Oshawa, Ontario – GM Canada today confirmed that, following ongoing discussions with the CAW over the past several days, it will take action today to seek collaborative or such necessary legal means required to end the ongoing blockade of its Canadian Headquarters allowing the company to reasonably continue conducting its business in Canada. GM Canada lost some vehicle production this past Saturday as a result of other CAW actions in Oshawa.

GM says it will continue to seek all opportunities to work together with the CAW on productive approaches. This includes working together to seek additional car production in Oshawa that is aligned with consumer demand caused by new record fuel prices and vehicle market realities. GM already produces the Chevrolet Impala in Oshawa and plans to launch additional new models this year and over the coming years.

GM also reaffirms that throughout prior agreements the recent unprecedented accelerated bargaining with the CAW and in the final agreement with the CAW, it was understood and agreed by both parties that commitments with respect to Oshawa Truck were “dependent upon market demand”. It was also understood that these commitments could be impacted by the “increasingly uncertain North America truck market and regulatory environment” and that GM’s overall product mix is constantly changing as a result of factors that are beyond the scope of responsibility and control of the parties involved.

GM acknowledges that the tough decision to cease production at the truck plant in 2009 is difficult for all parties involved, especially its employees. The company has determined that it cannot continue to build the same volumes of large trucks in light of current structural shift to higher fuel prices.

The company said it will continue to seek to work together with the CAW on steps to assist impacted employees. GM Canada officials made it clear that they are willing to meet with CAW leaders to continue discussions to seek additional car production in Oshawa that is aligned with consumer demand, record fuel prices and vehicle market realities.

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