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And the Canadian automobile industry slips that much more.

The final vehicle rolled off the assembly line Thursday at the GM truck plant in Oshawa, marking the end of 44 years of production and the elimination of 2,600 jobs.

The closure is part of company-wide cuts, with General Motors Canada planning to reduce its workforce by more than half by 2014.

After 45 years with GM — the majority of that time at the truck plant — Bob Nesbitt is retiring Thursday, and hopes he doesn't see the end of General Motors.

He noted that the company and the Canadian Auto Workers are in negotiations on a labour deal that will include concessions that must match an earlier agreement between Chrysler and the union.

"The company's holding the gun to the CAW's head and they either match it or they're gone, Nesbitt said.

"It's as simple as that."

There is some positive news for the company and its workers, as GM plans to launch three of six new products at its Oshawa car plant.


Various writers at The Globe and Mail go on about the very unfortunate long-term trends.

Some time this morning, Bob Nesbitt, 67, will drive a black GMC Sierra crew cab off the assembly line at the General Motors of Canada Ltd.'s Oshawa Truck Plant. The final pickup truck rolling out of the plant will mark not only the end of an era in the city where GM Canada was born, but also the end of GM's decades-long run as the largest auto manufacturer in the country.

The Oshawa plant's closing is a key factor in the drop of GM Canada's vehicle production, taking it to considerably less than 17- to 20-per-cent level of overall General Motors production in North America - the threshold that Ottawa and Ontario have insisted GM Canada must meet in return for loans of $6-billion (U.S.) or more.

The plant closing also means the elimination of 2,600 jobs, which when added to next year's shutdown of a transmission plant that employs 1,500 people in Windsor will push the company's head count well below 16,000.

"I've seen this before but that was always model change," said Mr. Nesbitt, who has worked at GM in Oshawa since 1964 and in the truck plant since 1971. "But that truck I take off [today], there won't be another one behind it." He has one of the plum jobs of the operation. For 20 years, he has been driving finished vehicles off the assembly line and to a holding area where they wait for delivery.

[. . .]

From 2004 through 2007, GM Canada cranked out more than 20 per cent of all the vehicles the auto maker produced in North America. In 2008, that fell to 17 per cent and is forecast to drop again this year to 14 per cent, says an analysis done by consulting firm AutomotiveCompass LLC.

"We see no way Canada can get to 20 per cent," said AutomotiveCompass president Bill Pochiluk. "We don't see them even reaching 15 per cent."

The forecast calls into question the federal and Ontario governments' commitment to lend GM Canada up to 20 per cent of the amount the U.S. government provides to its parent company. The most recent GM request is for about $30-billion in loans from Washington.

The federal and Ontario governments have argued since the restructuring talks first began that Canada must retain its share of GM's North American auto production in return for any loans. They have used the 20-per-cent threshold, saying Canada's share of the bailout would be proportional to GM's production here, and have little appetite for lending money that exceeds that level.
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Grand. Chrysler Canada looks like it may yet collapse, and why? Blame the workers, it seems.

Senior executives of Chrysler LLC took the extraordinary step Friday of sending a letter to employees urging them to support the company “at a crossroads” in its history by agreeing to major reductions in benefits.

“Let me be clear, our negotiations are about saving Chrysler Canada,” chairman Robert Nardelli and president Tom LaSorda said in the letter to employees, ahead of a resumption in negotiations on Monday.

“Without labour concessions Chrysler Canada's manufacturing operations will not survive long-term,” the letter said.

The letter caps a week of growing public pressure on the Canadian Auto Workers union to agree to $19 worth of cuts in benefits to help the auto maker meet a federal government requirement that it slash its labour costs to $57 an hour to match those of Toyota Motor Manufacturing Canada Inc.

[. . .]

The Chrysler letter comes on top of comments by Fiat SpA chief executive officer Sergio Marchionne that his company will walk away from a deal to save the no. 3 Detroit auto maker if the CAW and the United Auto Workers don't agree to more concessions.


The unions don't seem very interested in this.

Over a quarter century of bargaining with Chrysler LLC, the Canadian Auto Workers union has won a pack of benefits and special compensation for car factory employees the average industrial worker in Canada might only dream of -- reimbursement of a portion of out-of-province health care bills, child care subsidies, even partial payments of lawyer fees.

Now, the union’s leaders face a stark choice: Give up many of those perks they won through legitimate bargaining and risk losing jobs anyway with an automaker struggling to sell cars. Or hold hard to those gains and risk contributing to Chrysler’s demise.

In a statement released Friday afternoon, CAW President Ken Lewenza denounced the federal government and Chrysler for making "painful" demands on his members based on misleading financial information. And he suggested the union is prepared to let Chrysler fall into creditor protection, from which it might not recover.

"We will work to defend the interests of Canadian autoworkers," Mr. Lewenza said, arguing his union has a track record of making Canadian auto plants competitive. "If Chrysler or any other company goes into bankruptcy protection (an increasingly likely prospect, given the stalemate with bondholders in the U.S.), it will not be because of us."

[. . .]

n his statement, Mr. Lewenza called Chrysler’s letter "offensive" and accused the automaker of wanting to inflict long-term damage on the credibility and influence of the CAW, Canada’s largest private sector union.

"The past week has seen an unprecedented and outrageous series of attacks on Canadian autoworkers and their union. One after another, business executives and political leaders, working clearly in tandem, have lined up to denounce the CAW’s role in the auto restructuring process, and to demand that we accept up to $19 per hour in concessions or else face massive job losses and economic dislocation," Mr. Lewenza said.


Never mind the existence of European and Japanese car companies with superior efficiencies, within and without North America. With BRIC countries coming up with inexpensive vehicles like the Tata Nano, any automotive industry is going to have to innovate radically in order to survive. If Chrysler doesn't, well, creative destruction always works, with Ontario coming off the poorer, but what can be done.

I wonder: Toronto's peripheral communities, places like Oshawa and Ajax and Oakville, depend heavily on the automotive industry. If it self-destructs and these communities end up collapsing economically, might Toronto yet come to resemble the European urban pattern of a prosperous core and an impoverished periphery?
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