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kwlafayette





Joined: 03 Sep 2006
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Location: Saskatoon Saskatchewan

PostPosted: Thu Jan 24, 2008 1:52 pm    Post subject: GM takes manufacturing south. Reply with quote

http://www.globeinvestor.com/s.....4/GIStory/

Quote:
General Motors Corp. has scrapped plans to build some rear-wheel-drive cars at its giant operations in Oshawa, Ont., a move that could threaten the long-term future of the largest vehicle assembly plant in Canada and thousands of jobs.

The auto maker has scuttled the rear-wheel-drive version of the Chevrolet Impala, which was scheduled to represent half the output of a leading-edge flexible assembly plant now under construction in Oshawa, industry sources said.

Production of rear-wheel-drive Cadillac and Buick sedans originally slated for Oshawa will be shifted instead to Lansing, Mich., the sources added.

GM will begin producing the reborn Chevrolet Camaro as a rear-wheel-drive muscle car in Oshawa later this year.


I wonder, could it be possible, that Canada's new misguided rules about vehicle rebates and emissions standards have anything to do with this?
FF_Canuck





Joined: 02 Sep 2006
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Location: Southern Alberta

PostPosted: Thu Jan 24, 2008 10:09 pm    Post subject: Reply with quote

Probably that, and the fact that when our dollar is at or near parity, our workers are far more expensive than their American counterparts (or so I've been told).
Mac





Joined: 02 Sep 2006
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Location: John Baird's riding...

PostPosted: Fri Jan 25, 2008 1:45 am    Post subject: Reply with quote

FF_Canuck wrote:
Probably that, and the fact that when our dollar is at or near parity, our workers are far more expensive than their American counterparts (or so I've been told).

The latter is a part of it but a bigger part is how the entire market is changing. Gas guzzlers are no longer "cool", completely aside from governments and enviro-activists, because of the price of gas.

GM Oshawa won't go out of business. They'll retool for something smaller and more energy efficient to compete with the Asian imports. GM Oshawa is consistently GM's highest quality producer. While it's possible to make things cheaper elsewhere, the marketplace is demanding quality and GM's other plants are still trying to catch up. The sole exception: the Corvette & XLR plant in Bowling Green, Kentucky but that's because they're producing a low production of high $ cars.

Over the past five years, GM pumped several tons of money into their facilities. They've installed their own highway overpass and railroad spur! They completely replaced their painting facilities. GM is in Oshawa for the long haul...

-Mac
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GM takes manufacturing south.

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