GM to expand car capacity after pickup plant closure

OSHAWA, Ont. — The boss of the Canadian Auto Workers Union says GM employees can "breathe a sigh of relief" now that the union and automaker have struck a deal to increase capacity at a car assembly plant in Oshawa following the announced closing of the pickup truck facility in the same city.

Truckers that haul autoparts and the cars themselves may be just as thankful.

According to the Globe & Mail this morning, the two sides have settled the longstanding dispute over GM‘s decision to shutter its pickup plant, effectively eliminating 2,600 jobs.

The Big Three company has agreed to build two additional passenger car models — including the new Camaro muscle car — at a separate "flexible" plant in Oshawa.

Some workers who lose their jobs at the truck plant may be transferred to the car facility to help meet the extra production capacity. The rest could be paid a portion of their salary for as long as four years after the pickup plant closes, according to the Globe.

The closure of the truck plant triggered angry protests by CAW workers in early June. Members even blocked GM’s Canadian headquarters for two weeks.

The closure is being blamed on rising fuel prices and the resulting collapse of pickup truck and SUV demand across North America.