TORONTO — General Motors will turn its Oshawa, Ont., factory into an “aftermarket plant,” producing parts, but most of the 2,600 hourly workers will still lose their jobs after vehicle production ends by the end of the year.
The company plans to invest C$170 million ($126 million U.S.) to support the transition of operations at Oshawa. GM also said it will convert part of the plant property into a test track for autonomous and advanced technology vehicles.
Dias, speaking with Automotive News Canada ahead of a joint press conference between GM and Unifor on Wednesday in Toronto, said the automaker has 10-year commitments to build parts, such as quarter panels, trunks, doors and hoods at the plant. He also said the company is working with suppliers including Magna International Inc. and Martinrea International Inc. to “bring in stamping work” to Oshawa.
GM Canada CEO Travis Hester said during the news conference that the plant will focus on “parts manufacturing, sub-assembly and other miscellaneous activities for GM and other auto industry customers.”
The programs will keep the plant alive after vehicle production stops by the end of 2019, but they will only save about 300 jobs, though that number could rise as more products are identified.
“It starts off really low, but then it builds over time,” Dias said. “There will be a lot more [jobs] by the time December rolls around. It’s all a question of stages. They’re going to bring some work from overseas back. Everybody’s at it, but the problem is we need to make some sort of announcement. But it’s not complete. It’s a work in progress.”
Dias said Oshawa will provide aftermarket parts for the GMC Acadia, Chevrolet Traverse and Chevrolet Equinox.