Five new vehicles to be introduced as part of restructuring
Feb 20, 2009 - 06:51 PM
By Ian Caldwell
OSHAWA -- General Motors says it wants to launch five new vehicles at plants in Oshawa and Ingersoll but cuts in union wages and benefits are also going to be required to put the company back on the road to recovery.
The company is also looking for bailout loans from both the federal and provincial governments.
A dollar figure was not spelled out in a plan submitted this afternoon, however, it's expected to be in the $6- to $7-billion range and is subject to negotations with the government to be completed before March 31.
While the medicine could be harsh, the company said it does not expect any further cutbacks in its manufacturing operations will be needed.
"At this time no further (General Motors Of Canada) plant closures are contemplated," the plan said.
GM wants cuts in wages and benefits to what it calls "benchmark levels", as well as government support as it restructures.
"The restructuring plan will achieve long-term viability and enable GM Canada to repay Canadian taxpayers," the company said.
In return, it says it will be able to launch the five new vehicles, including "new hybrid vehicle production, new flexible transmission production in St. Catharines and significant advanced environmental R&D for next generation electric car systems, with suppliers and universities in Canada."
GM previously committed to a new $120-million Automotive Centre of Excellence to be built at the University of Ontario Institute of Technology in Oshawa and it's in the process of transforming its Oshawa-based Canadian Engineering Centre into what it calls "a smaller but higher added-value advanced environmental R&D centre."
And Oshawa seems destined to play a key role the company's plans for electric cars.
"The (Canadian Engineering Centre) will support the 'electrification of the car' and work collaboratively with universities and suppliers through the new General Motors of Canada Automotive Centre of Excellence," the company said in the 52-page document.
"I am encouraged by the plan that GM has put forward," Michael Bryant, Ontario Minister of Economic Development, said in a news conference after the GM's restructuring plan was submitted.
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