General Motors files Canadian restructuring plan, will build hybrid car
Later in 2011, that same flex line is scheduled to add a new short wheelbase mid-sized sedan followed by a long wheelbase model at the beginning of 2013. There has been no indication of which brand will get this car or what the model designation will be. A few months after launch a hybrid variant of that car will be launched, the first hybrid car produced in Canada. The short wheelbase mid-size model is likely to be the new Buick Regal, a re-grilled and badged version of the Opel Insignia that was recently unveiled in China. Since Buick has been announced as one of the core brands that GM will focus on in North America, the Regal is a likely choice. As for the hybrid, this will probably be an application of GM's next generation mild hybrid that is expected to go into production in 2010. The press release is after the jump and the full plan can be found here.
[Source: General Motors]
GM Canada Delivers Plan for a "Leaner and Greener" Sustainable Company
OSHAWA, ONTARIO (Friday, February 20, 2009) - GM Canada today delivered an achievable, transformative Restructuring Plan to the Canadian and Ontario Governments and asked for their support to complete the Plan. Despite further North American market deterioration, the Restructuring Plan will achieve long-term viability and enable GM Canada to repay Canadian taxpayers.
The Restructuring Plan has three key components:
- Implement further "self help" cost reduction actions and adopt a new, beneficial "Contract Manufacturer" business model
- Obtain the CAW's agreement to achieve legacy cost reductions and align active worker wage and benefit levels to benchmark levels
- Complete Canadian and Ontario Government Support Agreements for sufficient financing to sustain operations and restructure GM Canada's balance sheet to address unsustainable legacy costs
Restructuring Plan Highlights:
- Maintains GM Canada's share of Canada / US production which is expected to range between 17% and 20% between 2009 and 2014. GM Canada remains one of Canada's largest automobile manufacturers
- Embraces the Federal and Ontario Governments' Principles for proportional production / proportional support vis-a-vis GM in the US
- Requires Agreements with the Canadian and Ontario Governments and the CAW to be completed in March 2009
- Enables the launch of five new vehicles in Oshawa and Ingersoll including new hybrid vehicle production, new flexible transmission production in St. Catharines and significant advanced environmental R&D for next generation electric car systems, with suppliers and universities in Canada
- Adopts more conservative market assumptions
- Retains GM Canada customers, dealer network and new vehicle line-up as the company's top strength and priority
- Contemplates no further GM Canada plant closures at this time, reflecting restructuring actions already announced
- Enables GM Canada to remain Canada's top selling automaker and offer more 2009 hybrid models than any competitor
- Includes shared sacrifices such as a 10% reduction in executive salaries and reduced benefits and pay for salaried workers
- Secures pensions for GM Canada retirees and would establish a "VEBA-like" structure for health care benefits
- Fully consistent with GM's loan conditions with the US Department of Treasury and GM's Viability Plan as submitted to the US Treasury on February 17, 2009
- Meets viability requirements by establishing GM Canada as a sustainable, stand-alone enterprise.
To view the complete Restructuring Plan visit www.gm.ca/ourcompany.
The GMCL Restructuring Plan should be read together with GM's Viability Plan submitted to US Treasury on February 17, 2009. GMCL has conducted extensive due diligence and shared comprehensive financial and competitive information with the Canadian and Ontario governments under appropriate non-disclosure agreements.
General Motors of Canada (GMCL) is headquartered in Oshawa Ontario and employs 12,000 people nationwide. GM of Canada manufactures vehicles, vehicle powertrains, and markets the full range of General Motors vehicles and related services through approximately 700 dealerships and retailers across Canada.
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