GM to build new Cadillac at Oshawa plant: report
General Motors plans to build its Chevrolet Impala or a replacement vehicle, as well as a new Cadillac sedan, at its Oshawa facility, according to an industry memo, moves that could create up to 1,000 jobs in Ontario's beleaguered automotive industry. GM will build a new Impala model or a replacement vehicle beginning in February 2013 at its Oshawa plant, according to a memo sent out Tuesday by The Automotive Parts Manufacturers' Association.
The memo also said that GM will begin building its new Cadillac XTS sedan in Oshawa in January 2012.
GM is expected to unveil the XTS next week at the North American International Auto Show in Detroit.
Officials from GM have yet to confirm the revelations contained in the APMA's note.
When asked how the APMA got hold of such inside information, Steve Rodgers, the association's new president, would only say that the association's members often receive such information and it's his job to keep other members informed.
"Our take on it was more, 'here's something that you as suppliers need to be aware of,'" Rodgers told CTV.ca in a telephone interview Tuesday morning. "But we do get knowledge from our suppliers and again, as we become aware of this intelligence we are working hard to try and keep our members in the loop and keep them competitive."
If confirmed by GM, the news follows other recent announcements that suggest Ontario's ailing auto and manufacturing sectors may be on the rebound.
Recent job announcements include:
GM said in November that about 600 laid-off workers would be recalled to the Oshawa plant in 2011 to begin production of the new Buick Regal. The plant has also been running overtime shifts to produce the Chevrolet Camaro, and in 2011 will begin producing the Camaro Convertible.
The CAMI plant in Ingersoll, Ont., had to add a third shift plus overtime in the fall to meet demand for the Chevrolet Equinox and GMC Terrain.
Toyota said in December that it plans to hire 800 more people at its plant in Woodstock, Ont., in order to ramp up production of its RAV4 sport utility vehicle.
Until GM makes a formal announcement about its plans for the Impala and the XTS, it is unclear exactly how many new jobs may be created.
CAW representative Keith Osborne told the Toronto Star that an extra shift would likely have to be added at the plant, which could create between 750 and 1,000 jobs.
But CAW president Ken Lewenza said Wednesday he hasn't heard directly from GM about its plans for the Impala and the XTS.
However, GM must maintain 16 per cent of North American manufacturing in Canada as a condition of government bailout funds, which could require more products to be assembled at the Oshawa plant, Lewenza said.
As well, a ramp up in production at the Oshawa facility is part of the collective agreement between the company and the union, he said.
"The objective of the union is to fully facilitate that plan, and the only way you can do it is by getting (new) products," Lewenza told CTV News Channel. "So we have letters of agreement in place to add products to that plant. So that's in place and all we need to do is get the work done."
GM denies production levels to decrease
The APMA's memo also speculated that, despite the addition of new car models to the Oshawa plant, GM could reduce overall production at its Canadian facilities.
According to the memo, Canadian production could fall below 400,000 units annually, which is down from a previous target of 500,000.
On Wednesday, GM called those figures inaccurate and said it anticipates Canadian production volume to increase in the future.
The company said 2009 production in Canada was about 400,000 units -- 250,000 in Oshawa and 150,000 at the CAMI plant.
"Going forward, we will fully comply with our commitment to the Ontario and federal governments that we will maintain 16 per cent of GM's North American vehicle assembly capacity in Canada," the company said in a statement.
The production targets come on the heels of new auto sales figures, which showed that four of the five largest automakers experienced dramatic drops in sales in Canada in 2009.
GM suffered the biggest decline, as sales plummeted 29.1 per cent. However, the company remained in top spot for market share, selling 17.2 per cent of cars bought in Canada last year. Ford was second in market share at 15.4 per cent, while Toyota was third with 13 per cent, Chrysler fourth at 11.1 per cent and Honda fifth with 8.4 per cent.
Source: GM to build new Cadillac at Oshawa plant: report
The memo also said that GM will begin building its new Cadillac XTS sedan in Oshawa in January 2012.
GM is expected to unveil the XTS next week at the North American International Auto Show in Detroit.
Officials from GM have yet to confirm the revelations contained in the APMA's note.
When asked how the APMA got hold of such inside information, Steve Rodgers, the association's new president, would only say that the association's members often receive such information and it's his job to keep other members informed.
"Our take on it was more, 'here's something that you as suppliers need to be aware of,'" Rodgers told CTV.ca in a telephone interview Tuesday morning. "But we do get knowledge from our suppliers and again, as we become aware of this intelligence we are working hard to try and keep our members in the loop and keep them competitive."
If confirmed by GM, the news follows other recent announcements that suggest Ontario's ailing auto and manufacturing sectors may be on the rebound.
Recent job announcements include:
GM said in November that about 600 laid-off workers would be recalled to the Oshawa plant in 2011 to begin production of the new Buick Regal. The plant has also been running overtime shifts to produce the Chevrolet Camaro, and in 2011 will begin producing the Camaro Convertible.
The CAMI plant in Ingersoll, Ont., had to add a third shift plus overtime in the fall to meet demand for the Chevrolet Equinox and GMC Terrain.
Toyota said in December that it plans to hire 800 more people at its plant in Woodstock, Ont., in order to ramp up production of its RAV4 sport utility vehicle.
Until GM makes a formal announcement about its plans for the Impala and the XTS, it is unclear exactly how many new jobs may be created.
CAW representative Keith Osborne told the Toronto Star that an extra shift would likely have to be added at the plant, which could create between 750 and 1,000 jobs.
But CAW president Ken Lewenza said Wednesday he hasn't heard directly from GM about its plans for the Impala and the XTS.
However, GM must maintain 16 per cent of North American manufacturing in Canada as a condition of government bailout funds, which could require more products to be assembled at the Oshawa plant, Lewenza said.
As well, a ramp up in production at the Oshawa facility is part of the collective agreement between the company and the union, he said.
"The objective of the union is to fully facilitate that plan, and the only way you can do it is by getting (new) products," Lewenza told CTV News Channel. "So we have letters of agreement in place to add products to that plant. So that's in place and all we need to do is get the work done."
GM denies production levels to decrease
The APMA's memo also speculated that, despite the addition of new car models to the Oshawa plant, GM could reduce overall production at its Canadian facilities.
According to the memo, Canadian production could fall below 400,000 units annually, which is down from a previous target of 500,000.
On Wednesday, GM called those figures inaccurate and said it anticipates Canadian production volume to increase in the future.
The company said 2009 production in Canada was about 400,000 units -- 250,000 in Oshawa and 150,000 at the CAMI plant.
"Going forward, we will fully comply with our commitment to the Ontario and federal governments that we will maintain 16 per cent of GM's North American vehicle assembly capacity in Canada," the company said in a statement.
The production targets come on the heels of new auto sales figures, which showed that four of the five largest automakers experienced dramatic drops in sales in Canada in 2009.
GM suffered the biggest decline, as sales plummeted 29.1 per cent. However, the company remained in top spot for market share, selling 17.2 per cent of cars bought in Canada last year. Ford was second in market share at 15.4 per cent, while Toyota was third with 13 per cent, Chrysler fourth at 11.1 per cent and Honda fifth with 8.4 per cent.
Source: GM to build new Cadillac at Oshawa plant: report
