The housing crisis is being blamed for decreased truck sales. In light of the credit crunch, fewer loans are being disbursed and fewer construction workerss are actually at work. With GMC Sierra and Chevy Silverado sales taking the hit, GM has decided to cut a shift at its Oshawa, ON plant in Canada. In a factory that employs 3,000 people, that's a direct loss of 1,000. The indirect job losses won't be known for a while, as GM's suppliers and the businesses around the plant make cuts of their own. It represents the first time the plant has run just two shifts since the early nineties.
The move is more regrettable news for the CAW following Ford's closing its Windsor plant and Chrysler's plan to shed 2,000 union jobs in Ontario. With 85% of the Oshawa plant's output coming south of the border, the 7% drop in sales for the two trucks has made them especially susceptible. The potential light on the horizon is that GM plans to build a state-of-the-art factory next to the Oshawa truck plant to build 500,000 cars per year -- but only after closing one of the two car plants that are currently there. It's quite a fall for the region; GM's Oshawa Plant No. 1 was the most efficient plant in North America in 2004.
Thanks for the tip, Peter!
[Source: Report on Business via Auto North]