London parts makers could feel the pinch by GM plant closures
One London autoparts maker could lose nearly a third of its business
Automotive parts producers in London, Ont. could see a hit to their bottom line after the announcement that three General Motors (GM) assembly plants will be closing their doors by the end of 2019, including their operation in Oshawa.
The automotive giant made the announcement as part of an initiative to "improve their overall business performance."
"The actions we are taking today continue our transformation to be highly agile, resilient and profitable, while giving us the flexibility to invest in the future," said Mary Barra, GM Chairman and CEO in a news release.
The reality is about 2,500 employees at the Oshawa facility could be looking for work in 2020, along with 3,100 other employees at the Detroit-Hamtramck Assembly in Detroit, Michigan and Lordstown Assembly in Warren, Ohio.
Job casualties could extend beyond the assembly plants as automotive parts manufacturers lose business as a result of the shut-downs.
London automotive parts maker London Automotive & Manufacturing Ltd. (LA&M) produces parts for all three GM plants. While they only ship a small number of parts to Oshawa, a significant portion of their business goes south of the border.
"The announced closures at Detriot-Hamtramck and Lordstown will have more of an impact as we supply over 50 parts to those facilities for the Volt, Cruze and Lacrosse, which account for roughly 30 per cent of our annual sales," said Craig Hodgins, LA&M president in an email.
Hodgins said if the closures go ahead as announced, it could negatively impact the company and its associates.
CBC has reached out to other parts makers in the London area.
During a 2017 labour dispute at General Motors' CAMI Automotive Inc. facility in Ingersoll, a number of local parts makers took measures to deal with demand shortages. Employees at Qualtech seating systems, Autoneum, and Martinrea were all affected by shift cancellations and temporary layoffs.