GM: Oshawa may lose 2 models to US

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You win some, you lose some. Reports indicate that the agreement GM recently signed with the United States’ United Auto Workers union (UAW) could result in a shift of the Chevrolet Equinox and GMC Terrain to the US.

The Tennessean newspaper reported this week that production of both crossovers could be moved to Spring Hill, Tennessee. At the same time, representatives of the UAW, one of the most influential unions in the States, said the currently inactive plant would reopen again in 2012 and manufacture two models.

The president of the Canadian Auto Workers union, Ken Lewenza, is understandably worried.

He said the situation “has him wary”, adding “where there’s smoke, there’s usually fire”. He intends to contact GM and obtain a guarantee that both highly popular vehicles will stay in Canada.

GM doesn’t usually comment on the speculation surrounding its production activities and simply noted by way of spokesperson Faye Roberts that no announcement concerning the CAMI (Ingersoll) and Oshawa products was currently scheduled.

The Equinox and Terrain are mainly built at the CAMI plant and then shipped to Oshawa for their final assembly. It’s a rather unusual process but it doesn’t affect the quality of the vehicles, says Lewenza.

Though production is sufficient to meet consumer demand, inventory of both crossovers is low by GM standards (33 days for the Equinox and 42 for the Terrain). Moving the models to Tennessee would solve that problem.

We learned in May that the next-generation Chevrolet Impala would be manufactured at Detroit-Hamtramck instead of Oshawa.

GM Canada’s corporate communications manager, Jason P. Easton, reassured us that Canadian production commitments were revealed publicly and that his employer intended to meet those goals.


Source: Automotive News