gmcl restructuring plan

Transcription

GENERAL MOTORS OF CANADA
RESTRUCTURING PLAN
Submitted by:
GENERAL MOTORS OF CANADA LIMITED
Submitted to:
INDUSTRY CANADA
AND
ONTARIO MINISTRY OF ECONOMIC DEVELOPMENT
Friday February 20, 2009
Submitted: February 20, 2009
GMCL Restructuring Plan
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GMCL RESTRUCTURING PLAN - HIGHLIGHTS
GMCL‟s Restructuring Plan is achievable and transformative. Despite further North
American market deterioration, the Restructuring Plan will achieve long-term viability and
enable GMCL to repay Canadian taxpayers. The Restructuring Plan has three Key
Components:
1) Implement further "self help" cost reduction actions and adopt a new, beneficial "Contract
Manufacturer" business model;
2) Obtain the CAW‟s agreement to achieve legacy cost reductions and align active worker
wage and benefit levels to benchmark levels; and
3) Complete Canadian and Ontario Government support agreements for sufficient financing
to sustain operations and restructure GMCL's balance sheet to address unsustainable
legacy costs.
Restructuring Plan Highlights:
 Maintains GMCL‟s share of Canada / US production which is expected to range
between 17% and 20% between 2009 and 2014. GMCL remains one of Canada‟s
largest automobile manufacturers.
 Embraces the Federal and Ontario Governments' Principles for proportional production /
proportional support vis-a-vis GM in the US.
 Requires Agreements with the Canadian and Ontario Governments and the CAW to be
completed in March 2009.
 Enables the launch of 5 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.
 Adopts more conservative market assumptions.
 Retains GMCL customers, dealer network and new vehicle line-up as the company‟s top
strength and priority.
 Contemplates no further GMCL plant closures at this time, reflecting restructuring
actions already announced.
 Enables GMCL to remain Canada's top selling automaker and offer more 2009 hybrid
models than any competitor.
 Includes shared sacrifices such as a 10% reduction in executive salaries and reduced
benefits and pay for salaried workers.
 Secures pensions for GMCL retirees and would establish a "VEBA-like" structure for
health care benefits.
 Fully consistent with GM's loan conditions with US Department of Treasury and GM's
Viability Plan as submitted to US Treasury on February 17, 2009.
 Meets viability requirements by establishing GMCL as a sustainable, stand-alone
enterprise.
The GMCL Restructuring Plan should be read together with GM‟s Viability Plan submitted to
US Treasury on February 17, 2009. GMCL has conducted extensive due diligence and
shared comprehensive financial and competitive information with the Canadian and Ontario
governments under appropriate non-disclosure agreements.
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Table of Contents
I
Executive Summary
4
II
Background
8
III
The Challenge – Markets, Credit, Structure, Legacy, Costs
9
IV
GMCL’s Restructuring Plan – A Viable Stand-Alone Entity
13
V
Investments in Green Technology and Flexible Manufacturing
18
VI
GM Suppliers in Canada
25
VII
GMCL Dealers in Canada
26
VIII
Risks
29
IX
Conclusion
30
X
Appendices
A
GM Viability Plan
31
B
Forward-Looking Statements
32
C
Key Facts About GM‟s Transformation for Long-term Success
33
D
GMCL Company Profile
40
E
Chronology of Recent GMCL Production Restructuring
41
F
Quality and Productivity Leadership
44
G
GM Suppliers and GMCL Dealers
46
H
GMCL Canadian Engineering Centre
51
I
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EXECUTIVE SUMMARY:
General Motors of Canada Limited (“GMCL”) has prepared an achievable and
transformative Restructuring Plan, as outlined in this high-level summary submitted to
the Governments of Ontario and Canada. This Restructuring Plan includes necessary
business model changes and shared sacrifices. With agreements from key
stakeholders, the Plan would enable GMCL to achieve long-term viability and enhance
its value as part of the General Motors Corporation (“GM”) integrated North American
operations. The Plan will enable GMCL to sustain its strong proportion of automobile
production between Canada and the United States, maintain its position as one of
Canada‟s largest automobile sellers and manufacturers, launch new Canadian vehicle
mandates including Canada‟s first hybrid car production and enable significant
advanced environmental R&D in Canada with Canadian suppliers and universities. The
Plan would enable GMCL to emerge from the current market crisis as a viable
sustainable company and repay the Canadian taxpayer.
The Challenge – Markets, Credit, Structure, Legacy, Costs
The crisis of declining sales and credit availability that first manifested itself in the
United States automotive market in 2008 has since become a global industry challenge
that is now facing all automakers. In this challenging environment, GMCL further
accelerated the restructuring activities it began in 2005. While much has been
accomplished, GMCL continues to carry exceptional cost burdens related to its historic
business structure, pension and health care “legacy costs” and active wage and benefit
levels.
Significant steps have recently been taken in the US operations of GM to address
structural pension and health care legacy cost issues, and such work continues. These
legacy cost changes have not occurred in GMCL‟s operations for various reasons. The
cost of servicing these legacy obligations has become overwhelming for GMCL and, as
a result, immediate restructuring is required as GMCL is approaching the minimum cash
reserve levels required to meet its obligations.
The GMCL Restructuring Plan – A Viable Stand Alone Entity
GMCL welcomed and greatly appreciated the generous offer of short-term emergency
loans by the Ontario and Federal governments on December 20, 2008. With the
completion of the December 31, 2008 US Loan Agreements (“December US Loan
Agreement”) and other efforts to conserve cash within Canada, GMCL was able to
secure alternate capital sufficient to meet its short-term requirements. This enabled
management to develop GMCL‟s long-term restructuring plans and seek agreements
with key stakeholders before it becomes necessary to draw upon government
assistance (required in the absence of available private sector capital).
GMCL‟s Restructuring Plan respects the context and terms of GM‟s December 31 US
Loan Agreement reached with the US Treasury (UST). It should also be noted that the
December US Loan Agreement precludes “investments” in foreign subsidiaries. The
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Restructuring Plan therefore ensures GMCL will be viable as a stand-alone entity while
still operating within an integrated North American marketplace.
Three Key Components of the GMCL Restructuring Plan
1)
Implement further “self help” cost reduction actions and adopt a new
beneficial “Contract Manufacturer” business model;
2)
Obtain the CAW’s agreement to changes sufficient to achieve legacy cost
reductions and align active worker wages and benefits to benchmark
levels; and
3)
Complete financing agreements and related actions with the Ontario and
Federal Governments sufficient for GMCL to sustain its operations and
restructure its balance sheet in order to address legacy burdens and
ensure viability.
These key components, which are further described in this Restructuring Plan, need to
be addressed before the end of March 2009.
Proportional Production / Proportional Support
In its discussions with the Ontario and Federal Governments, GMCL has embraced the
Governments‟ stated Principles for support. Recognizing that GMCL is an important part
of GM‟s integrated North American business and marketplace, the Governments stated
their expectation that proportional levels of production in Canada, compared to that in
the US and Canada, be maintained. The Governments also offered to explore
conditional financial assistance for GMCL in proportion to that support provided by the
US Government to GM.
Under a successful restructuring, GMCL forecasts it would sustain its current strong
share of Canadian/US production, which is expected to range between 17 and 20%
between 2009 and 2014. This range contemplates yearly variations due to current and
new product launches and lifecycles.
GMCL has also discussed scenarios for longer term financing with the Governments
necessary to maintain GM‟s Canadian operations and to achieve GMCL‟s restructuring
and ensure its viability. GMCL is seeking proportional financing agreements with the
Federal and Ontario Governments in the context of GM‟s February 17, 2009 Viability
Plan (“GM Viability Plan”) submitted to the US Treasury (“UST”), which updated GM‟s
request for support. The GM Viability Plan (which is being evaluated by the UST) is
based on the further recent deterioration of global automotive markets. GM‟s updated
request (including an expected need to replace a $4.5 billion revolving line of credit
upon maturity in 2011) is for $22.5 billion in assistance. Some $13.4 billion of this
amount has now been advanced.
GM identified a further possible request for an additional $7.5 billion line of credit in the
instance of further US market deterioration to levels of 9.5 million units in 2009 and 11.5
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million units in 2010. If that industry scenario were to evolve, the total GM request
would amount to $30 billion. GM has also submitted Section 136 applications to the US
Department of Energy for funds in excess of $8 billion.
A Transformative Plan - Leaner and Greener
The GMCL Restructuring Plan is also transformative for GMCL – creating a leaner and
“greener” company and helping to shape the automobile technology of the future. The
Plan would enable the launch of five new fuel efficient GM vehicles in Canada, as well
as additional model variants including the first hybrid car to be manufactured in Canada.
GMCL‟s dealer network and its line-up of new products represent a critical positive
strength and a priority for GMCL‟s success. GM‟s new lineup of fuel efficient cars and
crossovers continues to be recognized with leading industry awards. GMCL will offer
more hybrid models in 2009 than any competitor and will introduce the Chevrolet Volt
extended range electric car in 2011.
GM is narrowing its brand and nameplate focus, which will continue to preserve and
strengthen GMCL‟s dealer presence in Canada by ensuring greater profitability and
volumes through fewer and more strategically located dealerships. GMCL will continue
to seek opportunities for retirements, private capital acquisitions and facilitated
consolidations consistent with the GM brand and product plans outlined in GM‟s Viability
Plan.
Building Upon Recent Investments
The Restructuring Plan builds upon significant actions taken since November 2005.
GMCL has invested more than $3 billion in Canada since 2005 to ensure its core
operations are highly competitive. These include the addition of both a new “state-ofthe-art” Paint Shop and flexible manufacturing capacity and capability in GMCL‟s
Oshawa Car Plant, a new planned 6-speed transmission flexible manufacturing system
to be constructed at the St. Catharines Glendale Powertrain Facility, and the completion
of the ongoing transformation of the Canadian Engineering Centre into a smaller but
higher added-value advanced environmental R&D centre. The Centre will support the
“electrification of the car” and work collaboratively with universities and suppliers
through the new General Motors of Canada Automotive Centre of Excellence to be
constructed at the University of Ontario and Institute of Technology (“UOIT”) and the
creation of an Automotive Innovation Network (“AIN”).
The Restructuring Plan also comprehends significant cost and capacity reductions
already accomplished or announced since November, 2005. GMCL previously
announced the closures of the west side of the St. Catharines Ontario Street Powertrain
Facility (originally planned to occur in 2008), the Oshawa Truck Plant (to occur in May
2009) and the Windsor Transmission Plant (to occur mid- 2010), but at this time no
further GMCL plant closures are contemplated. GMCL executives and the salaried
workforce are also making significant sacrifices through continuous workforce
contraction, wage cuts, benefit elimination/reductions in Canada.
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Transparency
As a privately-held company, GMCL recognizes the need to be as transparent as
possible in seeking public funds in Canada, balanced with the need to negotiate
agreements and protect confidential competitive information. GMCL has been in
detailed discussions with the Ontario and Canadian Governments. This has included
the sharing of comprehensive financial and competitive GM information under
appropriate confidentiality agreements. This high-level document summarizing the
GMCL Restructuring Plan is provided in addition to the comprehensive sharing of
confidential information with Governments. This document is intended to be read in
conjunction with the GM Viability Plan submitted to US Treasury. In particular, the GM
Viability Plan noted that GM remains optimistic that agreements with both the CAW and
the Canadian and Ontario Governments can be completed to enable GMCL to achieve
long-term viability but in the event agreements cannot be reached, GM will be required
to re-evaluate its future strategy for GMCL as the subsidiary would not be viable on a
stand-alone basis. (A link to the GM Viability Plan can be found in Appendix A.)
GMCL has also shared significant information with the CAW relative to the need to be
competitive with US Auto Transplants and the need to address the legacy cost burden.
We look forward to more structured talks that culminate in an agreement on necessary
changes and restructuring to ensure a viable and sustainable business in Canada. We
anticipate completing agreements before the end of March 2009.
II
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BACKGROUND
Historically, GMCL has been one of Canada‟s largest privately-held companies and has
a proud 100-year history as a major contributor to Canada‟s economy. The McLaughlin
Motor Car Company began to produce cars in Canada in 1908 pursuant to an
agreement with the Buick Motor Car Company. Shortly thereafter, it was purchased by
GM and evolved into General Motors of Canada Limited. By its 30th anniversary in
1938, GMCL had produced a million vehicles in Canada. In 1965, Canada and the US
signed the Canada-US Automotive Products Trade Agreement (Autopact). The
Autopact enabled GMCL to increase its production capacity dramatically. The North
American Free Trade Agreement (NAFTA) between the US, Canada and Mexico led to
wide-open automotive trade in North America. In 2007, GMCL reported revenue of
$31.7 billion.
GMCL is woven into the very fabric of Ontario and Canada. It has been the backbone
of Canadian manufacturing, a significant investor in research and development, and has
a long history of philanthropic support in communities across the country. The auto
industry today remains a driving engine of the Canadian economy, directly and indirectly
employing 1 in 7 Canadian workers (compared to 1 in 10 in the US), and is one of the
largest purchasers of steel, aluminum, iron, copper, plastics, rubber, and electronic and
computer chips.
Competition has never been more fierce in the automotive industry, with more arrivals
into the market dividing market share between more competitors. GM faces this
competitive challenge (in the context of the current extreme market slowdown) with
exceptionally high “legacy costs” related to the need to fund retiree pensions and
related health care benefits. GM‟s North American transplant competitors bear a fraction
of these costs due to demographic and contractual differences between the workforces.
GM also has labour provisions from prior collective bargaining agreements throughout
North America that are now untenable versus new competitors.
GM has made substantial progress in closing the gap with foreign competition in quality,
productivity and fuel efficiency (Please see Appendix F for more information about the
recognition of GMCL‟s manufacturing quality and productivity). We are committed to
further improvements in these and other areas critical to GM‟s long-term success. It is
also noteworthy that in other markets, such as China, Latin America and Russia, and
where GM does not have the burden of legacy costs, its operations have recently grown
profitably, rapidly and out-performed the competition.
On the environmental front, GMCL has always been a leading seller of small cars in
Canada. We are also now a leader in world-competitive hybrid and other “green”
technology vehicles. GMCL has never failed to meet a Canadian mandate or
commitment in the important areas of fuel efficiency and vehicle emissions. Please see
page 18-25 for more information on GM‟s environmental product and production plans.
Page 9 of 52
III THE CHALLENGE – MARKETS, CREDIT, STRUCTURE,
LEGACY, COSTS
The unprecedented decline in North American vehicle sales combined with significant
consumer shifts toward less profitable vehicles overtook GMCL‟s ongoing restructuring
efforts in 2008. The ability to generate cash flow from GMCL manufacturing operations
was significantly reduced and cash flow from sales of vehicles in Canada was similarly
reduced by the contraction of the Canadian market and a sharp devaluation of the
Canadian dollar. GMCL‟s inability to raise funds in the capital markets reduced its
options and impacts GMCL‟s ability to offer leasing options through GMAC.
Additionally, it is becoming increasingly difficult to service GMCL‟s legacy cost due to an
increasingly large retiree population, high health care cost, health care inflation and
poor pension asset returns stemming from a recessional market.
While GMCL welcomed and greatly appreciated the offer of emergency loans by the
Ontario and Federal governments on December 20, 2008, it subsequently secured
sufficient short term liquidity from other non-US sources within GM and initiated
substantial “self-help” cost savings. This enabled GMCL‟s management to focus upon
more fundamental restructuring needs. Time is limited however as GMCL projects it will
reach the minimum cash levels required to meet its obligations in the second quarter of
2009. GMCL is also focused upon meeting the Ontario and Canadian Governments‟
stated principles which include maintaining current proportional levels of GMCL
manufacturing in Canada and GMCL receiving proportional financial support to that
provided to GM by the US Government.
GMCL restructuring plans must be developed within the context and terms of GM‟s loan
agreements reached with the US Treasury (UST) at the end of December 2008. Given
GMCL‟s high level of integration into GM‟s overall North American strategy and
operations, GMCL must ensure it is a viable, profitable “stand alone” entity within GM‟s
integrated North American automotive business.
1) Reduced Revenues - Planning Conservatively
Market Outlook
Over the past few months, US auto sales – across all manufacturers, foreign and
domestic – have declined by approximately 40% compared to peak levels in 2005 and
are at their lowest per capita levels in half a century. GM sales are 22% behind yearago levels. These levels are especially relevant to GMCL which ships approximately
90% of its production to the US market.
As set out in GM‟s Viability Plan, the Company is planning for conservative industry
volumes. GM‟s US baseline industry sales projection is 10.5 million units in 2009 – a
dramatic decline from 16.5 million units in 2007, and even from the 13.5 million units
sold in 2008. GM projects the industry will recover moderately to 14.3 million units by
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2011 and 16 million units by 2012. This projection is significantly below the 17 million
unit industry levels averaged over the last nine years and considered to be a reasonably
conservative approach to gauging liquidity needs.
US Industry Outlook
- Downside
- Baseline
- Upside
Canadian Industry Outlook
- Downside
- Baseline
- Upside
2009
2010
2011
2012
2013
2014
9.5 M
10.5 M
12.0 M
11.5 M
12.5 M
14.3 M
12.8 M
14.3 M
15.8 M
14.5 M
16.0 M
17.5 M
14.9 M
16.4 M
17.9 M
15.3 M
16.8 M
18.3 M
1.320M 1.370M
1.460M 1.550M
1.555M 1.670M
1.450M
1.630M
1.750M
1.500M 1.530M 1.545M
1.690M 1.700M 1.710M
1.790M 1.800M 1.813M
GMCL‟s Canadian baseline industry sales projection has also been reduced by 90,000
units to 1.460 M units in 2009. This is significantly lower than the 2008 industry sales of
1.67M and the industry sales in 2007 of 1.69M. (Please refer to Appendix B for forwardlooking statements.)
Production Planning
GM‟s current production plans extend as far as 2014. GMCL combined annual future
production volume (including GMCL production in Oshawa and GM‟s production at
CAMI Automotive Inc. (“CAMI”)) is expected to range between 17-20% of combined
annual GM US/Canadian production between 2009 and 2014. (Note: CAMI Automotive
is a 50:50 GMCL-Suzuki Motor Corp. joint venture.)
Canadian planned volumes for 2009 include Oshawa pickup truck production which will
end in May 2009 (with the already announced closure of the Oshawa Truck plant), as
well as production of the current Chevrolet Impala on the Oshawa Car “Consolidated
Line.” The new Oshawa Car Flex line will ramp up production volumes between 2009
and 2013, as will CAMI production of the new Chevrolet Equinox and the GMC Terrain.
Production volumes are of course determined by consumer demand and economic
variables which cannot be fully predicted.
Going forward, GMCL‟s production capacity will focus on the Oshawa Car Flex
manufacturing line and GM‟s production at CAMI. It is expected this combined GM
production will continue to be amongst the largest of any automaker in Canada. GMCL
also notes that it does not have full control over the CAMI joint venture and therefore
future CAMI-based production remains subject to Suzuki‟s agreement to continue in that
joint venture.
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2) Unsustainable Costs Related to Active Employees and Retirees
To ensure its viability, GMCL must address significant employment legacy costs related
to retiree pensions and health care and ensure its labour wages and benefits are
competitive with US competitors. This will require agreements with the CAW as well as
the refinancing of GMCL‟s balance sheet including its pension and related health care
obligations.
As noted above, GM‟s loan agreement with the UST requires it to demonstrate cost
competitiveness with US transplant competitors. Subject to ratification and review by the
US Department of Labour, certain modifications to the GM/United Auto Workers
(“UAW”) labour agreement have been negotiated. To demonstrate its viability within the
GM enterprise, GMCL needs to also achieve competitive levels in Canada through
negotiation with the CAW. The Federal Minister of Industry has stated the Federal
Government‟s expectation that the CAW will agree to such competitive costs if the
Federal Government is to provide financial restructuring assistance. For its part, while
final agreements must be secured, the CAW has committed to achieving competitive
cost levels.
Pension Costs
In Ontario, GMCL sponsors registered defined benefit pension plans for most of its
workforce, with the GMCL Salaried Retirement Program established in 1947 and the
Hourly Pension Plan in 1950. Total membership in the GMCL pension plans currently
stands at 56,000, with an active to retiree/surviving spouse ratio now over 1:3. This
active to retiree/surviving spouse ratio is a significant financial burden in maintaining
pension and health care benefits at current levels. These ratios will increase
significantly toward a ratio of 1:5 following the closure of the Oshawa Truck and
Windsor Transmission plants and the additional salaried employment reductions in
Canada as part of the requirement to reduce GM‟s global salaried employment by
10,000.
In 1992, GMCL elected to have both plans designated as “qualifying plans” under the
Ontario Pension Benefit Act and Regulations. The “qualifying plan” provision enacted in
1992 allowed any employer whose pension plan had assets in excess of $500 million
(at market value) to declare the plans to be “qualifying plans”. Such plans must fund
current service costs as well as any special payments to amortize unfunded liabilities on
a “going concern” basis. In addition, this designation requires annual actuarial
valuations to be filed with the Ontario Government, and results in significantly higher
annual Pension Benefits Guarantee Fund (PBGF) assessments (for GMCL, at a cost of
$5 million plus tax per plan annually). Such designation has allowed GMCL to continue
to make significant investments of more than $10 billion in product and plant innovations
and upgrades over the last 15 years while meeting its pension funding obligations.
The Pension Plan for hourly-rated employees is a supplemental agreement attached to
the Master Agreement between GMCL and the CAW and is valid through September
2011. It is a “flat benefit” (fixed) defined benefit plan and as of November 30, 2007 (the
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latest filed valuation), had assets of $6.4 billion, liabilities of $7.9 billion and a “going
concern” funded status of 80.9%.
The Retirement Program for salaried employees was a “final average earnings” related
plan design. For post-2006 service, the Salaried Defined Benefit Plan is now a “career
average earnings” plan. There is also a “money purchase” component to the program
that was added in 2002 which allows members to make additional voluntary
contributions. Employees hired on or after January 1, 2007 and Quebec plan members
are now covered by a defined contribution plan. As of November 30, 2007 (the latest
filed valuation), the defined benefit plan had assets of $2.2 billion, liabilities of $2.3
billion and a going-concern funded status of 96.4%.
A history of the GMCL hourly and salaried plans shows many plan improvements with
good asset returns, steady ratios and continued compliance with their legislated and
regulated obligations. However, the cost of servicing GMCL‟s pension obligations to
required levels has now further increased with requirements to compensate for portfolio
valuations in response to recent sharp financial market declines and an increasingly
large retiree population.
While GMCL was in full compliance with its legal, “going concern” funding status as of
the last valuation date, the total obligations (or debt) represented by GMCL pensions as
they are currently structured are no longer sustainable. GMCL is working with the CAW
and the governments to explore options to address this challenge.
Health Care Benefit Liabilities – VEBA and Other Options
Similarly, liabilities and servicing costs for both active and retiree health care benefits
(including drug and dental insurance) must be addressed if GMCL is to demonstrate it
can be a competitive sustainable and viable enterprise within GM. The health care
burden has been addressed in the US by establishing, together with the UAW, a unionowned and directed Voluntary Employee Benefits Association (VEBA). GMCL is
working with the CAW and with the Federal Government to explore similar structures for
consideration in Canada as well.
Page 13 of 52
IV GMCL’S RESTRUCTURING PLAN – A VIABLE STAND-ALONE
ENTITY
To address the challenges set out above, GMCL‟s Restructuring Plan requires several
actions and agreements with GMCL stakeholders before the end of March 2009. All of
the key actions in the plan are required together to sustain GMCL‟s operations, reduce
its structural costs, ensure its competitiveness and refinance its balance sheet to
address unsustainable legacy costs. The Restructuring Plan would allow GMCL to
reduce and refinance these liabilities to ensure a viable, sustainable future business in
Canada.
This high-level document summarizing the GMCL Restructuring Plan is provided in
addition to the comprehensive sharing of financial and competitive information with the
Ontario and Federal Governments under appropriate non-disclosure agreements. This
document is intended to be read in conjunction with the GM Viability Plan submitted to
US Treasury. (A link to the GM Viability Plan can be found in Appendix A.)
While the form and amounts of specific restructuring actions remain under discussion
with GMCL‟s key stakeholders, the Restructuring Plan has three key broad
components:
1) Implement further “self help” cost reduction actions and adopt a new,
beneficial “Contract Manufacturer” business model;
2) Obtain the CAW’s agreement to achieve legacy cost reductions and align
active worker wages and benefits to benchmark levels; and
3) Complete financing agreements and related actions with the Ontario and
Federal Governments sufficient for GMCL to sustain its operations and
restructure its balance sheet in order to address legacy burdens and ensure
viability.
Together these key steps would enable GMCL to proceed with new product
investments, return to profitability and meet its obligations in Canada including
repayments to governments.
1) Implement further “Self Help” Cost Reduction Actions and Adopt a
New, Beneficial “Contract Manufacturer” Business Model
While GMCL must take further action to reduce costs, it should be recognized that
GMCL‟s structural costs have been decreasing significantly resulting from various
measures implemented since the initiation of GM‟s 2005 North American transformation
plan. As illustrated in the chart below, GM plans to reduce its global structural costs
significantly from over 35% of global revenues in 2005 towards a globally-competitive
rate in 2012 (although interrupted by the sudden decline in 2008 revenues). Achieving
these levels of competitiveness is painful and requires focus on all areas of structural
costs.
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GMNA Structural Cost Outlook
Annual Structural Cost
50
Structural Cost as % of Revenue
40%
45
40
35%
30.5%
30.8%
30.0%
35.6
35
30%
27.4%
33.8
30.4*
24.8%
24.0% 23.3%
25%
24.0
20%
30
26.3
25
25.0
24.0
24.0
24.0
20
SC as % of Revenue
Structural Cost ($ Billions)
39.0%
15%
2006 2007 2008 2009 2010 2011 2012 2013 2014
* 2008 data is preliminary
Note: 2006 and 2007 data vary from numbers reported in the December 2 submission due to
changes in GAAP classification of certain revenue and other income items previously reflected as
structural cost offsets in-line with prior management reporting
Shared sacrifices were accelerated in 2008 as GM took dramatic actions to conserve
cash in the face of the global credit crisis and US vehicle market collapse. In addition to
the significant capacity changes already announced by GMCL with the planned
shutdowns at the Windsor Transmission Plant and the Oshawa Truck Plant, GMCL took
steps to close or consolidate its Canadian Parts and Service Operations and regional
sales and service offices (A chronology of recent GMCL cost reduction changes can be
found in Appendix E).
GMCL estimates that as a result of these reductions, employee levels will decrease
from a combined hourly and salaried workforce of approximately 20,000 in 2005 to an
expected workforce of approximately 8,000 (based on market conditions) in mid- 2009
following the planned May 2009 closure of the Oshawa Truck Plant. GMCL‟s employee
levels will reduce further to approximately 7,000 after the closure of Windsor
Transmission in 2010. (These numbers exclude joint venture employment.)
At the same time, GMCL has maintained its industry-leading reputation for quality,
productivity and safety (for more information, please see Appendix F).
Page 15 of 52
Executive and Salaried Compensation and Benefit Cuts
GMCL Executives, salaried workers and retirees have made significant sacrifices
toward ensuring cost competitiveness in Canada. The reduced employment levels
noted above include GMCL‟s share of the recently announced salaried employee
reductions of 10,000 in 2009.
In addition to following the conditions concerning executive compensation set out in
GM‟s agreement with UST, GMCL executives will all be expected to reduce their salary
by 10% starting May 1, 2009. GMCL‟s other salaried workers have been asked to make
a sacrifice of a 3-7% reduction in salary beginning in May 2009, with these changes to
be reviewed in December, 2009.
In addition to the above-noted compensation reductions, recent benefit changes for
GMCL executives and active salaried employees have included adjustments to
compensation, insurance, retirement, health care, savings and other programs,
including the following:









Frozen salaries and bonus payments for salaried employees and executives;
Frozen pension plan and introduced new lower cost formula;
Severe reduction of salaried layoff plan and introduced new severance plan;
Modification of health care plans to provide higher co-pays and caps and
elimination of certain plans;
Introduction of monthly health care contributions;
Suspension of company contributions to stock savings program;
Suspension of all cash reimbursement plans such as tuition refund;
Reduction or elimination of group life insurance benefits; and
Elimination of post retirement health care for new hires.
Changes that affect salaried retirees have included the following:



Modification of health care plans to provide co-pays and caps and elimination of
certain plans;
Introduction of monthly health care contributions; and
Restriction of the ability to add new dependents to health care plans.
Adopt a New “Contract Manufacturer” Model and Maintain a “National Sales
Company” Business Model
A further step in the GMCL Restructuring Plan is to minimize risks by transitioning its
manufacturing business model in Canada to that of “Contract Manufacturer” – a change
that would enable GMCL to produce and sell its products to GM on a “value-added,
cost-plus” basis.
In recent years, GMCL‟s current manufacturing business model has exposed it to
sudden changes in the US market such as vehicle segment shifts, fuel prices etc.
Page 16 of 52
Volatile market shifts changes have left GMCL exposed and unable to cover fixed
operating costs including special charges such as vehicle engineering costs, R&D and
other administrative corporate overheads.
The Contract Manufacturer model is employed by GM in several other jurisdictions. It is
beneficial for Canadian operations as it allows GMCL to cover all standard
manufacturing costs (excluding legacy cost) such as stampings, powertrains etc. before
applying a standard markup. This model stabilizes GMCL‟s production business – now
more focused on cars and crossovers - and enhances its ability to repay its obligations,
including government support.
It should be noted that the Contract Manufacturer model is founded upon GMCL
attaining and maintaining a competitive wage, benefit and work rule structure. Cash
flow improvements related to this model have been modeled and reviewed with the
Ontario and Federal Governments.
2) Obtain the CAW’s Agreement to Achieve Legacy Cost Reductions
and Align Active Worker Wages and Benefits to Benchmark Levels
The second critical aspect of the GMCL Restructuring Plan is the need to achieve a
competitive CAW active and retiree wage and benefit structure. As noted above, the
UST has required GM and the UAW to achieve wage and benefit parity with the “US
transplants” and the Canadian Government has stated the same expectation for GMCL
and the CAW. This level of competitiveness, at reasonably anticipated exchange rates,
also underpins the benefits of the Contract Manufacturer model described above.
GM and its North American labour unions have negotiated agreements that are indeed
transformative, such as the US Retiree Health Care Trust (VEBA). Work continues on
these approaches in the U.S. and Canada. While the most recent UAW and CAW
collective agreements are different, they both aim to accomplish the goal of reducing
structural cost to competitive North American benchmark levels.
Towards this end, in 2008, GMCL and the CAW worked cooperatively to improve our
manufacturing cost competitiveness and align our Canadian footprint to reflect market
demand. In addition to our 2008 National Master Agreement, GMCL and the CAW
negotiated and implemented several plant-specific Competitive Operating Agreements
which have allowed our facilities to improve their cost structure via outsourcing of noncore operations and the implementation of further manufacturing flexibility.
Further work is now required with the CAW to reduce the very significant growth in the
cost of GMCL hourly retiree pensions and health care. While earned pension benefits
must be respected by law, there remains opportunity to reduce the growth of hourly
retiree pension and health care costs on a go-forward basis. These changes are critical
to ensuring GMCL‟s viability.
Page 17 of 52
Given the unprecedented US market contraction and the fierce competitive pressures in
the North American vehicle market, it is imperative that GMCL and the CAW continue to
work cooperatively on various options to further reduce GMCL‟s overall cost structure
and to conserve cash throughout the organization. The CAW has recently committed to
playing a constructive role in developing a long-term solution to these challenges.
3) Complete Financing Agreements and Related Actions with the
Ontario and Federal Governments Sufficient for GMCL to Sustain
its Operations and Restructure its Balance Sheet to Address
Legacy Burdens and Ensure Viability
The third essential step in the GMCL Restructuring Plan, is the long-term refinancing of
GMCL‟s balance sheet to address unsustainable legacy costs.
All efforts have been made to reasonably estimate the financing requirements to
complete GMCL‟s restructuring and stabilize and secure the pensions of GMCL salaried
and hourly retirees. These refinancing needs have been discussed with the Ontario and
Federal Governments and will be further reviewed as GMCL seeks to achieve a
financing agreement in March. GMCL is also awaiting further actuarial reports
concerning the funding status of its pension plans.
As a privately-held Canadian corporation, GMCL does not publicly release stand-alone
financial information. However GMCL recognizes the importance of accountability and
transparency and accordingly, we have shared extensive legal and financial information
with both Governments under appropriate non-disclosure agreements. This full
financial disclosure has enabled us to review the benefits of changes to our business
model, examine all opportunities to mitigate active and retiree costs, and determine
appropriate refinancing options and requirements to ensure GMCL‟s long term viability.
GMCL is seeking to reduce its current and future employment related liabilities through
a combination of further measures that would first reduce and then refinance these
obligations. This will involve shared sacrifices but ultimately enable GMCL to operate on
a profitable basis and meet all future obligations.
In its discussions with the Ontario and Federal Governments, GMCL has embraced the
Governments‟ stated Principles for support. Recognizing that GMCL is an important part
of GM‟s integrated North American business and marketplace, the Governments stated
their expectation that proportional levels of production in Canada, compared to that in
the US and Canada, be maintained. The Governments also offered to explore financial
assistance for GMCL in proportion to that support provided by the US Government to
GM.
Page 18 of 52
V INVESTMENTS IN GREEN TECHNOLOGY AND FLEXIBLE
MANUFACTURING
The transformative restructuring actions outlined above will build upon a series of
important recent investments and restructuring actions taken by GMCL between 2005
and 2009. These actions and investments provide us with an excellent base of new
state of the art facilities and excellent environmental technologies and products. This
critical foundation of work will enable us to sustain our leading position in Canadian
Automotive R&D as well as our important relationships with Canadian suppliers, dealers
and universities.
The Beacon Project Investments
Since 2005, through partnerships with the Federal and Ontario Governments, GMCL
has invested more than $3 billion in its Canadian facilities, including a series of key
investments made as part of the “Beacon Project”. Announced in 2005 and now
substantially complete, the $2.5 billion Beacon Project included transformative
investments related to manufacturing capabilities, automotive engineering and R&D in
Canada.
The Beacon Project included strategic investments in a number of GMCL‟s
manufacturing facilities. An industry-leading paint shop was installed at the Oshawa
Car Plant, setting an environmental benchmark among Canadian auto plants and
increasing the total production capacity of the Oshawa Car Plant. In addition, as a
result of the Beacon Project, state-of-the-art flexible manufacturing processes and
technologies were installed in the Oshawa Car Plant to enable the production of a
multitude of vehicle models and platforms on a single assembly line, allowing for quicker
adaptation to customer and vehicle market changes. The Beacon Project also included
investments in the St. Catharines Glendale Powertrain Facility to introduce the fuelefficient „Active Fuel Management‟ technology to Canadian engine production.
New vehicle program investments were also made as part of the Beacon Project with
the result that the Oshawa Car Plant was selected to build the 2006 Chevrolet Impala
and Monte Carlo mid-size cars and CAMI was selected to build the 2006 Pontiac
Torrent compact SUV.
Another part of the Beacon Project included strategic investments to facilitate the
creation of an Automotive Innovation Network (“AIN”), designed to accelerate
automotive innovation and commercializable R&D in Canada‟s automotive supply chain.
GM makes more automotive supply purchases in Canada than any other automotive
manufacturer. In 2007, GM purchased more than $14 billion in parts and services from
Canadian companies. By partnering with the governments to establish the AIN, and
with the new General Motors of Canada Automotive Centre of Excellence (to be
constructed) at the University of Ontario Institute of Technology as part of the network,
GMCL is taking important steps to create value for the Canadian auto industry through a
collaborative approach to technology development by creating a better link between
automotive companies, suppliers and universities.
Page 19 of 52
GMCL Production Capacity Changes: Oshawa Truck and Windsor Transmission
While GMCL has invested far more in Canadian operations than any other automotive
company since 2005, GMCL has also made very difficult but necessary changes to
align its capacity with market demand and reduce our structural costs toward
benchmark levels.
In May 2008, GMCL announced that its Windsor Transmission Plant would cease
production in 2010 as it completes its four-speed front-wheel drive transmission
mandate. The decision was made as a result of a shift in the market away from the
four-speed transmissions towards new, fuel-efficient six speed transmissions.
In addition, in 2008, the US vehicle market began to move sharply away from full-size
trucks and SUVs towards cars and crossovers. As a result, on June 3, 2008, GM
announced it had made the difficult decision to close four North American facilities
building full-size pick-up trucks and SUVs, including the Oshawa Truck Plant. The
original closure date for the Oshawa Truck Plant was scheduled for July 1, 2009 but
given current market forecasts, the Plant is expected to cease production in May of
2009.
It should be noted that no funding was received from governments in Canada for
investments at either the Windsor Transmission or the Oshawa Truck Plants. However,
by closing the Oshawa Truck Plant in 2009, GMCL anticipates that it will fail to achieve
certain targets in the Beacon Agreements which will trigger an early prepayment of a
portion of the support received from the Ontario and Federal Governments. In
exchange for forbearance of this anticipated early prepayment, GMCL and the Ontario
and Federal Governments entered into a Letter Agreement under which GMCL
committed to proceeding with the “Revised Pathways Project” which includes:
i)
ii)
iii)
investment in 6-speed front-wheel-drive transmission capacity in the St.
Catharines Glendale Powertrain Facility;
the first hybrid car to be manufactured in Canada at Oshawa Car; and
investments of $40 million within the next five years in advanced
environmental technology R&D at the Canadian Engineering Centre in
conjunction with Canadian suppliers and universities.
GMCL also expects to meet all other covenants and requirements of its 2005 Beacon
Project investment agreements.
GMCL Go Forward Plans
As noted, GMCL‟s Restructuring Plan includes necessary business model changes and
shared sacrifices but will also create a leaner, greener company and helping to shape
Page 20 of 52
the automobile technology of the future. The Plan also includes key new product
mandates at the Oshawa Car Plant, the St. Catharines Glendale Powertrain Facility,
and at CAMI. Investments made between 2005 and 2010 to support these product
mandates will be approximately $4 billion.
Between now and 2013, Oshawa Car Plant production would begin on the “flex line”
with the Chevrolet Camaro starting in early 2009, to be followed by two new front-wheeldrive mid-sized products. The first front-wheel drive car, initially expected to start
production in 2010 has now been delayed until late in 2011 as a necessary step to
conserve cash. A hybrid version of this front-wheel-drive car would still be expected to
proceed and would be the first hybrid car assembled in Canada. The timing of the start
of production of a second front-wheel-drive vehicle for the flex line has not yet been
confirmed. A further small-volume model that has been under consideration for the flex
line is still subject to further assessment.
Also at the Oshawa Car Plant, production of the Chevrolet Impala on the “consolidated
line” moved to two shifts of production effective February 9, 2009, and is expected to
remain in production, subject to market conditions, until 2013.
GMCL also plans to go forward with vehicle production at CAMI in Ingersoll as it
introduces two new vehicles in 2009 – the all-new Chevrolet Equinox in May (shown
below) and the GMC Terrain in August. Subject to market demand, these vehicles
would be expected to be produced until 2013. These new front wheel drive cars and
the new crossovers to be built at CAMI are expected to be leaders in their segments for
fuel efficiency.
2010 Chevrolet Equinox:
Page 21 of 52
GMCL Vehicle Production Timeline is shown below:
St. Catharines Glendale Powertrain Facility will supply engines and transmissions for
the new front wheel drive cars to be manufactured at Oshawa Car Plant. As a result of
the delay in the start of production of the first front-wheel-drive car at the Oshawa Car
Plant, the start of production of 6 speed front-wheel-drive transmissions will be delayed
until mid-2012.
GMCL Powertrain Production Timeline is shown below:
2008
Q1
J
F
Q2
M
A
M
2009
Q3
J
J
A
Q4
S
O
Park Avenue MCE2
N
Q1
D
J
F
Q2
M
A
M
2010
Q3
J
J
A
Q4
S
O
N
Q1
D J
F
Q2
M
A
M
2011
Q3
J
J A
Q4
S
O
N
Q1
D J
F
Q2
M
A
M
2012
Q3
J
J
A S
Q4
O
N
Q1
D
J F
Q2
M
A
M
2013
Q3
J
J
A S
Q4
O
N
Q1
D
J
F
Q2
M
A
M
2014
Q3
J
J
A
Q4
S
O
N
Q1
D
J
F
Q2
M
A
M
Q3
J
J
GMX381
Am 3/05
4 dr - SOP 7/04
B/O Grand
11/04 B/O
ST. CATHARINES ENGINE
Gen 4 V8
SOP x/14
SOP x/14
High Feature V6
ST. CATHARINES TRANSMISSION
SOP 4/12
6 Speed FWD Transmission
Gen 5 V8
Gen 5 V6
A
Q4
S
O
N
D
Page 22 of 52
GMCL Canadian Engineering Centre
Additionally, GMCL performs advanced automotive engineering at our Canadian
Engineering Centre located in Oshawa, Ontario (“CEC”) and, as noted earlier, is
completing a transition from vehicle program engineering to more advanced automotive
environmental R&D and innovation work, focused on fuel efficiency improvements and
future extended range electric vehicle technology. This work will engage selected
Canadian suppliers and universities and has the potential to increase the innovative and
environmental capacity of these organizations.
GMCL‟s advanced technology
investments represent almost 20% of GM‟s global investments in advanced technology
engineering in 2009. Given the importance and size of the supply chain in Canada,
GMCL also intends to continue sourcing competitive parts and services in Canada to
support its Canadian facilities and global operations.
GMCL has the largest vehicle engineering and R&D operation of any auto company in
Canada. GM has encouraged other auto manufacturers operating in Canada to make
progress towards increasing their overall levels of local R&D and sourcing from
Canadian suppliers in line with GMCL‟s benchmark.
“Green” Technology
GMCL recognizes that its Restructuring Plan must be transformative not only for itself
but also for the country. The Plan is founded on leadership in new environmental
technology and performance. GM‟s investments and transformational efforts are
perhaps nowhere better seen than in the leading range of advanced environmental
technologies and vehicles GMCL is now offering to consumers in Canada.
For the 2009 model year, GMCL is offering more hybrid models than any other
company in Canada and GM plans to offer 15 hybrid models in North America by 2012.
We have long been the largest seller of small cars in Canada. Going forward, 24 of the
next 26 new planned vehicle launches in North America will be fuel-efficient cars or
crossovers. GMCL has become a fuel efficiency leader with 21 models for sale in
Canada in the 2008 model year that achieve 7.0 Litres/100 km on the highway - more
small fuel-efficient models than any other automaker in Canada.
Technology and innovation capacity is vital to sustainability in the auto sector. For
example, GM has developed two hybrid systems: firstly, a highly affordable hybrid
system offered in the Saturn VUE and AURA and the Chevrolet Malibu Hybrid. It
delivers a 10-20% fuel economy gain and sets the global benchmark for an effective
low-cost hybrid system. Secondly, GM‟s award winning two-mode hybrid system, which
is utilized in full-size pick-up trucks, SUVs and compact crossovers. Our 2-mode hybrid
Chevy Tahoe and GMC Yukon have been recognized for their ability to offer a 50%
improvement in city fuel economy resulting in comparable city fuel economy with the 4
cylinder Toyota Camry.
Page 23 of 52
GM will also launch the ground-breaking Chevrolet Volt in 2010 with the Canadian
launch expected in 2011. The Volt is an extended-range electric vehicle that will
provide up to 65 km of electric-only driving on a single charge. GMCL is participating in
the development of electric vehicle technologies through R&D being undertaken at the
CEC in Oshawa and we are collaborating with Ontario Power Generation and other
utilities in preparing consumers for this new technology.
2011 Chevrolet Volt:
GMCL has also played a significant role in the development of emission-free fuel cell
vehicles. The Canadian Engineering Centre in Oshawa was selected to assemble the
world‟s largest fleet of hydrogen fuel-cell powered Chevrolet Equinoxes as part of GM‟s
Project Driveway.
“Green” Facilities – “Ontario Environmental Leader” Recognition
GMCL is also proud to be the first and only automotive manufacturer to be recognized
as an “Environmental Leader” under Ontario‟s Environmental Leader program. GMCL
has attained this status in recognition of its environmental record at GMCL‟s Ontario
facilities and for our commitment to achieve targets more stringent than environmental
compliance required by law. These commitments include voluntary reductions in air
emissions at assembly locations and voluntary reductions in waste production and
energy consumption at all Ontario facilities.
With the suite of new vehicles to begin production at the Oshawa Car Plant and CAMI,
GMCL‟s vehicle production profile is moving towards more fuel efficient offerings than
the current vehicles produced in GMCL‟s facilities. The Oshawa Truck Plant was the
first plant in Canada to produce a hybrid vehicle, with hybrid variants of the Chevrolet
Silverado and GMC Sierra pick-ups delivering a 50% improvement in city fuel economy.
Page 24 of 52
The new vehicles to be introduced at the Oshawa Car Plant are fuel-efficient, mid-size
front-wheel drive cars. The first of these vehicles will include a hybrid variant making the
Oshawa Car Plant the home of the first hybrid car to be manufactured in Canada.
At CAMI, smaller and more fuel-efficient crossovers will replace the current crossover
production. The new Chevrolet Equinox and GMC Terrain will start production at CAMI
in May and August 2009 respectively and will have a choice of a 4 cylinder (2.4L) or V6
(3.0L) engine compared with the current Equinox and Pontiac Torrent which are only
offered with V6 engines configurations (3.4L or 3.6L). This represents a shift to more
sophisticated powertrains that are all aluminum, and incorporate both direct injection
and variable valve technology. The new 3.0L V6 will be flex-fuel capable and both new
engines will be paired with 6 speed transmissions. The 4 cylinder Equinox is expected
to lead the segment in fuel economy with fuel consumption estimated to be 6.7 L/100
km highway.
Based on Transport Canada's 2009 estimate of 20,000km annual driving
distance and $1.00/L for regular gas, consumers who drive the 2.4L
Equinox will save an estimated 360 litres of fuel or $360 annually, versus
the 2008 Equinox.
GMCL‟s powertrain production also makes a contribution to fuel efficiency. St.
Catharines Glendale Powertrain Facility manufactures V6 and V8 engines. The V8
engines incorporate cylinder deactivation technology called “Active Fuel Management.”
Using cylinder deactivation, the engine switches seamlessly from 8 to 4 cylinders in lowdemand situations such as highway cruising but then switches back to 8 cylinders when
required for hill-climbing or other high-demand situations.
In addition, GMCL plans to introduce 6 speed front-wheel-drive transmissions in our St.
Catharines Glendale Powertrain Facility to serve the vehicle production in the Oshawa
Car Plant. Moving from 4 speed transmissions to 6 speed transmissions and the use of
cylinder deactivation, direct fuel injection, variable valve timing, turbo charging, and
cleaner, more powerful diesel engines are among the powertrain improvements that GM
Page 25 of 52
is utilizing in order to improve the fuel efficiency of its conventional internal combustion
engine offerings.
GMCL‟s objective is to become the fuel efficiency leader in each vehicle category where
we compete. Liquidity support will help us achieve this goal and help us maintain and
sustain a position of environmental leadership among automakers operating in Canada.
GM SUPPLIERS IN CANADA
VI
GM purchased over $14 billion from Canadian suppliers and service companies in
2007. This represents approximately half of the total industry‟s parts purchasing from
Canadian parts suppliers. Approximately $4 billion of these parts and services are
utilized at GMCL‟s facilities and the balance are utilized by GM in North America or
globally. As noted in the chart below, GM leads the industry with respect to Canadian
and US content for vehicles manufactured in North America.
GM Has Highest US/Canadian Content for Vehicles
Manufactured in North America
US/Canadian Content for Vehicles Manufactured in North America 1
77%
General Motors
71%
Ford
67%
Chrysler
Toyota
Detroit 3
Average
73%
66%
Mazda
63%
62%
Mercedes-Benz
61%
Mitsubishi
Honda
61%
Nissan
All Other
Average
55%
58%
55%
Suzuki
54%
Subaru
38%
Hyundai
BMW
29%
Volkswagen
13%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
12008
US/Canadian content from American Automobile Labeling Act except where only 2009 data is available, volume weighted by
Automotive News 2008 North American vehicle production
2US/Canadian content percentage reflects only vehicles produced in North America--for example, Mazda 6 for Mazda and GL, M, and R
Class for Mercedes
While it is too soon to accurately predict the impact of the Restructuring Plan on GM‟s
Canadian supply chain, GM intends to continue sourcing from competitive and
innovative Canadian suppliers. It should be noted that GM and its competitors utilize
many of the same suppliers. As a result, a failure of one or more automakers would
disrupt the supply chain. GM continues to encourage its competitors in Canada to
increase their use of Canadian suppliers as this diversifies supplier risk and helps these
excellent Canadian companies focus more resources on innovation which is critical to
future competitiveness.
Page 26 of 52
Additionally, GMCL applauds the measure included in the 2009 Federal Budget to
assist automotive parts manufacturers by improving their access to credit through
accounts receivable insurance offered by Export Development Canada.
The table below shows GM‟s Canadian parts purchases from 1991 through 2007. The
decline in purchases from 2005 to 2007 from Canadian suppliers can be attributed
largely to two factors: firstly, the appreciation of the Canadian dollar which negatively
affected the competitiveness of Canadian suppliers, and secondly, a decline in overall
GM production volumes.
GM PURCHASES FROM CANADIAN SUPPLIERS
$20
17.5
PURCHASES (CAN. $ Billions)
$18
16.2
18.0
16.2 16.4
15.0
$16
14.3
14.0
$14
$12
10.5
$10
8.1
8.0
6.7
$8
6.0
$6
3.2
4.4
4.4
4.4
$4
$2
$0
1991
1993
1995
1997
1999
2001
2003
2005
2007
YEAR
Information about the location of GM‟s suppliers all across Canada can be found in
Appendix G.
VII GMCL DEALERS IN CANADA
GMCL‟s dealerships and retailers employ approximately 33,000 Canadians in
communities all across Canada and, particularly in rural communities, are significant
local businesses contributing to the vitality of the community. Information about the
location of GMCL‟s dealerships and the associated employment can be found in
Appendix G.
Dealers and retailers are one of GMCL‟s most important stakeholders and are a critical
component of the Restructuring Plan. As the direct link to GMCL‟s vehicle customers,
the dealers and retailers are GMCL‟s “Ambassadors” with the customer. The GM
Page 27 of 52
Viability Plan and the GMCL Restructuring Plan contemplate conservative new vehicles
sales projections for the coming years which are necessary at a minimum for the plans
to succeed. GMCL applauds the initiative included in the 2009 Federal Budget to
establish a Secured Credit Facility to purchase term asset-backed securities backed by
loans and leases on vehicles and equipment. This Facility, while not yet established
and/or defined, may provide much-needed improved access to car loans and dealer
financing in Canada at a time when global credit sources are constrained.
GMCL distributes essentially similar vehicles to those in the US through its authorized
dealer network. Accordingly, Canadian dealers will be impacted by GMCL‟s focus on
the four core brands going forward (Chevrolet, Cadillac, Buick and GMC), consistent
with GM Viability Plan. Pontiac will assume a more focused role within the BuickPontiac-GMC channel.
For Hummer, several parties have expressed strong interest in purchasing the brand
and a decision is expected to be made by the end of the first quarter. If the sale of
Hummer cannot be completed, Hummer will operate until its current products are no
longer economically viable.
With respect to Saab, GM has conducted a strategic review of its global Saab business
and has offered it for sale. GM has developed a specific proposal that would have
Saab‟s operations effectively becoming an independent business entity effective
January 1, 2010. Please note that on February 20, 2009, Saab Automotive AB filed for
reorganization under a self-managed Swedish court process to create a fully
independent business entity that would be sustainable and suitable for investment. This
reorganization is a self-managed, Swedish legal process headed by an independent
administrator appointed by the court who will work closely with the Saab management
team.
With respect to Saturn, the Viability Plan states that GM plans to operate Saturn through
the end of the existing lifecycle of its products which is expected to be at the end of the
2011 model year in mid-2012. There are no new products currently planned for Saturn.
However, GM is open to the possibility that investors may present a plan to “spin-off” or
sell the Saturn Distribution Corporation. If such a sale does not occur, it is GM‟s plan to
phase out the Saturn brand. More information can be found on page 15 of the GM
Viability Plan.
In Canada, there are three dealer channels established as shown in the illustration
below. While significant efforts have been expended into combining the Buick, Pontiac
and GMC brands into a single network in the US, Canada‟s dealer organization with its
three distinct channels is already aligned as shown in the chart below. In addition, in
excess of 70% of the Canadian dealer network has invested millions in making
improvements to their dealership facilities to ensure compliance with the GMCL “Image
Program,” thus positioning them at the forefront of motor vehicle retailing and servicing
experience.
Page 28 of 52
GM Canada – Dealer Organization
3 Channels
48% of GM Dealerships
(431*)
(399*)
Cadillac
& Hummer feed into
select dealers in these
channels
(61)
Saab feeds into select
Saturn dealers
(18)
2% of GM Dealers
(129)
15% of GM Dealers
(28)
3% of GM Dealers
* includes 188 “4-line” dealers
(#) – number of dealers
GMCL is narrowing its brand and nameplate focus and will continue to preserve and
strengthen the dealer network model in Canada to ensure greater profitability and
volumes through fewer and more strategically located dealerships. Since the Canadian
network is already aligned as described above, the reduction in the number of Canadian
dealers will not follow an identical path to that in the US. In addition, GMCL has been
successfully focusing on reducing its dealer network in metropolitan centres over the
past few years. Currently, there are over 700 GMCL dealers in Canada, which is a
reduction of approximately 15% since 2000. GMCL plans to continue to work closely
with its Canadian dealers on further consolidation and rationalization and expects to
have 450-500 dealers in Canada by 2014. These efforts will be particularly focused on
achieving a viable network configuration in Canada‟s key urban markets. GMCL is not
targeting any specific dealer group to meet reduction targets, but rather looking at
opportunities for retirements, private capital acquisitions and facilitated consolidations.
Page 29 of 52
VIII RISKS
As with any business plan, there are many risks or uncontrollable factors that may
undermine the timing of delivery, or even the ultimate ability to accomplish that plan. As
we review and agree upon further changes to our business, we must identify a range of
risks that may impact our forward progress.
Some key risks in this regard include our ability to negotiate and implement changes
with the CAW on a timely basis to achieve North American benchmark cost levels and
the completion of financial support agreements with the Canadian and Ontario
Governments.
Going forward, risks remain including the impact of wide fluctuations in the Canadian
dollar and fuel and other commodity prices, relative government supports as set out in
the US Energy Bill section 136, and US government consumer incentives for advanced
technology vehicles. There is also the possibility of the implementation of
disharmonized regulations or trade agreements that disadvantage GM relative to its
competitors, which can also have an impact on our Restructuring Plan delivery and
GMCL‟s role within GM‟s operations. Most significant is the timing of recovery of the
overall North American vehicle demand.
Everyone at GM, including its Canadian management team, is well aware of the
consequences of a failure to implement our various restructuring plans. A failure by GM
would have a domino effect precipitating failures among component and logistic
suppliers, other domestic car manufacturers, raw material suppliers, technology and
service providers, dealers, retailers and their suppliers, as well as GM creditors and
financial institutions across Canada.
Regionally, the cost of failure in this instance would be enormous. It has been estimated
by the Canadian Manufacturing Council that 400,000 jobs in Ontario alone are
dependent on the auto sector and at risk. GMCL retirees would be gravely impacted and
there would be tremendous additional pressure on Ontario‟s broader pension
infrastructure as well as significant social insurance implications for governments at all
levels.
In addition, GMCL‟s operations have been vitally important to Canada‟s industrial and
knowledge base. No other company has traditionally purchased as many auto parts and
services and GMCL is currently ranked the number one company in Canadian research
partnership programs and through its Canadian Engineering Centre, GMCL is
undertaking leading-edge advanced environmental technology R&D projects in Canada.
IX
Page 30 of 52
CONCLUSION
While the challenges are great, GMCL has developed the Restructuring Plan that will
enable it to emerge from the current market crisis as a viable, sustainable company.
The Restructuring Plan requires several actions and agreements with GMCL
stakeholders that must be accomplished before the end of March 2009.
GMCL has shared and reviewed an exhaustive range of financial and competitive
information with the Ontario and Federal governments under appropriate non-disclosure
agreements, and information has also been shared with the CAW. All of the key actions
in the Restructuring Plan must be taken together to sustain GMCL‟s operations, reduce
its structural costs, ensure its competitiveness and refinance its balance sheet to
address unsustainable legacy costs. The Restructuring Plan would allow GMCL to
reduce and refinance these liabilities to ensure a viable, sustainable future business in
Canada. We are prepared to negotiate financing agreements required to complete this
Plan.
GMCL‟s Restructuring Plan is also transformative. The benefits of success will include
the launch of 5 new GM products, including the production of Canada‟s first hybrid cars,
that will maintain Canada‟s proportion of Canadian-US production over the plan period.
Working with Canadian universities and suppliers we will set new benchmarks in green
technology R&D. Through shared sacrifice, we will secure the pensions of thousands of
GM retirees and the jobs of thousands of active employees and dependent workers in
GM‟s supply chain. We will sustain GMCL‟s long and rich history in Canada and pay
back Canadian taxpayers.
GMCL appreciates its constructive partnerships with the Canadian Federal and Ontario
Governments. We look forward to continuing our discussions in this regard and to
finalizing the Restructuring Plan with the Canadian and Ontario Governments in March
2009.
X
Page 31 of 52
APPENDICES:
Appendix A –
Click here (or visit www.media.gm.com) to access the GM Viability Plan
submitted to US Treasury on February 17, 2009.
Page 32 of 52
Appendix B
This is the full excerpt of the Forward-Looking Statements that were included
with the press release that accompanied the GM Viability Plan submitted to US
Treasury on February 17, 2009 and applies hereto.
Forward-Looking Statements
In this press release and in related comments by our management, our use of the words
“expect,” “anticipate,” “ensure,” “promote,” “target,” “believe,” “improve,” “intend,”
“enable,” “continue,” “will,” “may,” “would,” “could,” “should,” “project,” “projected,”
“positioned” or similar expressions is intended to identify forward-looking statements
that represent our current judgment about possible future events. We believe these
judgments are reasonable, but these statements are not guarantees of any events or
financial results, and our actual results may differ materially due to a variety of important
factors. Among other items, such factors might include: our ability to comply with the
requirements of our credit agreement with the U.S. Treasury; the availability of funding
for future loans under that credit agreement; our ability to execute the restructuring
plans that we have disclosed, our ability to maintain adequate liquidity and financing
sources and an appropriate level of debt; and changes in general economic conditions,
market acceptance of our products; shortages of and price volatility for fuel; significant
changes in the competitive environment and the effect of competition on our markets,
including on our pricing policies, financing sources and an appropriate level of debt; and
changes in general economic conditions.
Our most recent reports on SEC Forms 10-K, 10-Q and 8-K provide information about
these and other factors, which may be revised or supplemented in future reports to the
SEC on those forms.
Page 33 of 52
Appendix C
Key Facts About GM’s Transformation for Long-term Success
Fact: GM is building compelling, high-quality cars and trucks for our customers

General Motors is the best-selling automaker in the U.S. with a share of 22.1% (2.8
million vehicles v. 2.1 million Toyota vehicles) and leads Toyota in 20 of the top 22
global markets (Toyota only leads in Japan and Australia markets).

GM is the largest seller of vehicles in Canada selling almost 360,000 vehicles in 2008,
approximately 20% of Canadian sales.

Chevrolet Malibu was up a solid 20.7% in December 2008 and 78.5% for the year in
Canada - leading GM‟s 35.8% gain for the year in the mid-size segment. Key
competition: the Toyota Camry was done 12.8% and Accord grew by only 2.4%.

Chevy has been the Number One selling US brand in two out of the last four years.
o Impala is the Number One selling domestic car. Between Impala and Malibu,
Chevy sold almost a half-million cars last year.

Chevy has won more than 260 media/industry awards worldwide since the 2006 model
year.

The Chevy Malibu was awarded the 2008 Car of the Year among international
automotive journalists. The second consecutive year a GM vehicle has won this
prestigious award (Saturn Aura won in 2007).

The Cadillac CTS was named Motor Trend‟s 2008 Car of the Year.

Prior to the current economic crisis, incentive spending was down and overall retail
transaction prices were up over an average of US$4,000 per vehicle for new products
such as the Chevrolet Malibu, Cadillac CTS, and family of crossover vehicles.

Buick Enclave, GMC Acadia, Chevrolet Traverse, and Saturn Outlook lead in quality,
fuel efficiency and sales among this growing crossover segment.

The Pontiac Vibe, AJAC's award winning Best New Small Car under $18,000, saw
strong gains in Canada up 34.2% in 2008.

GM unveiled the 2010 Chevrolet Equinox compact crossover, the 2010 Buick Allure/
LaCrosse sedan and the 2010 Cadillac SRX mid-size luxury crossover at the North
American International Auto Show (NAIAS).

GM recently announced plans to sell the Chevrolet Spark micro-car and the Chevrolet
Orlando seven-seat multi-purpose vehicle in the U.S. in 2011.
Page 34 of 52
Fact: GM is working with our business partners to restructure the business and reduce
costs...

The UAW suspended the Jobs Bank program, effective Feb. 2, and agreed to execute
another Special Attrition Program. These actions are important steps to improving GM‟s
viability.

Discussed plans to consolidate and reduce the number of GM dealers by approximately
400 per year through 2012 with GM dealers at the National Automotive Dealers
Association‟s annual meeting.

Announced plans to rationalize our number of brands and models, and strategic reviews
are well underway and making progress on these efforts.

Announced that GM will reduce salaried employment globally by approximately 10,000
people (approximately 3,400 in the U.S.) in 2009, and will temporarily reduce pay for a
majority of U.S. salaried employees.

Announced the restructuring of the global powertrain group to integrate its functional
activities into their respective global GM functions.
Page 35 of 52
Fact: GM is committed to reducing fuel consumption and emissions by bringing
advanced technology vehicles to market

Chevy Volt, GM‟s extended range electric vehicle, will go up to 40 miles before using
any gas and is scheduled for production in late 2010.

GM offers 19 vehicles that get 30 mpg or more on the highway…more than any other
automaker.

By mid-2009, GM will have 9 hybrid models in the market…more than any other
automaker.

GM‟s Canadian Engineering Centre in Oshawa, ON was selected to assemble the
world‟s largest fleet of hydrogen fuel-celled powered Chevrolet Equinoxes as part of
GM‟s Project Driveway

Chevy Traverse is the most fuel efficient 8 passenger crossover with EPA estimated 24
mpg highway.

Unveiled the Cadillac Converj concept extended range electric vehicle, which shows
how the Voltec propulsion system can be applied to other GM products in various
vehicle segments. The Converj won most of the top concept design awards at the 2009
NAIAS.

Announced that GM will be the first major automaker to establish a lithium-ion battery
pack manufacturing facility in the U.S., and that GM will build the world‟s largest
advanced battery testing facility in Michigan.

Announced that GM will work with Washington D.C. and other key cities to help prepare
infrastructure for plug-in electric vehicles such as the Chevy Volt.

GM has over 2 million bio-fuel capable (e85) vehicles on the US roads today, and offers
more bio-fuel capable vehicles than any other automaker.

Every Chevy SUV and pickup is available with an EPA estimated 20 MPG hwy or better.
Toyota and Ford can‟t say that.

Received “Green Car Vision” award from Green Car Journal (Chevy Volt) at the
Washington D.C. auto show.

Recognized by GreenerCars.org for having three vehicles (Pontiac G5 XFE, Chevy
Cobalt XFE and Aveo) with the highest “Green Scores” overall in the American Council
for an Energy-Efficient Economy‟s Green Book Online for Model Year 2009.
 First to bring a hybrid full-size SUV and pickup truck to market.

The Automobile Journalists Association of Canada (AJAC) recognized GM‟s Two-Mode
Hybrid technology with the inaugural Best New Green Technology Award for 2009.
Page 36 of 52
Fact: North American automotive companies build quality products...

During the past seven years, the General Motors Oshawa Plant has received four Gold
and two Silver Awards for plant quality in North America in the annual J.D. Power and
Associates Initial Quality Study

In 2008, GM‟s Oshawa Car Plant was recognized with the prestigious J.D. Power and
Associates “Founder‟s Award” in recognition of their commitment to quality excellence
and a solid track record of industry leading performance.

Silverado & Malibu -- #1 in J.D. Power Initial Quality in their segments

Received “Best Sport Sedan” award (Cadillac CTS) from PBS‟ Motorweek TV show for
the second straight year.

Received Overall Manufacturer honors in R.L. Polk‟s annual Automotive Loyalty Awards
competition for the ninth straight year. Also received awards for several Chevy vehicles
(Silverado, Suburban, Impala, Corvette).

Received “Family Car of the Year” award from motherproof.com/cars.com (Buick
Enclave) at the Washington, D.C. auto show.

GM‟s brands (Cadillac, Chevrolet, Buick, Pontiac), representing 80 percent of our total
volume, are ranked above industry average as measured by 2008 J.D. Power Initial
Quality.

GM and Ford tied for the leadership position in the 2008 J.D. Power Initial Quality Study
– 11 models ranked in the top three of their respective segments.

Chevrolet Malibu beats the imports…
o
o
o

Industry‟s best launch (J.D. Power) and a “Recommended Buy” from Consumer
Reports;
Segment award winner in the ultra-competitive midsize segment, beating out the
Toyota Camry, Honda Accord and Nissan Altima;
Malibu alone has won 30+ awards for product excellence
Since 2002 GM has earned 65 percent of all J.D. Power North/South America assembly
plant quality awards (more than all other manufacturers combined)
Page 37 of 52
Fact: GM autoworkers can compete with non-union import transplants…
As measured by the latest independent Harbour Report for Productivity:

GM vehicle assembly plants led in 11 of 20 North American assembly plant segments in
which it competes--the most of any manufacturer.

GM‟s Oshawa Car Plant has set industry benchmarks in the area of productivity, placing
within the top three plants across North America in each of the last six years.

GM has three of the top 10 assembly plants in North America.

GM has two of the top ten stamping plants in North America, based on the Stamping
Index.

GM has five of the top 10 engine plants in North America.
Fact: The current economic crisis affects all automakers, not just “Detroit”…

Toyota expects to lose $3.85 billion at the end of this fiscal year, the first loss since
1950. Since March, Toyota has reduced its temporary workforce in Japan from 9,000
workers to 3,000.

Nissan is cutting 20,000 jobs and predicts its first annual loss in nine years. CEO Carlos
Ghosn said the latest problems are industry wide and due to the global economic crisis.

Mercedes recently offered a buyout to its entire workforce in Alabama.

Hyundai‟s Alabama factory is still not up to full capacity.

In addition to company-wide buyout offers and substantial layoffs, Nissan is converting
its factory in Smyrna, TN to build commercial vehicles.

Toyota has been forced to shut its Texas truck plant because of few orders for the new
Tundra.

The Ssangyong Motor Co., the ailing Korean automaker, and its Chinese majority
shareholder, the SAIC Motor Corp , are seeking help from the South Korean government
to stave off a collapse of the company.

Hyundai Motor Co has cut shifts at its India plant cope with plunging demand.
Page 38 of 52
Fact: Other governments are providing financial support to the automotive industry
during this crisis...
Europe










Austria: Scrappage incentive of €1,500 for trade-in of 13-year-old vehicle for new
product meeting Euro 4 standard
France: €6 billion in “soft loans” for PSA & Renault with aid linked to commitment not to
relocate production jobs abroad; €500 million in loans to Renault Truck and other
automakers; €1 billion loan facility for PSA & Renault financing arms; scrappage
program (€1,000 incentive per vehicle)
Germany: €1.5 billion support package that includes loan guarantees and a scrappage
program (up to €2,500 per vehicle)
Italy: Scrappage incentive of €1,500 incentive for trade-in of vehicles over 10 years of
age
Portugal: €900 million in trade credit insurance, lines of credit for vehicle manufacturers
and suppliers, incentives to boost vehicle sales, and worker training; scrappage
incentive of €1,000 for 10-year old vehicles and €1,500 for 15-year old vehicles
Romania: One-year exemption from pollution tax for new vehicles; scrappage incentive
of €800 for 10-year old vehicles (maximum of 60,000 cars scrapped)
Russia: Tariffs on imported used cars raised to protect domestic auto producers
Spain: €800 million in federal aid in addition to state support for individual automakers;
scrappage incentive of interest-free loans up to €10,000 when trading-in 10-year old
vehicle for new low emission product
Sweden: $3.4 billion in state-backed loans and credit guarantees from the European
Investment Bank; funding for R&D
United Kingdom: $3.2 billion in loans to automakers and suppliers to develop “green
technologies”
North America


Canada: $4.0 billion in fully repayable loans offered to GM & Chrysler from federal and
Ontario governments; scrappage program ($300 incentive per vehicle)
United States: $13.4 billion in low interest loans to GM and $4 billion to Chrysler; GMAC
became a bank holding company and received a capital infusion of $6 billion and
Chrysler Financial received a $1.5 billion government loan
Latin America


Argentina: $890 million credit line to subsidize consumer purchases of 100,000 new
vehicles; additional credit line for purchase of new taxis, light commercial vehicles and
trucks
Brazil: $1.8 billion credit injection to promote auto retail financing; government of Sao
Paulo providing additional $1.8 billion in retail financing support; reduction in valueadded tax for new vehicles
Page 39 of 52
Asia Pacific





Australia: An additional AU$3.4 billion brings federal support for the auto industry to
AU$6.2 billion for 2009-2020 in the form of incentives for local investment and an R&D
incentive for “green technology”; new AU$2 billion fund to improve liquidity for auto
dealers
China: One-year reduction in excise taxes on small vehicles; $750 million scrappage
program targeting 3-wheeled and old trucks; $1.5 billion to automakers to upgrade
technology and develop alternative energy vehicles; $1.4 billion loan to Chery
Automobile Company
India: Reduction in excise tax applied to new vehicle purchases
Japan: Government providing wage support for companies to keep idle employees on
company payrolls
South Korea: Six-month reduction in special excise tax on new vehicles; government
support for worker training
Page 40 of 52
Appendix D
GMCL Company Profile:
Company Name: General Motors of Canada Limited (“GMCL”)
Location: 1908 Colonel Sam Drive, Oshawa, Ontario (Headquarters). Manufacturing
operations in Ontario in Oshawa, St. Catharines, Windsor, and Ingersoll (CAMI
Automotive – 50/50 Joint Venture with Suzuki Motor Corporation). Non-manufacturing
operations are located in Langley, BC, Calgary and Edmonton, AB, Pointe Claire, PQ,
and Woodstock, ON. The Canadian Engineering Centre is located in Oshawa and
linked with a cold-weather development centre in Kapuskasing, ON.
Business Activities: Automobile and auto component manufacturing, marketing and
distribution. GMCL employs 12,000 hourly and salaried workers1, making it one of the
largest private employers in Canada. GMCL is Canada‟s largest automotive exporter,
with over 85% of vehicle production being exported.
GMCL Revenue: GMCL‟s annual revenues and profits are consolidated with its parent,
GM, and reported globally.
GMCL Sales: GMCL sold over 350,000 vehicles in 2008 or approximately 22% of
Canadian sales.
GMCL Production: GMCL and CAMI produced over 570,000 vehicles in 2008.
GMCL Exports: GMCL and CAMI exported over $12.2 billion in vehicles and parts in
2008. Over 85% of vehicle production is exported.
Business Structure: GMCL is a Canadian corporation and a wholly-owned subsidiary
of General Motors Corporation (“GM” or “General Motors”). GMCL has business
dealings in manufacturing, vehicle sales, engineering & product planning, service parts
and aftermarket operations.
1
Employment number as at December 31, 2008. Please note that the employment quoted has not been
calculated using the terms agreed upon in previous partnership arrangements, such as the Beacon
Project.
Page 41 of 52
Appendix E
Chronology of Recent GMCL Restructuring Changes:
On April 28, 2008, GMCL announced the elimination of one shift of production at its fullsize pickup truck assembly plant in Oshawa, Ontario to take place effective September
2008. The decision was made as part of the parent company‟s corporate strategy to
bring North American truck production capacity more in line with market demand.
Several other US plants were also affected.
On May 12, 2008, GMCL announced that it would cease operation of the Windsor
Transmission Plant in the second quarter of 2010, when the current four-speed frontwheel drive transmission production mandate is completed. The decision was made as
a result of a shift in the market away from the four speed transmissions made at the
plant, towards new, fuel efficient six speed transmissions.
On May 15, 2008, GMCL reached a tentative agreement for a new 3 year collective
agreement with the CAW, which was ratified by members on May 16, 2008.
On June 3, 2008, GMCL announced that it would cease operation of the Oshawa Truck
Plant in 2009. The decision was made as part of the parent company‟s overall corporate
strategy to address the rapidly declining market for trucks and SUVs in the US market.
On July 15, 2008, General Motors announced further actions to bolster liquidity by $15
billion through operating and other actions as well as asset sales and financing
activities. This announcement referenced the necessary reductions in truck production
in North America and the need for additional reductions going forward.
On July 23, 2008, GMCL announced that Parts Distribution Centres in Edmonton,
Alberta would be offered for sale with the intention to lease the facilities back, thereby
raising needed cash to redeploy in the business. (A similar announcement about the
Parts Distribution Centre in Woodstock, Ontario was made on August 12, 2008). GMCL
had previously consolidated the activities of the Moncton Parts Distribution Centre into
the facility located in Pointe Claire, Quebec. Similarly, the operations of the Winnipeg,
Manitoba Parts Distribution Centre had been previously consolidated into the facility
located in Edmonton, Alberta.
On July 28, 2008, GMCL announced a Memorandum of Understanding with the CAW
that confirmed the Oshawa Truck Plant closure for July 1, 2009, the program of
supports for those employees affected by the closing and a shared vision for new car
production at Oshawa Car going forward.
On July 29, 2008, GMCL indicated that it would, like some other manufacturers,
suspend supporting lease rates on August 1, 2008.
Page 42 of 52
On August 7, 2008, GMCL held its Annual Beacon Review with Ontario and Federal
Government representatives to report on project progress to date.
On September 5, 2008, GMCL announced its intention to proceed with the Revised
Pathways Project via an exchange of letters between the Federal and Ontario
Governments and GMCL. The Revised Pathways Project includes investments in 6
speed front-wheel-drive transmission capacity at St. Catharines, the production of a
hybrid car at Oshawa Car, and $40 million in advanced environmental technology R&D
projects through GMCL‟s Canadian Engineering Centre by 2013.
On November 7, 2008, GM announced its 2008 third quarter results and additional cost
reductions and liquidity actions that in conjunction with previously announced actions
would deliver $20 billion in improved liquidity by the end of 2009. As part of this
announcement, Oshawa Car will reduce its production rate for the Chevrolet Impala
effective January 2009 placing 500 employees on temporary layoff.
On November 14, 2008, GMCL notified employees that the St. Catharines Ontario
Street Powertrain Facility would place approximately 400 employees on a temporary
one-week layoff staring November 17, 2008 and approximately 840 employees on a
temporary one-week layoff starting November 24, 2008.
On November 20, 2008, GMCL notified employees that the Oshawa Truck Plant would
cease production in May 2009 based on current market projections. Additionally,
downtime is scheduled at the Oshawa Truck plant during the weeks of January 5,
March 2, March 9 and March 16.
On December 2, 2008, GM delivered its Restructuring Plan for Long-Term Viability to
US Congress.
On December 2, 2008, GMCL announced that Windsor Transmission would undergo a
minor de-rate effective January 12, 2009. The de-rate would result in approximately
200 employees being placed on temporary lay-off on a rotating schedule. (This de-rate
did not ultimately take place.)
On December 4, 2008, GMCL notified employees that effective February 9, 2009, the
Oshawa Car Plant will run production for the Chevrolet Impala on two shifts rather than
three and that the rate of production would be reduced. This change will place 700
employees on temporary layoff. It was also announced that the start of production of
the first mid-sized car at Oshawa Car would be delayed from 2010 to late 2011.
On December 8, 2008, GMCL notified employees at the St. Catharines Ontario Street
Powertrain Facility that they would be on temporary layoff the weeks of December 15,
December 22, January 5 and January 12. GMCL also announced that a portion of
employees at the St. Catharines Glendale Powertrain Facility would be on temporary
layoff the weeks of December 15, December 22, January 5 and January 12.
Additionally, as a result of the delay in the start of production of the first mid-sized car at
Oshawa Car, the start of production of the 6 speed front-wheel-drive transmission would
be delayed until mid-2012.
Page 43 of 52
On December 12, 2008, GMCL notified employees that in addition to the previously
announced weeks of January 5 and 12, the Oshawa Car Plant would be closed the
weeks of January 19, 26, and February 2.
In early February 2009, GMCL announced that Windsor Transmission would take a
downweek starting February 16, 2009 resulting in the temporary layoff of 1,000
employees. Windsor Transmission will further reduce its daily output upon the
resumption of production on February 23, 2009 resulting in approximately 400-425
employees being placed on temporary layoff on a rotating schedule.
On February 10, 2009, GM announced it would reduce its global salaried employment
by 10,000. On the same day, it was announced a temporary pay reduction for salaried
executives and a majority of employees. This reduction will be effective May 1, 2009
through the end of 2009 when it will be reviewed.
On February 17, 2009, GM submitted the GM Viability Plan to US Treasury.
Page 44 of 52
Appendix F
Quality and Productivity Leadership:
During the past seven years, the General Motors Oshawa Plant has received four Gold
and two Silver Awards for plant quality in North America in the annual J.D. Power and
Associates Initial Quality Study and a string of segment leading vehicle awards.
In 2008, GM‟s Oshawa Car Plant was recognized with the prestigious J.D. Power and
Associates “Founder‟s Award” in recognition of their commitment to quality excellence
and a solid track record of industry leading performance. The Founder‟s Award is a
discretionary award presented by J.D. Power and Associates, recognizing individuals or
companies that demonstrate dedication, commitment and sustained improvement in
serving customers. In the 40-year history of J.D. Power and Associates, only 22
companies or individuals have previously received the award.
This Canadian plant is also setting industry benchmarks in the area of productivity,
placing within the top three plants across North America according to the Harbour &
Associates productivity report in each of the last six years.
Oshawa Car Plant’s Quality Track Record:
2008 Pontiac Grand Prix was recognized as the Highest Ranked Large Car in Initial
Quality
2007 Line #2 received the J.D. Power and Associates Silver Plant Quality Award,
North/South America
Pontiac Grand Prix was recognized as Highest Ranked Large Car in Initial
Quality
2006 Line # 2 received the J.D. Power and Associates Gold Award for the Best
Quality Assembly Plant in North and South America
Pontiac Grand Prix was recognized as the Highest Ranked Large Car in Initial
Quality
Chevrolet Monte Carlo was recognized with a J.D. Power APPEAL Award
2005 Line # 2 received the J.D. Power and Associates Gold Plant Quality Award,
North/South America
Line #1 received the J.D. Power and Associates Silver Plant Quality Award,
North/South America
Oshawa swept the Premium Midsize segment, with the Buick Century recognized
as “Best in Segment”
Buick LaCrosse/Allure was recognized as the “Best Launch Vehicle”
2004 Buick Century recognized as the Highest Ranked Premium Midsize Car in Initial
Quality
Page 45 of 52
2003 Line #1 received the J.D. Power and Associates Gold Plant Quality Award,
North/South America
2002 Line # 2 received the J.D. Power and Associates Gold Plant Quality Award,
North/South America
Buick Century recognized as the Best Premium Midsize Car in Initial Quality
Page 46 of 52
Appendix G – GM Suppliers and GMCL Dealers in Canada
Over 700 GM Dealers Employing 33,000 Canadians
PQ
City
ACTON VALE
ALMA
AMOS
AMQUI
BAIE-COMEAU
BERTHIERVILLE
BLAINVILLE
BONAVENTURE
BROSSARD
CAP-AUX-MEULES
CHANDLER
CHATEAUGUAY
CHIBOUGAMAU
CHICOUTIMI
COATICOOK
COWANSVILLE
DELSON
DESCHAILLONS
DOLBEAU-MISTASSINI
DONNACONNA
DRUMMONDVILLE
GASPE
GATINEAU
GRANBY
ILE-PERROT
JOLIETTE
JONQUIERE
LA GUADELOUPE
LA MALBAIE
LA SARRE
LA TUQUE
LAC MEGANTIC
LAC-ETCHEMIN
LACHENAIE
LAPRAIRIE
LAURIER-STATION
LAVAL
LEVIS
LOUISEVILLE
MACAMIC
MAGOG
MANIWAKI
MASCOUCHE
MATANE
MCMASTERVILLE
MONT-LAURIER
MONTMAGNY
MONTREAL
MONT-TREMBLANT
NAPIERVILLE
NEW RICHMOND
NICOLET
NOTRE-DAME-DU-LAC
PIEDMONT
PLESSISVILLE
QUEBEC
QUEBEC CITY
RAWDON
REPENTIGNY
RICHMOND
RIMOUSKI
RIVIERE-DU-LOUP
RIVIERE-ROUGE
ROBERVAL
ROUYN-NORANDA
SAINTE-JULIE
SAINTE-MARTINE
SAINTE-THERESE
SAINT-EUSTACHE
SAINT-HUBERT
SAINT-HYACINTHE
SAINT-JEAN-SUR-RICHELIEU
SAINT-JEROME
SAINT-LAURENT
SAINT-LEONARD
SENNETERRE
SEPT-ILES
SHAWINIGAN
SHERBROOKE
# Dealers # Employees
1
19
1
51
1
30
1
2
1
36
1
32
2
135
1
13
2
136
1
9
1
22
2
58
1
22
2
93
1
16
2
38
1
36
1
24
1
21
1
21
4
81
1
30
5
182
3
100
1
48
2
82
2
86
1
13
1
16
1
40
1
13
1
17
2
20
2
83
1
41
1
19
1
37
3
111
1
26
1
18
2
33
2
56
1
35
1
36
1
35
2
23
1
47
5
304
2
31
1
2
1
21
1
32
1
23
1
18
1
30
2
62
1
48
1
27
1
52
1
30
2
57
1
28
1
4
1
18
1
72
1
64
1
21
1
60
2
80
2
109
2
81
2
76
2
82
2
220
1
55
1
15
1
53
1
19
3
128
City
SOREL-TRACY
ST-ANSELME
STE-AGATHE-DES-MONTS
STE-ANNE-DE-BEAUPRE
STE-FOY
STE-MARIE
ST-FELICIEN
ST-GEORGES-EST
ST-LIN-LAURENTIDES
ST-RAYMOND
ST-REMI
THETFORD MINES
TROIS-PISTOLES
TROIS-RIVIERES
TROIS-RIVIERES-OUEST
VAL D'OR
VALLEE JONCTION
VALLEYFIELD
VARENNES
VAUDREUIL
VERDUN
VICTORIAVILLE
VILLE DE LAVAL
VILLE LASALLE
VILLE SAINT-LAURENT
WAKEFIELD
PQ Total
ON AGINCOURT
AJAX
ALLISTON
AMHERSTBURG
ARNPRIOR
AURORA
AYLMER
BANCROFT
BARRIE
BELLEVILLE
BLENHEIM
BLIND RIVER
BOLTON
BOWMANVILLE
BRACEBRIDGE
BRAMPTON
BRANTFORD
BROCKVILLE
BRUSSELS
BURLINGTON
CALEDONIA
CAMBRIDGE
CAMPBELLFORD
CARLETON PLACE
CASSELMAN
CHATHAM
COBOURG
COLBORNE
COLLINGWOOD
CORNWALL
COURTICE
DRESDEN
DRYDEN
DUNNVILLE
DURHAM
ELGIN
ELORA
ESPANOLA
ESSEX
ETOBICOKE
EXETER
FENELON FALLS
FERGUS
FONTHILL
FORT FRANCES
GANANOQUE
GEORGETOWN
GLOUCESTER
GODERICH
GREEN VALLEY
GRIMSBY
GUELPH
# Dealers # Employees
2
41
1
15
1
19
1
40
2
88
1
23
1
18
1
36
1
19
1
33
1
47
1
20
1
14
2
98
1
17
2
91
1
27
1
37
1
37
1
28
2
108
2
44
2
137
1
84
1
24
1
14
150
5219
1
58
2
90
2
41
2
43
1
48
2
105
1
11
1
29
2
193
3
99
1
18
1
26
1
25
1
47
1
45
4
236
2
86
1
44
1
10
4
211
1
24
2
110
1
26
1
44
1
36
2
67
2
65
1
11
1
34
2
76
1
74
1
8
1
45
1
10
1
7
1
8
1
34
1
27
2
43
1
67
1
61
1
4
1
13
1
32
1
24
1
51
1
28
1
74
1
29
1
36
2
76
2
123
City
HAGERSVILLE
HALIBURTON
HAMILTON
HANOVER
HARRISTON
HAWKESBURY
HEARST
HUNTSVILLE
INGERSOLL
KAPUSKASING
KEMPTVILLE
KENORA
KILLALOE
KINCARDINE
KINGSTON
KIRKLAND LAKE
KITCHENER
LEAMINGTON
LINDSAY
LISTOWEL
LONDON
LUCAN
MANOTICK
MARKHAM
MERLIN
MIDLAND
MILTON
MISSISSAUGA
MORRISBURG
NAPANEE
NEPEAN
NEW HAMBURG
NEW LISKEARD
NEWMARKET
NIAGARA FALLS
NORTH BAY
OAKVILLE
ORANGEVILLE
ORILLIA
ORLEANS
OSHAWA
OTTAWA
OWEN SOUND
PAISLEY
PARIS
PARRY SOUND
PEMBROKE
PERTH
PETERBOROUGH
PETROLIA
PICKERING
PORT COLBORNE
PORT HOPE
PORT PERRY
PRESCOTT
RENFREW
REXDALE
RICHMOND HILL
RODNEY
SARNIA
SAULT STE. MARIE
SCARBOROUGH
SEAFORTH
SIMCOE
SIOUX LOOKOUT
SMITHS FALLS
ST. CATHARINES
ST. MARYS
ST. THOMAS
STOUFFVILLE
STRATFORD
STRATHROY
STURGEON FALLS
SUDBURY
SUNDRIDGE
TECUMSEH
TERRACE BAY
THESSALON
THORNHILL
# Dealers
1
1
7
1
1
1
1
1
1
1
1
1
1
1
3
1
3
1
2
2
6
1
1
2
1
2
2
6
1
1
1
1
1
1
2
3
3
2
1
2
2
9
2
1
1
1
1
1
3
1
3
1
2
1
1
1
1
2
1
2
2
4
1
2
1
1
3
1
1
1
1
2
1
5
1
1
1
1
3
# Employees
14
32
293
16
14
47
15
25
43
51
30
29
12
24
144
15
178
20
82
73
408
8
12
88
9
92
65
418
33
19
67
54
44
55
83
115
132
87
56
165
204
711
55
16
22
19
62
30
123
24
133
24
69
21
32
28
77
125
13
92
76
336
6
64
18
32
159
23
65
15
39
64
15
175
19
13
22
10
336
THUNDER BAY
TILBURY
TILLSONBURG
TIMMINS
TORONTO
TRENTON
UNIONVILLE
UXBRIDGE
VAUGHAN
VIRGIL
WALKERTON
WALLACEBURG
WATERLOO
WAWA
WELLAND
WHITBY
WILLOWDALE
WINDSOR
WINGHAM
WOODBRIDGE
WOODSTOCK
ON Total
MB ALTONA
ARBORG
BEAUSEJOUR
BRANDON
CARBERRY
DAUPHIN
ELIE
ERICKSON
GIMLI
KILLARNEY
MELITA
NEEPAWA
PORTAGE LA PRAIRIE
ROBLIN
ROSENORT
SELKIRK
ST. ADOLPHE
STEINBACH
SWAN RIVER
THE PAS
THOMPSON
VIRDEN
WINKLER
WINNIPEG
MB Total
NB BATHURST
CAMPBELLTON
DALHOUSIE
EDMUNDSTON
FREDERICTON
GRAND FALLS
MIRAMICHI
MONCTON
REXTON
SAINT JOHN
SHEDIAC
ST. STEPHEN
SUSSEX
TRACADIE-SHEILA
WOODSTOCK
NB Total
SK
ASSINIBOIA
CARLYLE
ESTEVAN
ESTON
FORT QU'APPELLE
HUDSON BAY
HUMBOLDT
KINDERSLEY
KIPLING
LANGENBURG
LLOYDMINSTER
MAPLE CREEK
MEADOW LAKE
MELFORT
MELVILLE
MOOSE JAW
MOOSOMIN
NIPAWIN
2
3
2
2
11
1
1
1
1
1
1
1
2
1
2
3
1
5
1
2
1
260
1
1
1
2
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
2
9
34
2
1
1
2
3
2
2
3
1
3
1
1
1
1
2
26
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Page 47 of 52
104
66
47
87
640
64
49
74
53
50
31
28
144
16
104
245
46
272
11
70
62
11619.57
31
21
28
124
7
56
21
13
21
19
16
20
42
19
19
45
14
70
27
27
28
51
66
854
1638
46
27
26
55
114
46
41
209
18
163
4
24
24
40
43
880
34
25
47
15
23
6
39
20
15
14
56
14
27
19
32
68
17
21
NORTH BATTLEFORD
OUTLOOK
PRINCE ALBERT
REGINA
ROSETOWN
SASKATOON
SHAUNAVON
SHELLBROOK
STRASBOURG
SWIFT CURRENT
TISDALE
UNITY
WADENA
WATROUS
WEYBURN
YORKTON
SK Total
YT
WHITEHORSE
YT Total
PE
CHARLOTTETOWN
SUMMERSIDE
PE Total
BC
100 MILE HOUSE
ABBOTSFORD
BURNABY
CAMPBELL RIVER
CASTLEGAR
CHILLIWACK
COQUITLAM
COURTENAY
CRANBROOK
DAWSON CREEK
DUNCAN
FERNIE
FORT ST. JOHN
HOPE
HOUSTON
KAMLOOPS
KELOWNA
KIMBERLEY
LANGLEY
MERRITT
NANAIMO
NORTH VANCOUVER
PARKSVILLE
PENTICTON
PORT ALBERNI
PORT COQUITLAM
PORT HARDY
POWELL RIVER
PRINCE GEORGE
PRINCE RUPERT
QUESNEL
RICHMOND
SALMON ARM
SECHELT
SMITHERS
SQUAMISH
SURREY
TERRACE
TRAIL
VANCOUVER
VERNON
VICTORIA
WILLIAMS LAKE
BC Total
NF
BAY ROBERTS
BURIN
CARBONEAR
CHANNEL-PORT AUX BAS
CLARENVILLE
CORNER BROOK
GANDER
GOOSE BAY, LABRADOR
GRAND FALLS
LABRADOR CITY
ST JOHN'S
ST. ANTHONY
ST. JOHN'S
NF Total
AB
ACME
2
1
1
5
1
4
1
1
1
1
1
1
1
1
1
2
43
1
1
3
1
4
1
1
1
2
1
1
2
2
1
2
1
1
1
1
1
3
3
1
1
1
2
1
1
2
1
1
1
1
2
1
1
3
1
1
1
1
5
1
1
2
2
4
1
65
1
1
1
1
2
1
1
1
1
1
1
1
2
15
1
60
9
81
350
57
295
16
27
8
50
19
17
18
79
43
74
1693
30
30
86
34
120
29
88
165
60
30
173
158
67
64
80
65
15
77
25
29
141
146
29
78
31
183
70
40
97
32
56
22
19
130
15
19
225
36
25
28
31
299
37
25
306
87
169
31
3531
29
35
40
18
62
60
35
47
36
27
180
43
125
738
1448
AIRDRIE
ATHABASCA
BONNYVILLE
BROOKS
CALGARY
CAMROSE
CANMORE
CLARESHOLM
COLD LAKE
CORONATION
DEVON
DRAYTON VALLEY
DRUMHELLER
EDMONTON
EDSON
FAIRVIEW
FORT MACLEOD
FORT MCMURRAY
FORT SASKATCHEWAN
GRANDE PRAIRIE
HANNA
HARDISTY
HIGH LEVEL
HIGH PRAIRIE
HIGH RIVER
HINTON
INNISFAIL
LACOMBE
LEDUC
LETHBRIDGE
LLOYDMINSTER
MEDICINE HAT
OKOTOKS
OLDS
PEACE RIVER
PINCHER CREEK
PONOKA
RED DEER
REDWATER
RIMBEY
ROCKY MTN HOUSE
SHERWOOD PARK
SLAVE LAKE
SMOKY LAKE
SPRUCE GROVE
ST. ALBERT
ST. PAUL
STETTLER
STONY PLAIN
STRATHMORE
SUNDRE
TABER
THREE HILLS
VEGREVILLE
VERMILION
WAINWRIGHT
WESTLOCK
WETASKIWIN
WHITECOURT
AB Total
NS
AMHERST
ANTIGONISH
BRIDGEWATER
DARTMOUTH
DIGBY
GLACE BAY
HALIFAX
LIVERPOOL
MIDDLETON
NEW GLASGOW
NEW MINAS
SYDNEY
TRURO
WINDSOR
YARMOUTH
NS Total
NT
YELLOWKNIFE
NT Total
Grand Total
1
1
1
1
12
2
1
1
1
1
1
1
1
12
1
1
1
1
1
2
1
1
1
1
1
1
1
1
2
3
1
2
1
1
1
1
1
3
1
1
1
1
1
1
1
1
1
1
1
1
1
2
1
1
1
1
1
2
1
92
2
2
1
3
1
1
3
1
1
2
2
2
2
1
1
25
1
1
716
44
21
34
30
1153
56
21
12
28
6
30
46
31
919
38
20
21
162
32
144
23
13
21
230
29
15
31
31
76
173
45
187
46
34
50
24
19
149
23
29
56
97
31
11
72
81
40
32
57
29
24
38
14
26
23
23
63
75
31
6365
58
61
36
312
20
18
212
18
42
62
54
75
65
24
71
1127
28
28
32988
Page 48 of 52
GM buys $14.3B from 3000 CDN Suppliers Per Year
City
AIRDRIE
ALIX
CALGARY
CAMROSE
CANMORE
EDMONTON
GRANDE PRAIRIE
HANNA
INNISFAIL
KANANASKIS
LETHBRIDGE
NISKU
PEACE RIVER
RED DEER
SHERWOOD PARK
ST ALBERT
WHITECOURT
AB Total
BC
ABBOTSFORD
ALDERGROVE
BURNABY
CAMPBELL RIVER
COQUITLAM
COURTENAY
DELTA
DUNCAN
KAMLOOPS
KELOWNA
LANGLEY
MAPLE RIDGE
NANAIMO
NELSON
NEW WESTMINSTER
NORTH VANCOUVER
PENTICTON
PORT ALBERNI
PORT MOODY
PRINCE GEORGE
RICHMOND
SAANICHTON
SUN PEAKS
SURREY
TERRACE
VANCOUVER
VICTORIA
WHISTLER
BC Total
MB BRANDON
ELIE
MORDEN
OAK RIVER
PORTAGE LA PRAIRIE
WINNIPEG
MB Total
SK
ANTLER
CLIMAX
EATONIA
FORT QU'APPELLE
GOODSOIL
LLOYDMINSTER
MOOSE JAW
REGINA
SASKATOON
WEYBURN
SK Total
AB
# Suppliers
1
1
46
2
1
50
4
1
1
1
4
1
1
4
2
1
1
122
5
5
11
1
3
1
4
1
1
5
9
1
4
1
2
2
1
1
1
3
9
1
1
8
1
33
2
2
119
1
1
1
1
1
44
49
1
1
1
1
1
1
1
11
6
1
49
City
AMHERST
BAYSIDE
BRIDGEWATER
DARTMOUTH
EASTERN PASSAGE
ENFIELD
HALIFAX
INUVIK
MIDDLE SACKVILLE
NEW MINAS
NORTH SYDNEY
STELLARTON
SYDNEY
YELLOWKNIFE
NS Total
ON ACTON
AJAX
ALLANBURG
ALLISTON
AMHERSTBURG
ANCASTER
APPIN
ARISS
ARNPRIOR
ARTHUR
ASHBURN
AURORA
AYR
BARRIE
BEAMSVILLE
BEAVERTON
BEETON
BELLE RIVER
BELLEVILLE
BLACKSTOCK
BLENHEIM
BOLTON
BOWMANVILLE
BRACEBRIDGE
BRADFORD
BRAMPTON
BRANTFORD
BRESLAU
BROCKVILLE
BROOKLIN
BURLINGTON
CALEDON
CALEDON EAST
CAMBRIDGE
CAYUGA
CHATHAM
CLINTON
COBOURG
COCHRANE
COLLINGWOOD
COMBER
CONCORD
CORNWALL
CORUNNA
COTTAM
COURTICE
DORCHESTER
DUNDAS
EDEN
ELLIOT LAKE
NS
# Suppliers
1
1
1
9
1
1
18
1
1
1
1
1
1
1
39
2
16
3
3
2
3
1
1
1
1
1
12
4
11
4
1
1
1
5
2
1
6
14
1
5
55
11
1
3
1
70
1
1
33
1
4
1
2
1
5
1
7
3
1
1
7
2
4
1
1
City
ELORA
ERIN
ESSEX
ETOBICOKE
EXETER
FENELON FALLS
FENWICK
FERGUS
FLESHERTON
FONTHILL
FORT ERIE
GANANOQUE
GEORGETOWN
GLOUCESTER
GORE BAY
GORMLEY
GRAFTON
GRAND BEND
GRAND VALLEY
GREELY
GREEN VALLEY
GRIMSBY
GUELPH
HALEY STATION
HALIBURTON
HAMILTON
HANNON
HANOVER
HARROW
HASTINGS
HEARST
HOLLAND CENTRE
HORNBY
HUNTSVILLE
INGERSOLL
JORDAN STATION
KANATA
KAPUSKASING
KEMPTVILLE
KILLALOE
KING CITY
KINGSTON
KINGSVILLE
KITCHENER
LAKEFIELD
LANCASTER
LEAMINGTON
LINDSAY
LONDON
LONG SAULT
LUCKNOW
LYNDEN
MAIDSTONE
MANOTICK
MARKHAM
MCGREGOR
MERRICKVILLE
MIDLAND
MILTON
MISSISSAUGA
MOUNT ALBERT
NEPEAN
NEW DUNDEE
NEW HAMBURG
NEWMARKET
# Suppliers
2
1
4
2
1
1
1
1
1
1
1
4
4
1
1
3
1
1
1
1
1
5
37
2
2
49
1
1
2
1
1
1
2
2
9
2
5
17
1
1
1
10
5
31
1
1
5
1
58
1
1
1
4
1
62
1
1
1
16
312
1
7
1
1
13
NEWTONVILLE
NIAGARA FALLS
NIAGARA ON THE LAKE
NORTH BAY
NORTH YORK
OAKVILLE
ODESSA
OLDCASTLE
OMEMEE
ORANGEVILLE
ORILLIA
ORONO
OSHAWA
OTTAWA
OWEN SOUND
PALMERSTON
PARIS
PARRY SOUND
PENETANGUISHENE
PERTH
PETERBOROUGH
PETERSBURG
PETROLIA
PICKERING
PICTON
PLATTSVILLE
POINTE AUX ROCHES
PORT COLBORNE
PORT HOPE
PORT PERRY
PORT ROBINSON
PUSLINCH
RICHMOND
RICHMOND HILL
RIDGETOWN
RODNEY
RUTHVEN
SARNIA
SAULT STE MARIE
SCARBOROUGH
SCOTLAND
SHELBURNE
SIMCOE
SMITHS FALLS
SMITHVILLE
SOUTH WOODSLEE
ST CATHARINES
ST CLEMENTS
ST DAVIDS
ST GEORGE BRANT
ST MARYS
ST THOMAS
STEVENSVILLE
STITTSVILLE
STONEY CREEK
STOUFFVILLE
STRATFORD
STRATHROY
SUDBURY
TAVISTOCK
TECUMSEH
THAMESVILLE
THORNDALE
THORNHILL
THOROLD
TILBURY
TILLSONBURG
TIMMINS
Page 49 of 52
1
21
5
3
1
58
1
19
1
7
5
1
110
43
5
1
4
2
1
2
14
1
2
29
1
1
1
2
4
4
1
1
1
23
3
1
1
12
3
2
1
1
2
2
1
1
93
1
1
1
4
10
1
2
21
3
10
4
6
2
4
1
1
6
3
8
6
4
TORONTO
TOTTENHAM
TRENTON
UXBRIDGE
VARS
VAUGHAN
VAUGHN
VINELAND
WALLACEBURG
WATERDOWN
WATERFORD
WATERLOO
WELLAND
WELLANDPORT
WHITBY
WINDSOR
WINGHAM
WOODBRIDGE
WOODSTOCK
ON Total
PE
CHARLOTTETOWN
PE Total
PQ ANJOU
BAIE-D'URFE
BEAUPORT
BECANCOUR
BEDFORD
BELOEIL
BLAINVILLE
BOISBRIAND
BONAVENTURE
BON-CONSEIL
BOUCHERVILLE
BROMPTONVILLE
BROSSARD
CAMPBELL'S BAY
CANTON-DE-GRANBY
CAP-AUX-MEULES
CHELSEA
CHICOUTIMI
CONTRECOEUR
COTE SAINT-LUC
COTEAU-DU-LAC
COURCELLES
COWANSVILLE
DISRAELI
DOLLARD-DES-ORMEAUX
DORVAL
DRUMMONDVILLE
FLEURIMONT
GATINEAU
HUDSON
JOLIETTE
JONQUICRE
LAC-ETCHEMIN
LACHENAIE
LACHINE
LAC-MEGANTIC
LASALLE
LAVAL
LEVIS
L'ILE-PERROT
LONGUEUIL
LOURDES-DE-JOLIETTE
MAGOG
MASCOUCHE
MERCIER
MONT-JOLI
382
3
1
3
1
47
1
3
8
2
1
21
14
1
60
181
1
14
30
2404
2
2
3
1
2
1
2
1
1
7
1
1
5
1
3
1
2
2
1
2
1
1
1
1
1
1
2
6
2
1
3
1
1
1
1
2
11
1
3
13
1
2
3
1
1
1
1
1
MONTREAL
MONTREAL-EST
MONTREAL-NORD
MONT-ROYAL
MONT-TREMBLANT
NOTRE-DAME-DE-L'ILE-PERRO
NOTRE-DAME-DES-PRAIRIES
PIERREFONDS
POINTE-CLAIRE
PORTNEUF
QUEBEC
REPENTIGNY
RIVIERE-DU-LOUP
SAINT-ARMAND
SAINT-AUGUSTIN-DE-DESMAUR
SAINT-DAMIEN-DE-BUCKLAND
SAINTE-ANNE-DE-BELLEVUE
SAINTE-FOY
SAINTE-JULIE
SAINTE-MADELEINE
SAINTE-MARIE
SAINTE-THERESE
SAINT-EUSTACHE
SAINT-GEORGES
SAINT-HUBERT
SAINT-HYACINTHE
SAINT-JEAN-SUR-RICHELIEU
SAINT-JEROME
SAINT-LAMBERT
SAINT-LAURENT
SAINT-LEONARD
SAINT-PAMPHILE
SAINT-PAUL
SAINT-REMI-DE-TINGWICK
SAINT-TITE
SHERBROOKE
ST EUSTACHE MONTREAL
STANSTEAD
TERREBONNE
THETFORD MINES
UPTON
VAL-BELAIR
VANIER
VAUDREUIL-DORION
VERDUN
VILLE-DE-LAVAL
WESTMOUNT
PQ Total
YT
WHITEHORSE
YT Total
NB BALMORAL
BATHURST
CORNER BROOK
DIEPPE
FREDERICTON
FRENCH VILLAGE-YORK
LAKEVILLE-WESTMORLAND
MIRAMICHI
MONCTON
RIVERVIEW
SAINT JOHN
SHEDIAC
ST. JOHN'S
STEPHENVILLE
TRACADIE-SHEILA
TRAYTOWN
NB Total
Grand Total
59
1
1
2
1
1
1
1
4
2
11
2
1
1
1
1
2
4
1
1
2
4
3
1
4
2
1
6
1
27
1
1
1
1
1
5
1
1
1
1
1
1
1
3
1
1
2
275
1
1
1
1
2
3
6
1
1
1
22
3
2
1
5
1
1
1
52
3088
Page 50 of 52
Ontario Automotive Supplier Network - 2007
COLLINS & AIKMAN PLASTICS INC.
THOMSON FASTENERS INC.
TEXTRON CANADA LTD.
TECHFORM PRODUCTS LTD.
VENTRA GROUP INC
KERR INDUSTRIES LTD.
A G SIMPSON CO LTD.
PPG CANADA INC.
DELPHI CANADA
GLOBAL FASTENERS
RYDER TRUCK RENTAL CANADA
COSMA INTERNATIONAL INC
WOODBRIDGE FOAM
LEAR SEATING LTD.
JOHNSON CONTROLS LTD.
LITENS AUTOMOTIVE
VAN-ROB STAMPINGS INC.
TESMA INTERNATIONAL INC.
MAGNA INTERNATIONAL INC.
DECOMA INTERNATIONAL INC.
LEAR CORP CANADA LTD.
OFFSITE INDUSTRIES
ST.CATHARINES MACHINE PRODUCTS
GDX AUTOMOTIVE
ACIER NOVA LTEE
THYSSENKRUP BUDD CANADA INC.
TENNECO CANADA INC
LINEX MANUFACTURING INC
FLEX-N-GATE CANADA COMPANY
LEAR CORP CANADA LTD.
WET AUTOMOTIVE SYSTEMS LTD.
TITAN TOOL & DIE LTD.
KAUTEX CORP.
WINDSOR MACHINE & STAMPING LTD.
PAPP PLASTICS & DISTRIBUTING LTD.
RIVERVIEW STEEL CO LTD.
COOPER STANDARD AUTOMOTIVE CANADA
PROGRESSIVE MOULDED PRODUCTS LTD.
LINAMAR CORP.
COPPERWELD CANADA INC.
ARVINMERITOR CANADA
ALGOMA STEEL INC.
LONG MANUFACTURING LTD.
MERITOR SUSPENSION SYSTEMS CO INC.
DOFASCO INC.
STELCO INC.
SANDCO AUTOMOTIVE LTD
TIERCON INDUSTRIES INC.
NOMA COMPANY
STACKPOLE LTD.
BRIDGESTONE/FIRESTONE
GOODYEAR CANADA INC.
INTIER AUTOMOTIVE INC.
COURT VALVE CO INC.
3M CANADA CO.
ABC INTERIOR SYSTEMS INC.
VANNATTER GROUP INC.
RIMA MANUFACTURING
TDS AUTOMOTIVE CANADA INC.
December 2006
PPG CANADA INC.
HALLA CLIMATE
CONTROAL CANADA
THERM-O-DISC LTD.
Quebec Automotive Supplier Network – 2007
Réseau des fournisseurs québécois de l’industrie automobile - 2007
LORBEC
ALCAN
SOREL FORGE
FONDERIES POITRAS
ELASTO PROXY
RESSORTS LIBERTÉ
REHAU INC.
AM T DIECASTING
M AXTECH
IPL INC
ECI COM POSITES
M ETA-FOR INC
DAYCO
VELTRI M ETAL
ARROWHEAD INDUSTRIES
NORSK HYDRO
WATERVILLE TG
ACIER NOVA
ISE STAM PING
SOLECTRON
PROFOM INC
ALSTOM CANADA
CAM OPLAST
JYCO
GDX
KANCORP
INGERSOLL-RAND
THONA
OERLIKON CONTRAVES
GROUPE LAVERGNE RECYCLAGE
STYROCHEM CANADA
TORRINGTON
SPECTRA PREM IUM INDUSTRIES
DOM FER
DANA
G-SPEK
OPAL RT TECHNOLOGIES
M ETCOR
M ARK IV INTAKE SYSTEM S
DBM REFLEX
EDC
DATRAN
AM TREX
BRIDGESTONE FIRESTONE
RAUFOSS
TRIM AG
CANADIAN OVERHEAD HANDLING
ISAAC INSTRUM ENTS
PLOM BCO
COLLINS &AIKM AN
M ICRO M OULES
M ICHELIN AM ERIQUE
RONSCO
M ONTUPET
BASELL CANADA
GOODYEAR
EASTERN DIE CASTING
Updated January 8th, 2007
Mise à jour le 8 janvier, 2007
Page 51 of 52
APPENDIX H
GMCL Canadian Engineering Centre (“CEC”):
Since 2001, GMCL has operated the Canadian Engineering Centre (CEC) in Canada
and represents Canada‟s only significant, dedicated automotive engineering centre.
The CEC has engineered vehicles such as the Chevrolet Equinox and Pontiac Torrent
for the global marketplace. GMCL is also the Canadian leader in collaborative
university-based research supported by the National Science and Engineering
Research Council of Canada (“NSERC”) Program. Not only performing more of this
collaborative research than any other Canadian auto company but more than any other
company in Canada.
GM‟s global engineering organization also selected the Canadian Engineering Centre to
create 90 Chevrolet Equinox hydrogen fuel cell compact SUV vehicles. These vehicles
constitute the world‟s largest demonstration fleet of hydrogen fuel cell vehicles that is
known as “Project Driveway”. These hydrogen fuel cell powered vehicles have no smog
forming emissions and only emit clean water vapour.
Recognizing that a climate of innovation is essential to the long-term success of any
automotive company, through the Beacon Project, GMCL has developed a forward
looking Canadian “Automotive Innovation Network”. The Automotive Innovation
Network is designed to strengthen Canadian-based advanced technology engineering,
enhance automotive supplier engineering and expand relationships with Canadian
universities. The network would link key Canadian suppliers with some of Canada‟s
best academic minds for automotive research as well as enhanced government labs.
The Automotive Innovation Network thereby allows the Canadian industry to more
effectively compete in the hyper-competitive global automotive market.
In 2007, the CEC began to transform from primarily a vehicle engineering organization
into a centre that focused its activities on advanced technology innovation and applied
R&D activities. Advanced “Green” automotive technology development was targeted for
the CEC as this is a critical corporate priority. The development and commercialization
of these advanced “Green” technologies are essential in order to meet changing
consumer preferences as well as meeting the new stringent fuel economy regulations
being finalized. Transitioning the GMCL Canadian Engineering Centre towards higher
value-added innovation activities will continue into 2009.
Concerns about global climate change and worries about energy supply, cost and
security are driving this unparalleled level of transportation innovation. The CEC is
projected to conduct $40 million in advanced environmental technology innovation, over
the next five years, with numerous projects in vehicle electrification (such as advanced
battery related technologies and mechatronics technology) as well as in fuel efficiency
related technologies (such as hybrid vehicle systems and light weight materials). The
work would be conducted in Canada with the involvement of selected Canadian
automotive suppliers and universities, providing them with a unique opportunity to
Page 52 of 52
quickly develop a new range of market-relevant environmental automotive technologies,
skills, capabilities and capacity.
Addressing Key Auto Industry Challenges
GM today faces significant transformational challenges across its North American
business. Canadian competitive strengths, such as a low Canadian dollar, the public
health care system, competitive labour costs and reliable transportation and energy
infrastructure, no longer provide the competitive advantages that once helped to attract
strategic automotive investment to Canada. As a result, GMCL is being forced to
change and adapt very quickly.
While these challenges have become daunting, there are significant Canadian benefits
in maintaining the GMCL engineering advantage. However, the engineering activity in
Canada is threatened if support programs comparable to the US Department of Energy,
Energy Independence and Security Act (Section 136) are not available in Canada.
Without comparable Canadian supports, “Green” automotive advanced technology work
and “Green” vehicle manufacturing planned by GM in this country is threatened.

gmcl restructuring plan

Transcription

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