GM hires while Toyota fires?

Molly Wider
April 15, 2010

Molly Wider
http://bhmfinancial.com

GM announced it's re-hiring more than 700 laid off workers in Ontario, bouncing back from the worst crisis in its history. All this right around the same time Toyota is slapped with a record $16.4 million US fine. GM is responding to growing consumer demand for their Chevrolet Equinox and GMC Terrain, both popular crossover utility vehicles.

GM had to shut down most of its North American operations last year due to low consumer demand and the near-collapse of its parent company. GM will be using their excess capacity at Oshawa, adding a third shift in October, which will see about 600 employees recalled with an additional 110 laid off workers at CAMI being recalled. GM is also expecting to add another 70 jobs by August, which will be the first time they have added new jobs in Canada since 2002. GM is hoping to meet the high US demand for their Equinox. Their new production strategy should result in an additional 60,000 to 75,000 units a year.

The recent recession forced GM to scale back production to their core brands of Chevrolet, Buick, GMC and Cadillac. The company has decided to wind down their additional options such as Pontiac, Saturn, Saab and Hummer. The outlook of the company began to improve in late 2009 as consumer demand began to grow once again. Additional overtime shifts have been added to keep up with the high demand for the company's Chevrolet Camaro and the previously announced addition of the Buck Regal to the Canadian production line-up. This will see GM add another shift to their Ontario plant in 2011.

General Motors and its Canadian subsidiary were almost wiped out last year during the economic downturn. The demand for larger, gas-guzzling vehicles has declined considerably as more economic, fuel-efficient vehicles are what consumes are looking to buy. This domino affect caused GM to shed about 2,600 jobs and one plant closure affecting an additional 1,000 workers. US government intervention kept the US-based company afloat throughout 2009, however, GM eventually filed for bankruptcy protection in June, mere days after receiving a multi-billion bailout package from the US, Canadian and Ontario governments.

This re-hiring news by GM is key timing for the company's previous workers who were brought to their knees last year over the collapse of the North American auto industry. Most of these people have exhausted their employment insurance and other social benefits. If you are still rebounding from a job layoff or too much debt and are in need or financial advice or a consolidation, there are many private loan companies that can help. Bad credit is not a problem as some private lenders specialize in bad credit loan. These financial institutions can easily be found on-line. Some even offer 24 hour, no obligation applications.

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