General Motors is expected to announce on Monday the closure of a factory in the Canadian city of Oshawa, putting almost 3,000 jobs at risk, Canadian channel CTV reported.
The decision is linked to the American automaker’s plans for a comprehensive global restructuring, the channel reported Sunday, citing multiple anonymous sources.
The plant in Oshawa, about 60 kilometres northeast of Toronto, was built in 1953, according to the manufacturer’s website.
It currently employs approximately 2,800 people and assembles Chevrolet and GMC pickups as well as Chevrolet Impala and Cadillac XTS sedans.
“I’m hoping it’s just a rumor,” Oshawa Mayor John Henry said. “Until we hear something, we don’t know.”
GM has three other sites in the province of Ontario. It is unclear whether they will also be affected.
Last month, the company announced plans to reduce its workforce across North America to save money through voluntary redundancies, and did not rule out the possibility of layoffs.
The plans stand to affect 50,000 employees across the US, Canada and Mexico. About 18,000 of them, or 36 per cent of the workforce, are eligible for voluntary redundancy.
GM’s earnings for the quarter ending September 30 were $2.5 billion, eclipsing expectations in the latest quarter, despite the impact of tariffs and slipping sales volume.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.