2500 more jobs lost again

[dmlfarmer]

Unlike farmers, who increase production when oversupply results in lower prices, businesses like GM cut production, and costs as GM is doing. There is an oversupply of cars (compared to trucks and SUVs) and a number of car lines were not selling well so GM is closing those factories and shedding some brands. And as pointed out it was not just one factory in Canada but 5 more in the US and another 3 outside North America (if you include the Korean factory closure which was announced a few months ago) All of these factories were working a single shift and if they had been working at capacity, they would have produced another million cars annually for which there is little market for. Instead by closing these under utilized plants, GM is saving billions of dollars, can reallocate resources to truck and SUV plants which are profitable and now account for

Most interesting is GM stock has risen 7.9% since the closing were announced. Apparently GM stock holders approve of this Business decision.

Also needs to point out that CEO Barra also said US tariffs which have increased price of aluminum and steel resulted in higher costs of production at these plants.

Sounds like Trump is more to blame than Trudeau.

[farmaholic]

You moron I’m stating Regina airport isn’t a international airport thanks to a useless bunch of Canadians that run it. And that think Americans will pay whatever canada wants for the service. Well American companies drop canada fast and Regina learnt that the hard way.

Maybe listen instead of always criticizing you might learn something

....no name calling!

[bucket]

Unlike farmers, who increase production when oversupply results in lower prices, businesses like GM cut production, and costs as GM is doing. There is an oversupply of cars (compared to trucks and SUVs) and a number of car lines were not selling well so GM is closing those factories and shedding some brands. And as pointed out it was not just one factory in Canada but 5 more in the US and another 3 outside North America (if you include the Korean factory closure which was announced a few months ago) All of these factories were working a single shift and if they had been working at capacity, they would have produced another million cars annually for which there is little market for. Instead by closing these under utilized plants, GM is saving billions of dollars, can reallocate resources to truck and SUV plants which are profitable and now account for

Most interesting is GM stock has risen 7.9% since the closing were announced. Apparently GM stock holders approve of this Business decision.

Also needs to point out that CEO Barra also said US tariffs which have increased price of aluminum and steel resulted in higher costs of production at these plants.

Sounds like Trump is more to blame than Trudeau.

Well the shareholders were not held liable for the billions still owed to government. ....

And it might seem like their trucks are worth 80 thousand to the shareholders but they may see a decline in those sales as well....

Maybe they should get the billions in loans paid back out of shareholders dividends. ....

But you can't hurt businesses like that...

The oil industry is, as even Trudeau acknowledged on its knees, the auto industry is slowly pulling out....what next....

Oshawa made trucks from what I read....

[Robertbarlage]

I guess if there is any good to this it would be the union is getting ****ed! Screw you unifor! ****in unions.

[fjlip]

They ate the goose laying their eggs/paychecks...Grow a brain unions, business HAS to make money before YOU get paid!

[dmlfarmer]

Well the shareholders were not held liable for the billions still owed to government. ....

And it might seem like their trucks are worth 80 thousand to the shareholders but they may see a decline in those sales as well....

Maybe they should get the billions in loans paid back out of shareholders dividends. ....

But you can't hurt businesses like that...

The oil industry is, as even Trudeau acknowledged on its knees, the auto industry is slowly pulling out....what next....

Oshawa made trucks from what I read....

Oshawa only produced Chev Impala and Cadillac XTS both models which are being discontinued. For the past few months, they have been doing final assembly of GMC Sierra and Chev Silverado trucks there but not full production.


I also have to ask if Trudeau is to blame for this closure, should he have gotten credit for the new GM innovation facility which just opened in Markem and the 700 jobs GM jobs created there? Why did none of you post on this opening, praising Trudeau for these new jobs?

[seldomseen]

https://business.financialpost.com/transportation/im-worried-about-whats-going-on-in-canada-magnas-ceo-concerned-about-competitiveness

Magna is thinking of moving to the US and its all because of the crazy socialists Liberal ideas!

[Partners]

Until they close the doors, their will be lots of parts missing on the rest of the GM vehicles..
Why don't the workers offer a pay cut to keep their jobs?

[dmlfarmer]

https://business.financialpost.com/transportation/im-worried-about-whats-going-on-in-canada-magnas-ceo-concerned-about-competitiveness

Magna is thinking of moving to the US and its all because of the crazy socialists Liberal ideas!

Seldomseen, where in the article you linked to does it say Magna is thinking of moving to the US?

For those who have not followed the link, there are some things you should note from the article before listening to Seldomseen. First, the date of the article was May 10, 2018, long before what is happening now and before the Ontario election.

Second, nearly half of the article focuses on the NAFTA stalemate (at the time) which was a product of Trump's doing and Magna's CEO clearly states that all of North America car industry will be damaged if NAFTA is renegotiated (as happened) ( QUOTE "Walker also warned that significant changes to automotive provisions in NAFTA, including raising Mexican wages, could lead to a loss of jobs and shifting production outside of North America.

Canada’s Foreign Affairs Minister Chrystia Freeland echoed Walker’s sentiments a day earlier, voicing concerns that some of the rules being considered in the NAFTA negotiations could potentially damage the auto industry.

The latest U.S. proposal demands that 75 per cent of every car use North American parts, that 70 per cent of all steel be North American, and that 40 per cent of every car be built by workers making $16 per hour.

Walker said significantly raising wages in Mexico could end up pushing investment outside of NAFTA and into China.

“If we drove labour for everything in Mexico up, even doubled it, that means you’re not competitive anymore and a lot of products, it all goes back to China,” he said.

“It would be very disruptive to everybody that’s doing operations down there, and we would lose the jobs out of (the NAFTA region) and drive the price of cars up a lot, which means consumers pay more.”" END QUOTE.

Which leads one to wonder if the GM closures are actually the result of USMCA!

[seldomseen]

Speaking at an annual shareholder meeting, Magna International Inc.’s chief executive Don Walker said initiatives such as Ontario’s cap and trade program, as well as rising electricity costs and new labour legislation are making it increasingly difficult to remain competitive against other jurisdictions that don’t fa
ce “all these burdens.”

Second paragraph

[seldomseen]

Planning an emergency debate in the House of Commons tonight to discuss the loss of jobs!


Where was the all the outrage when thousands of oil field jobs are lost in the west?

[SASKFARMER3]

Ok ok ok I’ll quit with the pissed off name calling.

My stress level is back to normal as my son is now out of surgery and doing great. If you feel sick go see a Dr. Shit can go bad fast real fast.

Now back to Trudeau yea congratulate him on getting 700 jobs but I think the real reason is simple piss off the most powerful man in the world and he does a deal with Mexico before you. The elephant can stomp out the mouse teal quick.

It’s happening and some wonder why.

Canada isn’t buisiness friendly, we want a socialist state where the government wipes our ass.

Well the money has to come from some where and once business is gone or moved back to the USA or Mexico and unemployment numbers are through the roof. Finally people will realize Trudeau and company and liberal socialist ideas are bad.