it gains more business for the plant, just as southern Ontario will likely continue creating jobs for those in the tech sector. But tech facilities do not have the same jobs-multiplier effect as manufacturing. 

    Things aren’t all bleak, however. Toyota has invested heavily in its Canadian footprint, to the tune of $1.4 billion. And most remaining Canadian assembly plants, with the possible exception of Fiat Chrysler’s Brampton, Ont., factory, seem to be stable. But there’s a caveat: The North American new-vehicle market is declining. While it remains strong by historical standards, falling sales mean less vehicle production, which means fewer jobs. 

    Look, for example, at the 1,500 people who will be out of work in September after FCA cuts a shift at its minivan plant in Windsor, Ont. 

    As the market declines and as more assembly plants find themselves in danger of closing in the long term, the federal and provincial governments must put an emphasis on helping displaced autoworkers at assembly and supplier plants transition into new jobs. 

    Like Oshawa, the Canadian auto sector appears to be in a state of flux, one that will have winners and losers. 

    The feds and the Ontario government cannot afford to be reactive, offering to assist with transitions only after a company announces cuts. Instead, they must be proactive to maintain Canada’s auto-manufacturing footprint while also training and educating Canadians for a rising tech sector. 

    Recommended for You
    Digital Edition
    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 Now

    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 Now
    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

    ISSN 2475-5001 (print)
    ISSN 2475-501X (online)

    Resources
    • About us
    • Contact Us
    • Digital Edition Archive
    • Advertise with Us
    • Reprints
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    Automotive News Canada
    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
      • 2019 Canadians To Watch
      • 2018 Auto News Canada All Stars
      • Best Dealership To Work For
      • Canada Congress
      • Webinars
      • Retail Forum: Toronto
    • +MORE
      • NEWSLETTERS
      • SUBSCRIBE
      • CLASSIFIEDS
      • CONTACT US
      • DIGITAL EDITION