General Motors will close the Oshawa plant, sources said

General Motors is closing its Oshawa plant as part of the restructuring of its global operations into zero-emission stand-alone vehicles, sources said.

Two sources, informed of General Motors' plan, said the Oshawa plant would be completely shut down. According to these sources, Canada is not the only country affected by the decision of the auto giant to divert its investments from traditional vehicles.

The offices of Prime Minister Justin Trudeau and Ontario Premier Doug Ford were informed of the decision late Sunday before the official announcement on Monday. A federal official later told the Globe and Mail that the government would look into the impact of the closure and what steps it could take to help laid-off auto workers.

Last fall, GM outlined its strategy to strengthen its presence in the electric car market, announcing two models within 18 months, as part of a larger campaign for a zero-emission fleet. The company announced that it was planning to launch 20 new electric vehicles by 2023, but without setting a date for a 100% electric offer. At the time, the company stated that it did not expect jobs to be lost during the transition to electric vehicles.

GM employees were told to expect an announcement Monday morning at 10 am, but they did not receive any details.

Unifor said in a statement that GM had told him that the plant would be inactive in a year.

"No product was awarded to the Oshawa assembly plant after December 2019," the union said, adding that the decision violated a previous GM commitment.

The GM plant, located east of Toronto, employs 2,500 unionized workers and assembles the Chevrolet Impala, Buick Regal, Cadillac XTS and Chevrolet Equinox. She also completes the Chevrolet Silverado and GMC Sierra trucks. Oshawa is the company's Canadian headquarters and is home to its technical center, which specializes in chassis systems, alternative fuels and vehicle technical assistance.

"All I have been told is that an announcement was announced at 10 o'clock. They did not say as much, if not an announcement [it] could affect the facilities in Oshawa, "said one person, who did not want to be identified because she was not allowed to speak to the media about it.

David Paterson, a spokesman for GM, said the company had nothing to report on Sunday night and that she would not comment on "speculation".

The plant was saved from the impending closure of 2016 by a GM plan to invest $ 400 million to modernize an assembly line. The union representing auto workers, Unifor, said the investment had helped dispel fears of a plant closure in 2019.

However, car manufacturers in Canada face higher labor and other costs than factories in the United States and Mexico.

The news comes shortly after the renegotiation of the North American Free Trade Agreement. Negotiations on the new three-way agreement resulted in a 62.5% increase in North American content in duty-free vehicles from 62.5% to 75%. In addition, 40% of vehicles must be manufactured by workers earning $ 16 an hour, a shift that favors Canadian and US auto plants over those of Mexico.

The proposed trade agreement did not deal with US President Donald Trump's duties on 25% and 10% imports of steel and aluminum, respectively. Ford Motor Co. said the metal price would cost $ 1 billion in profits.

Flavio Volpe, president of the Automobile Parts Manufacturers Association, said investment in Mexican car factories had increased in anticipation of recent free trade talks. He pointed out that the GM plant in Oshawa, like other Canadian plants, had high operating costs, even though it won industry awards for producing high quality vehicles.

"General Motors in Oshawa has been the anchor point in this region since 1908," Volpe said by phone.

Oshawa Mayor John Henry said in an interview Sunday night that he had only heard about the media closing through press reports and that he was not going to be able to do so. Had been in contact with anyone at GM.

"I'm still shocked and hope it's a rumor," said Mr. Henry.

Mr. Henry stated that family members were still working at GM. His father was a factory worker and foreman at the factory and his sister worked there at the university.

"He [the closing] will affect a lot of people. Not all workers in the auto industry at the plant live in Oshawa. It will affect many communities, including Port Hope, Cobourg, Peterborough, Lindsay, Kawartha Lakes, and the entire Durham region, "he said.

In June, Detroit-based GM warned the US government that higher tariffs on metals as well as imports from China and Europe would drive up auto prices, lower prices sales and a reduction of jobs.

"The correlation between a decline in vehicle sales in the United States and the negative impact on our workforce here, which in turn threatens jobs in the supplier base and surrounding communities, can not be ignored, "said GM. "Alternatively, if prices are not increased and we decide to bear the burden of tariffs or movement of facilities, it could still reduce the investments, jobs and salaries of our employees."

In October, the Detroit News announced that GM had offered voluntary severance pay to 18,000 employees in North America.

GM posted a profit of $ 2.5 billion in the last quarter, although sales volumes fell by 15% over the same period of the previous year.

With records of Caroline Alphonso