GM Canada delivered their restructuring plan to Ottawa earlier this week, outlining a transformative path to sustainability that would enable the Automaker to repay Canadian taxpayers.
The automotive industry has hit an unprecedented low, and some of its largest manufacturers are suffering because of a massive drop in sales, partially due to a massive decline in available consumer credit.
GM's Canadian restructuring plan has three key components. These include self-help cost reductions and a 'Contract Manufacturer' business model, alignment of worker compensation to benchmark levels, and completing the government support process for financing.
Further, the plan maintains GM as one of Canada's largest automakers-- keeping GM Canada as the producer of between 17 and 20 percent of US production. This aspect of the plan maintains the government's principle of proportional support for proportional production vis-à-vis GM USA.
The restructuring plan requires the government and CAW to have an agreement completed by March 2009, and enables the launch of five new vehicles in Oshawa and Ingersoll with suppliers in Canada. According to a GM press release, this restructuring plan retains GM Canada's customers, dealer network and vehicle lineup as a top strength and priority.
Additionally, there are no further plant closures slated beyond those already announced.
photo:General Motors, Jupiter Images
The automotive industry has hit an unprecedented low, and some of its largest manufacturers are suffering because of a massive drop in sales, partially due to a massive decline in available consumer credit.
GM's Canadian restructuring plan has three key components. These include self-help cost reductions and a 'Contract Manufacturer' business model, alignment of worker compensation to benchmark levels, and completing the government support process for financing.
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Further, the plan maintains GM as one of Canada's largest automakers-- keeping GM Canada as the producer of between 17 and 20 percent of US production. This aspect of the plan maintains the government's principle of proportional support for proportional production vis-à-vis GM USA.
The restructuring plan requires the government and CAW to have an agreement completed by March 2009, and enables the launch of five new vehicles in Oshawa and Ingersoll with suppliers in Canada. According to a GM press release, this restructuring plan retains GM Canada's customers, dealer network and vehicle lineup as a top strength and priority.
Additionally, there are no further plant closures slated beyond those already announced.
photo:General Motors, Jupiter Images