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GM Sends Life-Saving Plan to Canada

GM Canada today announced that it submitted the viability plan to the Canadian and Ontario Governments, with the United States-based automaker expressing its confidence that together with the state officials, it will manage to revamp sales and re-become the top industry player it used to be before the economic downturn. While General Motors says the restructuring plan includes most steps the company would need to follow to save the recession-hit company, it also includes a few lines that might contradict with employees’ expectations.

For example, GM says it plans to roll out a “10% reduction in executive salaries and reduced benefits and pay for salaried workers”. However, there’s no job cut mentioned in the plan, a fact that perfectly complies with government’s requirements to preserve jobs across the country.

Another thing worth mentioning is that General Motors says that in order to remain the top automaker in Canada, it has to “offer more 2009 hybrid models than any competitor”. While we’re not sure how interested Canadians actually are in hybrid vehicles, General Motors already confirmed plans to rely on less-polluting technologies, as several Volt-based models are expected to be released in the next few years.

Because we’re sure you’d like to read them, here are the most important highlights of GM’s survival plan sent to the Canadian government:
  • Enables the launch of five new vehicles in Oshawa and Ingersoll including new hybrid vehicle production, new flexible transmission production in St. Catharines and significant advanced environmental R&D for next generation electric car systems, with suppliers and universities in Canada
  • Retains GM Canada customers, dealer network and new vehicle line-up as the company’s top strength and priority
  • Secures pensions for GM Canada retirees and would establish a "VEBA-like" structure for health care benefits
  • Fully consistent with GM's loan conditions with the US Department of Treasury and GM's Viability Plan as submitted to the US Treasury on February 17, 2009
  • Maintains GM Canada’s share of Canada / US production which is expected to range between 17% and 20% between 2009 and 2014. GM Canada remains one of Canada’s largest automobile manufacturers


 
 
 
 
 

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