In a deal designed to assuage the tensions between General Motors and the Canadian Auto Workers union, GM's new car plant in Oshawa, Ontario will gain two additional models to build. The old truck plant in the same city, though, will still close sometime in 2009. Until then, the truck plant will continue to assemble hybrid versions of GM's full-size pickup trucks. The new Oshawa plant will begin building GM's long-anticipated Camaro revival and will also get some Chevrolet Impala production and an unnamed Buick model at some point in the future.
In addition to the extra work at the brand new Oshawa plant, displaced workers with at least 26 years of GM employment will get a percentage of their yearly salary, even after the plant has closed, until they have reached the necessary 30-year mark for retirement. Other qualifying ex-employees will get buyout packages of some sort.
Honda has got to be happy that it has a hot selling compact car to take some of the pain out of the slowing minivan and SUV markets. Hurt by the sky-high price of gasoline, both the Odyssey and Pilot, both recently redesigned, are sitting on dealers lots longer than Honda would like. In order to match production with consumer demand, Honda will close its plant in Lincoln, Alabama for two days next month and cut second shift production at the plant every Friday in August through October. Displaced workers can choose to take either unpaid time off or use paid vacation leave. Some of that unused capacity will be taken up by the Ridgeline, which will now be assembled at the Lincoln plant instead of in Ontario where it is currently being built.
The Civic, on the other hand, will see its production boosted at the East Liberty, Ohio plant and in Alliston, Ontario, where capacity will be available due to the Ridgeline's departure. Score another point for Honda's modular manufacturing techniques.
Despite rising tensions (and a lawsuit) between General Motors and the Canadian Auto Workers union, the automaker may be interested in adding a new car line at its soon-to-closed truck plant in Oshawa, Ontario. Though that plant was originally scheduled to stay open a few more years, slumping sales of full-size trucks built there have forced GM to announce its early closure along with three other pickup and SUV plants. Since that announcement, union workers have barricaded GM Canada's headquarters for the last eight days in protest, which we'd imagine might make it difficult for GM management to negotiate with union officials... but what do we know?
According to The Detroit News, however, GM has been talking with Ontario's Economic Development and Trade Minister, Sandra Pupatello, who says that the government is very interested in securing the new vehicle line as quickly as possible. Even if a decision is made in short order, it is likely the plant's 2,600 workers would be out of work for up to two years after the closes and before its ready again with new tooling for a passenger car line.
Hold on to your britches folks. General Motors dealings with the Canadian Auto Workers union just took another turn for the worse. GM, like every other full-line automaker selling vehicles in the United States, has been unable to move as many pickup trucks as it had hoped since the price of gas has spiked. In response to the shifting tide of vehicle sales and to slow the huge financial hemorrhaging, GM announced about eight days ago that it would be closing four plants that build trucks and SUVs, including one in Oshawa, Ontario. Unfortunately, the General had recently promised to keep that particular plant open for a few more years, so the announcement more than irked the Union officials from up north.
Here's where things get real ugly. In retaliation, the CAW has blockaded the entrance to the GM headquarters in Canada for the last eight days. As you might imagine, GM has a slight problem with this and has taken the matter to court, where documents reveal that the automaker wants C$250,000 from the local union and five of its members for a total of $1.5 million in damages. We're not sure if this impending lawsuit will impact the Union's plans for a rally this Thursday in the parking lot of the Oshawa headquarters, but it's probably safe to say that this situation won't have a happy ending.
As domestic automobile manufacturers cut production and lay off workers because they were caught off-guard when consumer buying habits switched to more fuel-efficient vehicles, Honda will effortlessly shuffle its production to meet U.S. demand for small cars. Without cutting any jobs in North America, Honda will move assembly of the Honda Pilot SUV and Honda Ridgeline pickup from Alliston, Ontario, to Lincoln, Alabama. This move will allow the Japanese automaker to increase production of the fuel-efficient Honda Civic in its Canadian plant. Later this year, Honda is expected to add another 2,000 jobs as it begins to build Civics in Indiana, as well. That plant will be Honda's seventh in North America. Honda has sold 34,163 units of the Civic in North America through April of this year, which is 8.2% more Civics sold on average per day than in 2007. For comparison's sake, Toyota has sold 32,435 Corollas, Ford has sold 23,850 Foci and Chevy has sold 18,636 Cobalts so far this year.
With Fiat preparing to bring some of its products to the American market, local government leaders have been hard at work courting CEO Sergio Marchionne to produce vehicles in their state or province. Marchionne declared in March that with the weak American dollar, his company would have to strongly consider local production for sales in North America.
Among those politicians who have reached out to Fiat, congressional representatives from the states of Kentucky and Georgia have met with executives from the Italian auto giant to discuss the possibility of opening plants in their districts. However the premier of Ontario seemed to take it one step further by flying to Italy to meet with Marchionne, who himself was raised in the same Canadian province. After General Motors announced the closure of two plants in the past couple of months, Ontario is keen to find tenants for the abandoned facilities. Marchionne, meanwhile, has expressed interest in producing in Mexico, allowing Fiat to extend its operations in Latin America northward to support its foray into the North American market.
As for distribution, while Fiat already networks established for its Case New Holland agricultural equipment division, as well as for its top-end brands Ferrari and Maserati. However Fiat is likely to set up separate distribution channels for Alfa Romeo and, if and when the day comes, the Fiat 500.
Four U.S. states, one Canadian province and one territory have already banned smoking in your car when children are present. Next up to potentially adopt the legislation is Ontario, Canada. A bill has been introduced into parliament that would fine anyone smoking in a car when someone under the age of 16 is also in the car.
The bill makes no exceptions for, well, anything. It doesn't matter if the car is stopped or moving, if all the windows are down and the sunroof open, or whether the smoker is driver or passenger. Smoke inside a motorized vehicle with a "child," and it'll cost you $250 Canadian.
While we don't argue with the supposed spirit of the law -- protecting children from the ill health effects of smoke -- we do wonder about the relevant age. Sixteen years old seems kind of long in the tooth to be classified as a "child," while 17-year-olds are suddenly adults who can handle it. There would also seem to be more dangerous things out there than traces of smoke at 55-MPH with the windows down, but it is Canada after all, so maybe not.
