Oshawa, Ontario – A comprehensive restructuring plan by General Motors of Canada has been approved by the Canadian and Ontario governments. The agreements reached with key stakeholders will enable the company to complete its restructuring efforts without court supervision, and the bankruptcy filing in the U.S. is not expected to affect GM Canada’s operations.
“GM Canada’s restructuring has been challenging and has required sacrifices by all of our stakeholders, including our employees, retirees, the CAW, our dealers and others,” said Arturo Elias, president of GM Canada. “We are confident that these sacrifices will lead to positive results. We appreciate the support of the governments of Canada and Ontario that will enable us to complete our restructuring and allow for a more competitive, stronger new GM Canada. Our customers can confidently continue to purchase new vehicles and obtain service and take full advantage of GM’s leading warranty coverage throughout this process. The new GM Canada will be even more focused on our customers.”
Consistent with the principle of proportional support for proportional production, the governments of Canada and Ontario will invest $10.6 billion in General Motors, and will receive a significant equity position in the new GM. The funding will also secure the following benefits for Canada:
– The launch of five new vehicles, including new hybrid vehicle production, at GM Canada assembly plants in Oshawa and Ingersoll, Ontario.
– The introduction of flexible transmission production with the manufacturing launch of a six-speed front-wheel drive transmission at GM’s facility in St. Catharines, Ontario. Ongoing significant production of V6 and V8 engines will be maintained at St. Catharines Powertrain.
– General Motors of Canada plans to make substantial capital investments over the next seven years in Canadian facilities and contemplates no further GM Canada plant closures at this time.
– With the recently-concluded agreement with the Canadian Auto Workers Union (CAW), GM Canada’s labour costs will be competitive with Toyota Canada.
– GM plans to invest almost $1 billion over the next seven years in green research, development and innovation focusing on energy diversification, fuel economy improvements and vehicle electrification through its engineering centre based in Oshawa, Ontario. Canadian suppliers and universities will be critical partners.
– Secures pensions for GM Canada retirees by improving funding levels over time in the salaried and hourly pension plans, and establishes a health care trust for hourly retiree health care benefits.
– The customers’ needs will be better served through GM Canada’s consolidated dealer network.
GM Canada said that it does not expect its operations to be affected by the U.S. filing, and that warranties and other service commitments such as OnStar, XM Radio and customer financing operations will remain in full effect; employees will continue to report to work as scheduled, with wages and benefits continuing without interruption; suppliers will continue to be paid for the delivery of products and services; and that dealers will have access to financing options, parts and warranty coverage throughout the restructuring plans.