GM-Suzuki plant halts production

CAMI Automotive Inc. will halt production at its assembly plant in Ingersoll for about six weeks before the end of the year as the impact of a struggling U.S. economy deepens.

The temporary stoppage at CAMI, a joint venture between General Motors of Canada Ltd. and Suzuki Motor Corp., will affect more than 2,000 employees and thousands of other workers at scores of parts operations in the region.

“We are keeping our inventories tightly in line with projected market demand,” said GM Canada spokesperson Stew Low. “The U.S. market continues to be a challenge and we are keeping a close eye on inventory levels.”

The plant builds the Chevrolet Equinox, Pontiac Torrent and Suzuki XL7 sport utility vehicles on two shifts. After a strong recovery in recent years, output at the plant has fallen almost 10 per cent to 101,297 in the first eight months of 2008 from the same 2007 period, statistics show.

“The situation is not so much a reflection of the market for small SUVs but the downturn in the U.S. economy,” said Peter Kennedy, a senior official for the Canadian Auto Workers. “People in the U.S. are simply not buying big-ticket items like household appliances and cars.”

The effect has spilled across the border into southern Ontario where some automakers and parts makers have slashed production significantly, closed plants permanently and cut thousands of manufacturing jobs this year. Canada exports almost 90 per cent of its auto output to the U.S.

Meanwhile, union officials said Ford Motor Co. of Canada Ltd. will stop output of the Crown Victoria and Grand Marquis full-size passenger cars at its St. Thomas car plant for a week next month. That will idle about 1,000 workers at the plant which is already operating on only one shift.

Ford spokespeople could not be reached for comment.

Union officials at GM added the company is also reducing overtime significantly at its car operations in Oshawa for the remainder of the year because of slowing demand for the Chevrolet Impala. But the company said the reduction in overtime will be minimal.

GM has already announced that it will halt output at the Oshawa truck plant for seven weeks starting Sept. 8 due to plunging demand. That plant, which operated on three shifts and overtime less than a year ago, will close next summer.

Earlier this week, Guelph-based Linamar Corp. revealed it will lay off more than 400 workers because of falling business from vehicle makers.

More than 200 workers are already on layoff at Linamar.

Among other major reductions, Magna International Inc., the country’s biggest auto-parts company, is laying off about 400 workers at its truck frame plant in St. Thomas next month.

Source:thestar.com

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