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A GM assembly plant in Canada, a GM company that will export mainly to the United States will be reduced to three shifts due to the trade war.
The automaker said it is repositioning its factory in Oshawa, Ontario to build more trucks for the Canadian market. The factory is the only GM facility in the country that is still producing consumer vehicles. Another GM factory in Ontario made electric vans, but they were left idle for several months.
The Oshawa factory produces Chevrolet Silverado pickup trucks. General Motors recently said it added 250 new jobs to boost production in Fort Wayne, Indiana, where the company also made Silverado.
U.S. President Donald Trump imposed 25% tariffs on foreign-made cars in early April, despite some changes made by the government to mitigate the blow to auto companies. GM cut its full-year profit outlook due to up to $5 billion in auto tariffs on Thursday, the biggest financial effect of any company moving away from the trade war.
“I express my deepest sympathy for them and their families,” Canadian Prime Minister Mark Carney told Oshawa Workers on Friday, stressing that the country's gains from mutual tariffs will be used to help affected workers.
Canada allows automakers to continue importing a certain number of U.S.-assembled cars and trucks as long as they keep the cars in the country to make vehicles. Carney said the companies must “and have to “have a true partnership” to sustain jobs and investments in Canada.” “If not, these companies will have consequences.”
The union representing the 3,000 workers at the General Manager's factory criticized shift cuts. Unifor state President Lana Payne called the decision “reckless” and said it would ripple across the entire network of auto suppliers.
“GM needs to reverse this short-sighted move before causing more damage,” she said in a statement. The union estimates that if GM plans, it could affect about 700 jobs.
Ontario Prime Minister Doug Ford said in a social media post that the province “will continue to do everything possible to provide a strong future for facilities and their workers.”
Unifor said GM must meet with the union to discuss options to mitigate job losses. The union also plans to ask if a plant in St. Catherines, Ontario will be subject to engines at the Oshawa plant, which will be affected by Friday's decision.
(From paragraph 5, PM Carney's comments and the number of workers affected.)
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