GM Pulling Out of Canada?

[Dragon]

the CAW is worried they might

http://business.theglobeandmail.com/servle...y/Business/home

TORONTO — Leaders of the Canadian Auto Workers union are using increasingly conciliatory language as they await word from General Motors on the fate of the company's Canadian operations.

CAW Local 222 president Chris Buckley says he's concerned that the company may pull out of Canada entirely, which he says would affect about 12,000 workers and hundreds of thousands of indirect jobs.

Mr. Buckley says he's concerned GM may escalate its Canadian cutbacks after the company's board of directors wrap up a meeting in Detroit today.

He also says it doesn't bode well that estimated U.S. auto sales figures released Monday showed a 39 per cent drop for GM, making it 14 consecutive months that sales are down.

Mr. Buckley says he wants to speak with GM officials as soon as possible to pass on that the union is willing to be part of the solution.

The union is continuing to press the federal government to supply GM with guaranteed loans, as long as they're conditional on the company maintaining operations in Canada.

“As a union it makes no sense to ignore this crisis, we understand this is a terrible situation and if we choose to ignore this crisis there's a possibility General Motors would pull out of Canada,” Mr. Buckley said in an interview.

“We're not about to give them a reason to pull out of Canada.”

While Buckley was once hard-nosed and talked tough in seeking demands from the Detroit Three auto makers, he has been forced to soften his stance in light of the current economic climate.

Federal Industry Minister Tony Clement has also said auto makers should be reducing labour costs to make the Canadian auto industry more competitive.

“We haven't closed the door on anything just yet,” Mr. Buckley said of the concessions the union is willing to make.

The union is now waiting for the phone to ring so they can advance talks with GM.

“At this point, I can tell you if we choose to ignore this crisis, it will put us in a very difficult position as far as (GM) having a Canadian presence,” he said.

“I would suspect after their board meeting they'll have their restructuring plan put in place and hopefully Canada's a part of it.”

Edited February 3, 2009 by Dragon

[toesuf94]

So GM would close and move Oshawa's production where? Spring Hill? Detroit? Wisconsin?

This would be an interesting development, but I think another delay in the production of the Camaro would kill the car. Maybe I am wrong, but I am sensing a lot of anger at even the slightest delays with the Camaro faithful.

Does anyone here think that closing Canadian operations and moving them stateside would be a smart move? (I am not biased, just want to see where you guys stand)

[FAPTurbo]

Does anyone here think that closing Canadian operations and moving them stateside would be a smart move? (I am not biased, just want to see where you guys stand)

No, because it'll help destroy what's left of the battered Ontario/Quebec manufacturing base, and economy, which will in turn impact American States like Vermont who do almost 90% of their trade with Canada.

[saturnd00d]

I personally would think that it's a dumb move. Amongst there most efficient plants, are the ones in Canada. Take those out of the operations of GM, and you have far less awards and credentials to be used for marketing purposes, amongst other important things such as job losses for canadian workers and auto part suppliers, etc.

Canada has huge market demands for small cars and lightweight trucks, moreso than anything else.

[daves87rs]

Not going to happen.

IF GM wants money from the canadian government.......

[deftonesfan867]

I'd reckon more that the CAW will go bye bye rather than GM Canada.

[NOS2006]

Pulling out is only like 90% effective.

[deftonesfan867]

It's always worked for me.....so far.

[Satty]

Pulling out is only like 90% effective.

You're always better off pulling out too early instead of too late.

[Oracle of Delphi]

Not going to happen.

IF GM wants money from the canadian government.......

Who said anything about the USA? GM has already refused the Canadian loan money, by the way how many CAW members speak Spanish in Canada? Adios amigos ...

[FAPTurbo]

If GM gets out of Canada, which is highly unlikely anyways, it'd just be one more reason for Canadians to buy from other brands like Toyota.

[daves87rs]

Who said anything about the USA? GM has already refused the Canadian loan money, by the way how many CAW members speak Spanish in Canada? Adios amigos ...

USA? What? I'm talking about canada here....

Even if they close that plant (or plants), the outrage would be so high that GM would have to build something there anyways.......

And Mexico is not the answer either.

[daves87rs]

If GM gets out of Canada, which is highly unlikely anyways, it'd just be one more reason for Canadians to buy from other brands like Toyota.

You got it.

Why would they want the bad press anyways?

[Intrepidation]

All that will be accomplished by pulling out is giving the companies left lots of room to gain sales and market share.

[Z-06]

I see a game of chess being played.

[Cremazie]

^ Well if GM pulled out of Canada I for one WOULD NOT buy a GM ever again, considering the amount of grants the Federal government has given GM in the past to keep their plants competitive. If its "Adios" from GM then its "F*!k off" from me.

[the_yellow_dart]

^ Well if GM pulled out of Canada I for one WOULD NOT buy a GM ever again, considering the amount of grants the Federal government has given GM in the past to keep their plants competitive. If its "Adios" from GM then its "F*!k off" from me.

+1

And since I have no faith in Ford or Chrysler - I would never buy American again if this happened.

[Drew Dowdell]

This is just F.U.D. to get the CAW to cave.

[ShadowDog]

I see a game of chess being played.

Threaten the CAW by yanking all their jobs, then say, "Oh, alright, we'll stay, but you have to take a serious cut." All this for heavy-handed bargaining perhaps?