TORONTO (AP) — The Globe and Mail is reporting that General Motors Corp. has scrapped plans to build some rear-wheel-drive cars at its giant operations in Oshawa, Ont.
The move that could threaten the long-term future of the largest vehicle assembly plant in Canada and thousands of jobs.
Industry sources told the Globe the automaker has scuttled the rear-wheel-drive version of the Chevrolet Impala, which was scheduled to represent half the output of a leading-edge flexible assembly plant now under construction in Oshawa.
The sources say production of rear-wheel-drive Cadillac and Buick sedans originally slated for Oshawa will be shifted instead to Lansing, Mich.
GM will begin producing the reborn Chevrolet Camaro as a rear-wheel-drive muscle car in Oshawa later this year.
Sources tell the Globe that say scrapping the proposed rear-wheel-drive Impala reduces Oshawa's planned output by 250,000 a year.
The move comes as GM prepares for crucial contract talks with the Canadian Auto Workers union this summer and seeks government financial help for an investment in St. Catharines, Ont.
Ottawa and Ontario have already agreed to give the company $435-million as part of a $2.5-billion plan to upgrade its Canadian operations.
Much of the $2.5-billion will be spent consolidating two Oshawa car plants into one flexible plant that will turn out the Camaro.
