General Motors Continues Cutting Down Jobs

Anthony Fontanelle
September 12, 2007

With the market share going down and the demand still declining, American automakers are faced with difficult decisions which are negatively affecting their employees. Ford has closed down plants already and Chrysler has been sold by its German parent. General Motors, which is still the largest automaker in the world, is not immune from the problem. Just recently, the Detroit automaker reduced a shift in its truck plant in Oshawa.

The truck plant of General Motors in Oshawa is considered as the most productive assembly facility in the Western Hemisphere. The vehicles manufactured in the said facility have won numerous awards in the past. Thus, the announcement that the third shift in the plant will be cut came as a surprise to Canadian workers. The move by the automaker was considered even more surprising because of the fact that even with General Motors' troubles, the truck plant in Oshawa is considered as one of its bright spots.

The announcement that came just recently had the Canadian manufacturing sector reeling. Although it was reported earlier this year that sales in the country is increasing especially sales of trucks. Aside from increased sales of light trucks in the country, auto parts such as tie rod Canada are also selling fast. The economy of the country is also getting better even with predictions saying that it is due for a slide.

The Toronto Star reported that in the last five years, one out five manufacturing jobs has disappeared from the Durham Region. If the trend continues, that figure will continue to rise. Along with that, the amount of wages lost will also increase. It can never be overemphasized that this development is crushing for the local economy. It is also reported that since the workforce reduction begun, more than 10,000 jobs have already disappeared - and that is in Oshawa alone.

As a whole, the Canadian auto assembly and parts sector has already 23,000 jobs cut down. This is only for the last few years. Although the shutting down of General Motors plants in Canada and in the United States is being blamed on the housing market, a huge number of workers have already been slashed even before the issue about the housing market has surfaced.

Although the Canadian auto market looks to be healthy, it is the demand in the United States which dictates the number of vehicles that automakers need to produce. The increasing price of gasoline and the increasing awareness about the threat of global warming has American auto buyers shifting away from light trucks. Considering that trend, General Motors is forced to reduce the number of large vehicles that it produces. It can be remembered that General Motors lost much last year due to the huge number of light trucks still sitting on their dealerships.

But with the automaker now focusing on the development and possible production of green cars, it is possible that it will once again re-open its closed plants. For today though, workers are being laid off and it would certainly be a long wait if General Motors indeed decides to make its fuel efficient vehicles in Canada.

Source:  Amazines.com