GM shutting down the Oshawa plan

[Canadian]

Things don't look good for the Canadian economy, or at least for Ontario. A few days back GM announced that they'll be closing their Oshawa pickup truck plant. GM will layoff around 2,600 employees at this plant next year, and the plant closure will affect many other businesses that supply the plant, which might result in additional layoffs.

What is worrisome is that all these manufacturing jobs were relatively well paid, and now with the struggling auto industry, all laid off people will have a hard time maintaining their standard of living and finding a job. This doesn’t bode well for our economy.

[BankAdmin]

I agree that the Ontario's economy is suffereing due to the downturn in US, but Alberta's economy on the other hand is booming, which should balance the things a bit for Canada.

[donner]

I don't think that closing the Oshawa plant will have a big impact on Canadian economy, if any at all. There are plenty of jobs in Ontario, and all laid off people should be able to easily find new jobs.

[sunshine]

All American car manufactures may decide to follow GM and close its plants here in Canada and this will have an impact on the industry. With the US and Canadian dollar at par we may see more plants closed in the future...

[Canadian]

Originally Posted by sunshine

All American car manufactures may decide to follow GM and close its plants here in Canada and this will have an impact on the industry. With the US and Canadian dollar at par we may see more plants closed in the future...

The American car manufacturers compete in a very tough market, with companies like Honda and Toyota, which offer superior cars in general. The Japanese companies also have lower labor costs, which makes the survival of American auto companies even harder.