PHILOTOOTH: A series of cars are seen on a road after a changeover at General Motors car assembly facility in…
PHILOTOOTH: A series of cars are seen on a road after a changeover at General Motors car assembly facility in Oshawa on June 1, 2012. REUTERS / Mark Blinch
MONTREAL (Reuters) – General Motors Co. ( GM.N ]) will make a big announcement on Monday that will affect its global business, including auto production at an Ontario facility, a Canadian union said in a statement on Sunday.
Unifor, representing most car drivers in Canada, said it had been informed by GM that there would be no product assigned to the Oshawa plant after December 201
9, a development that would affect production at the factory.
The statement came after a local TV news channel said GM was planning to close all operations at Oshawa, near Toronto.
A GM spokesman refused to comment on Sunday night.
GM has cut jobs to handle car sales in North America. The company has been discussing internally in months how to deal with decreasing demand for cars, a person who has been informed about the issue has said and the question is sure to return when GM has contract negotiations next year with United Auto Workers Union.
Analysts have said that GM has too many North American plants to build long-selling sedans. GM executive director Mary Barra said in a statement to employees last month that automaker needed to reduce costs and cited negative cash flow for the first nine months of the year.
GM has offered buyouts to North American officials and has said that it could put on officials if it does not hit a cost-saving goal.
The person informed about the matter confirmed GM planned an important message about the future of the Oshawa factory but said that the automaker would notify its employees of their plans before confirming any announcements about the closure of the plant.
GM employs approximately 2,500 professionals and approximately 300 officials in the Oshawa area. The US based machine has other operations in Canada, including a facility in Ingersoll, Ontario, where it fits the Chevrolet Equinox.
Reporting by Allison Lampert; Further Reporting by David Shepherdson in Washington DC; Write by Denny Thomas; Editing Peter Cooney
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