General Motors of Canada Ltd. (GM), following its U.S. parent's
lead Monday, detailed additional restructuring moves including
cutting its hourly workforce by almost 6,000 by 2014 and reducing
its dealer networks by 42% by the end of 2010.
The General Motors Corp. (GM) unit said it's continuing to work
with the Canadian and Ontario governments and expects to soon
complete a short-term bridge-loan agreement.
GM Canada is required to provide an updated restructuring plan
by May 30 to be eligible for government financial assistance.
The Oshawa, Ont.-based automaker reached a new competitive
agreement with the Canadian Auto Workers union on March 11 and
expects further labor talks concerning the provisions of a new
CAW-Chrysler LLC (C.XX) agreement in the days ahead.
As reported, under the CAW-Chrysler Canada deal, the hourly
labor cost of Chrysler's 8,000 unionized Canadian workers will be
cut by about C$19 an hour.
GM Canada said its active hourly labor costs will drop by 50% to
US$500 million by 2010 and remain at that level into 2014. GM
Canada executives will take a 10% pay cut starting in May, while
the remainder of the workforce will assume a 3-7% reduction in
pay.
The company's workforce will be cut to 4,400 in 2014 from 10,300
in 2008. It said it's undertaking further salaried headcount
reductions and will review overall employment levels with the
Canadian government as part of its overall restructuring plan.
GM Canada will also follow its U.S. parent's move to focus on
four core brands. Dealer networks will be reduced to between
395-425 at the end of 2010 from 705 in 2009.
As reported, General Motors Corp. will cut 21,000 hourly jobs
and eliminate its Pontiac brand by the end of next year as part of
its stepped-up restructuring plan.
The U.S. parent, which is surviving on federal loans, is racing
to restructure by June 1.
-Judy McKinnon; 416-306-2100; AskNewswires@dowjones.com