When the second quarter of 2010 rolls along, 1,400 workers at General Motor's Windsor transmission factory will be out of work. The plant, which currently produces four-speed gearboxes for GM, will be phased out at the turn of the decade, with no plans to retool the facility to produce any other components. GM's Canada President, Arturo Elias, made it clear in the announcement that the decision was not a "reflection on our excellent Windsor workforce," but instead is due to a lack of available, "replacement products in the relevant timeframe for this location." Fortunately or unfortunately, today's announcement of the plant's closing takes place as the General negotiates a new contract with the Canadian Auto Workers (CAW) union.[Source: Detroit News]
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Reader Comments (Page 1 of 2)
pmalik @ May 12th 2008 4:13PM
I know I know, let's strike! That will convince GM to make us part of their long term business strategy!
Soccer Mom @ May 12th 2008 4:20PM
What can you do?! The times are tough.
BB92 @ May 12th 2008 11:24PM
They are even tougher when they are getting new transmitions from Chinea.
psarhjinian @ May 12th 2008 4:32PM
Sigh...
Two points:
1. Canadian parts and labour is more expensive than the US. GM takes a hit when they pay for Canadian resources in American dollars. This isn't likely to change anytime soon.
2. It costs even more money for GM operations in the US to buy the finished products for the same reason
3. Buzz Hargrove is a dimwit. Seriously. The Ontario government can do what it can with regards to tax breaks and development, but the union really needs to make some concessions and get competitive, or the employees in places like Windsor or Oshawa will be working at Starbucks, if at all.
4. The Ontario and Federal governments--especially the Federal one--need to step in now, while the resources are still there to do so. This is tough for the Feds, as generally speaking Ontario has spurned the governing party repeatedly. They've pretty much written Ontario off.
Ontario's economy is going to look a lot like Michigan's if there's not some changes made sooner. Waiting until the economy as a whole is behind the eight ball is not wise planning.
rodan32 @ May 12th 2008 4:54PM
That was four points. But I agree with you.
psarhjinian @ May 12th 2008 9:48PM
Damn... Solidly pwned on that one.
inteller @ May 12th 2008 10:13PM
must be the exchange rate.
Andrew @ May 13th 2008 8:09AM
All good points psarhjinian. The dollar is now a huge part of this as you mentioned.
The Other Bob @ May 13th 2008 5:32PM
"Ontario's economy is going to look a lot like Michigan's if there's not some changes made sooner. Waiting until the economy as a whole is behind the eight ball is not wise planning."
Actually the replacements for these 4 speeds transmissions are being built in Michigan.
J.Crew @ May 15th 2008 8:57PM
"the other bob" - GM is actually opening a new transmission facility in St. Catherines that should have been built in Windsor:
http://www.thestar.com/Business/article/214806
This was announced last year which frustrated many in Windsor. When they announced the Lima, Ohio production we all knew Windsor was going to close.
J. Crew @ May 15th 2008 8:58PM
"the other bob" - GM is actually opening a new transmission facility in St. Catherines that should have been built in Windsor:
http://www.thestar.com/Business/article/214806
This was announced last year which frustrated many in Windsor. When they announced the Lima, Ohio production we all knew Windsor was going to close.
Lithous @ May 12th 2008 4:40PM
If I didn't actually know facts, I wouldn't believe that GM could have their newer transmissions built in the U.S. and closing non-U.S. plants that build their older technology. Because that never happens according to all the car experts posting on autoblog. Where is the "As seen on AB!" logo when you need it?
Xcountryflyer @ May 12th 2008 4:48PM
At current exchange and labor rates, I'm not surprised that GM is shifting production elsewhere.
Adam Marcello @ May 12th 2008 5:15PM
Lets just hope that if it is just shifting work they choose a nice non-union area to set up for the new stuff.
jamie @ May 12th 2008 5:28PM
Uh-huh
Buzz is that the trannys will keep on rollin'.
Remember not too long ago when GM was going to close one of its auto assembly plants in Ontario? Buzz negotiated the new Zeta platform to be positioned there instead. That's where the Camaro and other RWD GM cars are going to be built.
I wouldn't put it past Buzz to install a new 6 speed tranny line at Windsor for GM. Wait and see.
psarhjinian @ May 12th 2008 9:48PM
What other Zeta cars? The Impala is going to remain on the W platform, the G8's future is uncertain and there's no plan for a rear-drive Buick.
Hargrove was snookered, plain and simple. If Oshawa Car wasn't GM's highest-quality plant (heck, it's the third-highest-quality plant on the planet), it would have been shuttered long ago. With St. Catharines in trouble and Windsor closing, Oshawa is going to be under supply-chain pressure.
Not good.
jamie @ May 13th 2008 12:53PM
This is SOP for GM, especially when in contract negotiations. They already know which plant will produce the best results, so they announce that it is to be shuttered. The CAW takes the bait and offers concessions to keep the plant open. Buzz may be snookered again, but at least the guys and gals in Windsor will still have a job.
The declining dollar will probably force the Pontiac G8 and Sport Ute to be assembled there as well. Rumors of a RWD Pontiac G6 and possibly a G4 still abound also. The GTO could be revived in a pinch. What about Solstice? Well, that might be stretching it a bit.
Impala should remain FWD.
Buick should forge a different road as AWD.
Now Cadillac is another matter. Ricky MAY consider building the CTS and new RWD DTS in Oshawa. That may be on the drawing board there as well. We'll see. :)
Gardiner Westbound @ May 12th 2008 6:20PM
Ford pulled that stunt with a Windsor plant a few months ago. After the closure Ford said it require a $30-million taxpayer gift to get it reopened. Ford got the money!
bakka @ May 13th 2008 10:39AM
Yep. Ford gets 30mil from the gov. That is good old SOCIALISM for ya.
inteller @ May 12th 2008 10:16PM
that NAFTA, its a bitch!
sounds like the Canucks need to brush up on their espanol and drive south to meet up with their jobs.
When you drive by Hermosillo, say hi to the old American jobs for us will ya?