General Motors’ Oshawa plant to close

Thousands of employees at the General Motors plant in Oshawa were hit with devastating news Monday when the company confirmed the plant will close in 2019.

Rumours swirled online late Sunday and GM confirmed them Monday, saying there would be no product allocated to the plant past 2019. Three other plants in Detroit and one in Ohio will also be shuttered as part of a global restructuring aimed at focusing on lower-emission vehicles.

More than 2,800 workers at GM’s Oshawa plant will be affected and 15,000 others — suppliers, businesses, restaurants and other manufacturers — will also feel the pinch across Southern Ontario.

“GM workers have been part of the heart and soul of Oshawa for generations – and we’ll do everything we can to help the families affected by this news get back on their feet. Yesterday, I spoke with GM’s Mary Barra to express my deep disappointment in the closure,” Primer Minister Justin Trudeau Tweeted.

GM workers have been part of the heart and soul of Oshawa for generations – and we’ll do everything we can to help the families affected by this news get back on their feet. Yesterday, I spoke with @GM’s Mary Barra to express my deep disappointment in the closure.

— Justin Trudeau (@JustinTrudeau) November 26, 2018

The federal government gave GM $10.8 billion in 2009 with assurances the company would not reduce manufacturing operations for six years.

Last month, GM offered buyouts to almost 18,000 salaried employees in North America. The announcement was issued on the same day that GM announced a $2.5 billion profit.

By closing the plant, the company will reduce its structural costs by $6 billion per year by the end of 2020.

According to the GM, the company is expected to record pre-tax charges of $3 billion to $3.8 billion, including up to $1.8 billion of non-cash accelerated asset write-downs and pension charges.  Almost $2 billion will be saved in employee-related and other cash-based expenses.

GM production in Oshawa began in 1953. In the 1980s, the plant employed 23,000 workers.