- Canada seeks millions back after GM cuts 500 Oshawa jobs plant.
- Cuts follow GM ending BrightDrop van work in Ingersoll Ontario.
- Ottawa says future funding will favor firms protecting jobs local.
The automotive industry has been nothing if not hard to predict over the last few years. A few months ago, General Motors backed out of commitments to build electric vans in Canada. Now it’s pulling back, laying off about 500 workers, and leaving federal officials in Ottawa with more than a few questions, and a bill they’d like paid back.
Government officials say that they’re going to get back the incentive money provided to GM as part of the original deal.
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Industry Minister Mélanie Joly said Friday that Ottawa has already informed GM it intends to recover incentive money tied to employment and investment commitments, following the company’s decision to reduce Oshawa from three shifts to two beginning February 2, a move officials believe could lead to as many as 1,200 job losses across the supply chain.
That plant, which currently builds Chevrolet Silverado pickups, many of which are shipped to the U.S., has been a key piece of GM’s Canadian operations.
Ottawa Tallies the Bill
“I had a meeting yesterday with people from GM, and I told them that we would be getting our money back,” Joly said in an interview with the CBC. “If GM doesn’t want to continue to invest more in Canada, we will invest more in other players. We’ll fight for these workers, and we’ll find them jobs.”
This all comes on the heels of GM scrapping plans to develop its BrightDrop EV van in Ingersoll.
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When originally announced, the government committed C$259 million (US$189 million at current exchange rates) to upgrading plants both in Ingersoll and Oshawa. Joly said the amount Ottawa is seeking to recover is still being calculated, but confirmed it is in the “millions” and tied to both facilities.
“We want justice for Canadian taxpayers, who have no time for those who don’t believe in us,” she said.
Oshawa’s Future in Flux
GM confirmed to The Detroit News that it’ll proceed with the shift reduction in Oshawa. The automaker also said that it’s continuing to prepare for production of its next-generation gas-powered full-size trucks at the same plant.
That shift was supported by a previously announced C$280 million (US$205 million) investment at that plant specifically. While the government goes after GM, it’s also pivoting to reach out to other automakers.
Joly pointed to Toyota, which is building the RAV4 in Ontario, and to Honda, which maintained its job commitment despite changing plans away from EV supply chain production.
She and other government officials have gone as far as to visit and court Chinese automakers, along with mainstream brands like Volkswagen, Hyundai, and others.