General Motors will close a Canadian plant, leaving 2,500 people jobless. The public anticipates further explanation from the company Monday.
This is just the beginning of the motor giant’s downscaling process in lieu of expected economic decline, the Trump administration’s trade agreements, and possible taxation on automobile imports.
The Detroit native auto manufacturer offered
A credible source close to company officials confirmed the Monday closure of the Oshawa, Canada factory late Sunday. The factory, which opened in 1953, is used to make the Cadillac XTS and Chevrolet Impala sedans as well as the Chevrolet Silverado and GMC Sierra trucks.
At this time, experts say GM factories are making cars that sell slowly. They can’t afford all their overhead costs without making some cutbacks. It’s always a tough decision.
Also, the political climate is heavily influencing the business decisions GM makes.
Some of the cars produced by GM are also manufactured in Mexico. The Detroit motor giants are unsure if Trump will stick to his threats to impose 25% tariffs on vehicles imported from Canada and Mexico.
But moving that car, the Chevrolet Cruze, south of the border brings the risk of provoking a backlash from President Donald Trump. And GM also isn’t sure whether he’ll make good on threats to impose 25 percent tariffs on vehicles imported from Canada and Mexico.
There is no product allocated to the plant past December 2019.
Update: 11:13 am e.t.
GM has made an announcement that it plans to halt production next year in four other locations in addition to Oshawa, Ontario.
Lordstown, Ohio, that makes the Chevrolet Cruze compact; the Detroit-Hamtramck plant, where the Chevrolet Volt, Buick LaCrosse and Cadillac CT6 are produced; and two transmission plants are in Baltimore and in Warren, Michigan will also be impacted.