GM to add third shift in Oshawa, ramp up in Ingersoll

TORONTO, Ont. – As a sign that GM Canada is recovering from the worst crisis in its history, more than 600 laid-off workers will be recalled this year as the automaker adds a third shift at its Oshawa assembly plant and ramps up production in Ingersoll, Ont.

The automaker, which had to shut down most of its North American operations for weeks last year due to weak demand and the near-collapse of its parent company, said the changes are in response to growing customer demand for the Chevrolet Equinox and GMC Terrain.

The vehicles are currently produced at the CAMI plant in Ingersoll, in southwestern Ontario. But GM Canada plans to do some of the Equinox work at its main manufacturing location in Oshawa.

A third shift in Oshawa will be added in October to do the work, with about 600 laid-off employees there to be recalled. All the laid-off employees at CAMI will be recalled and 70 new jobs are expected to be added by August.

GM’s move is timely for workers who have been hit hard by the economic downturn that brought the North American auto industry to its knees last year, he added, saying most of GM’s laid-off workers have nearly exhausted their employment insurance and other social benefits.

GM and its Canadian subsidiary were nearly felled last year by the economic downturn, which compounded years of losses at the automaker known as the world’s largest for decades.

Sagging demand for larger, gas-guzzling vehicles hit the company particularly hard, costing thousands of jobs across North America. GM Canada shed about 2,600 jobs with the closure of a truck plant in Oshawa. It also announced plans to shut down a transmission plant in the southwestern Ontario city of Windsor, affecting more than 1,000 workers.

At the company’s U.S.-based parent, executive shakeups and government intervention dominated 2009 as the automaker struggled to stay afloat.

General Motors eventually filed for bankruptcy protection On June 1, emerging just 40 days later after committing to sweeping restructuring efforts and receiving multi-billion-dollar bailout packages from the U.S., Canadian and Ontario governments.

The once prolific automaker scaled back to produce just four core brands: Chevrolet, Buick, Cadillac and GMC. The company is either selling or winding down its other iconic brands, including Pontiac, Hummer and Saab.

The sharp reduction cost General Motors its title as the world’s No. 1 automaker. That honour went to Toyota in 2009, but may once again be up for grabs as the Japanese carmaker battles against weak demand and a spate of bad publicity connected to recalls of eight of its models.

On Friday, Toyota announced the recalls had led to work stoppages at plants in France and the U.K. totalling nine days.

The outlook for GM Canada began to improve in late 2009 as demand began to rebound.

Overtime shifts were needed to keep up with the production of the Chevrolet Camaro, and the addition of the Buick Regal to the Canadian production lineup added two shifts at the Oshawa plant over a three-month stretch.

In December, GM bought Suzuki Motor Corp.’s 50 per cent stake in the Ingersoll CAMI plant and established itself as the soul automaker at that facility. The purchase allowed GM to add shifts and ramp up production of the Equinox and Terrain models.

GM Canada has also introduced flexible transmission production at its St. Catharines, Ont., facility to assemble a fuel-efficient, six-speed front-wheel-drive transmission.

Earlier this month, Kevin Williams took over as the Canadian subsidiary’s new president, succeeding Arturo Elias after a nearly four-year stint at the helm.