GM Closes Windsor Tranny Plant
CTV reports that General Motors is closing its transmission plant in Windsor, Ontario by 2010. The plant currently employs 1400 workers producing ye olde four-speed automatic transmission. GM Canada’s Stew Low offered an explanation that made no mention of a warning shot over the Canadian Workers Union (CAW) bow, in advance of contract negotiations. “With the dynamic of our changing portfolio, there just wasn’t a new transmission to put into there.” Translation: four-speeds are so 1939 and you guys cost too much. The announcement caused some political scuffles. The provincial (left-leaning) NDP party implored Ontario Premier Dalton McGuinty to step in and stop the rampant job losses in the automotive industry. As The Big 2.8 have shuttered plants and moved production to cheaper jurisdictions, investments from Asian automakers have not risen to produce employment break-even. It’s a shame too, since Windsor was on a roll. On the plus side, given Ontario’s more diversified economy, it appears it can shelter a contraction of the NAFTA-zone’s automotive industry with less pain than Michigan. But, unless a career at GM provides a good stepping stone to working on Bay Street, that won’t soothe any of the CAW members’ worries.