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GM offered buyouts to North American employees and announced plans to lay off white-collar employees if it did not meet a cost-cutting goal.
The informed person confirmed that GM had planned a major announcement on the future of the Oshawa plant, but stated that the builder wanted to inform employees of its plans before making any announcement about the plant.
Total vehicle production at the Oshawa complex fell 60% in the first ten months of 2018 compared to the same period last year, according to Auto News production data.
GM employs approximately 2,500 union members in Oshawa, which produces Chevrolet Impala and Cadillac XTS sedans. It also complements the final assembly of Silverado and Sierra pickup trucks, which sell best and are shipped from Indiana.
Political pressure is already mounting in Canada on GM, which has accepted billions of dollars in assistance from the US, Canadian and Ontario governments after filing for bankruptcy protection during the 2009 global economic downturn.
"We are aware of the reports and will work in the coming days to determine how we can continue to support our auto sector and our workers," said a Canadian government official.
"The jobs of many families are at stake," said Colin Carrie, MP for Oshawa. "Communities across Ontario would be devastated if this plant closed.
The US manufacturer has other facilities in Canada, including a plant in Ingersoll, Ontario, where it assembles the Chevrolet Equinox.
The announced closure of the plant is a new blow to the Canadian auto industry, which has lost jobs to the US, where governments offer rich incentives to manufacturers, and Mexico where the labor costs are lower.
However, a new trade agreement signed in September by the United States, Mexico and Canada leaves significant room for Canadian mills to increase their duty-free exports.
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