Will GM flee Canada?

Some folks think it's possible:

Earlier Tuesday, Canadian Auto Workers union representative Chris Buckley said he was concerned General Motors -- teetering on financial ruin until the U. S. government agreed to a bailout in December -- would pull out of Ontario and preserve its operations south of the border.

But both GM and Chrysler have yet to agree to accept similar bailout loans from Canada and Ontario worth $4 billion, raising fears jobs north of the border are in jeopardy.

From the St. Catharines Standard. Could this happen? I suppose if they had to close some plants, they'd rather keep the US ones open because that's the government that can offer them the most. So maybe they're not accepting the Canadian bailout offers because they don't want to be obligated to keep plants open here. On the other hand, others think that this is simply the CAW preparing their workers for the inevitable concessions that they'll have to make:

But Richard Cooper, vice-president of J.D. Power in Toronto, called fears of GM closing its operations here "an extreme view."

"We are trying to speculate here in Canada, but we are part of a North American situation and it would be extreme to shut down Canadian operations completely, they are so intertwined it is difficult to do."

The CAW will sit down with the Detroit Three automakers to bargain concessions as part of the manufacturers' getting a government loan package.

"He is pitching a dire scenario for his members. He is laying the groundwork to say this is serious. . . . They are opening a bargaining position for themselves internally. I think everyone is getting a healthy dose of realism in Canada."

It is unlikely GM will shut its operations here as they are among the industry's top performers, and are launching new vehicles. The Harbour Report, a quality and productivity survey has placed three Canadian GM plants among the top five of the best plants in North America for all automakers.

In addition Cami, which finished fifth in the Harbour survey, is launching two new vehicles, the redesigned Equinox in the spring and the new Terrain CUV this summer.

The Oshawa plants, which finished second and third, are launching the new Camaro this spring.

But the industry is changing so quickly, and is in such dire straits, all options are on the table for the future of the industry, said Dan LeFrank, acting CAW plant chairperson for Cami.

"We are being clear with our members we have to be part of the solution," said LeFrank. "We are not immune from anything. When GM, Ford and Chrysler talk strategy nothing is out of the realm of the possible."

From the London Free Press. Time will tell which version is more accurate, I suppose. One thing that does bother me, though, is the choice of models for the Canadian plants. The Camaro? That sounds like a great idea... for 1966. When you're (a) in a recession and (b) facing serious increases in gas prices in the near future, an expensive gas guzzler does not seem to be the sort of thing you want to depend on for your job. And presumably GM knows that. No, I wouldn't rule out Chris Buckley's scenario just yet.