GM Canada Delivers Plan for a "Leaner and Greener"
Sustainable
Company
OSHAWA, ONTARIO -- (MARKET WIRE) -- 02/20/09 --
GM Canada today delivered an achievable, transformative
Restructuring Plan to the Canadian and Ontario Governments and
asked for their support to complete the Plan. Despite further North
American market deterioration, the Restructuring Plan will achieve
long-term viability and enable GM Canada 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
3. Complete Canadian and Ontario Government Support Agreements
for sufficient financing to sustain operations and restructure GM
Canada's balance sheet to address unsustainable legacy costs
Restructuring Plan Highlights:
- Maintains GM Canada's share of Canada / US production which is
expected to range between 17% and 20% between 2009 and 2014. GM
Canada remains one of Canada's largest automobile manufacturers
- 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 five new vehicles in Oshawa and
Ingersoll including new hybrid vehicle production, new flexible
transmission production in St. Catharines and significant advanced
environmental R&D for next generation electric car systems,
with suppliers and universities in Canada
- Adopts more conservative market assumptions
- Retains GM Canada customers, dealer network and new vehicle
line-up as the company's top strength and priority
- Contemplates no further GM Canada plant closures at this time,
reflecting restructuring actions already announced
- Enables GM Canada 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 GM Canada retirees and would establish a
"VEBA-like" structure for health care benefits
- Fully consistent with GM's loan conditions with the US
Department of Treasury and GM's Viability Plan as submitted to the
US Treasury on February 17, 2009
- Meets viability requirements by establishing GM Canada as a
sustainable, stand-alone enterprise.
To view the complete Restructuring Plan visit
www.gm.ca/ourcompany.
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.
General Motors of Canada (GMCL) is headquartered in Oshawa
Ontario and employs 12,000 people nationwide. GM of Canada
manufactures vehicles, vehicle powertrains, and markets the full
range of General Motors vehicles and related services through
approximately 700 dealerships and retailers across Canada.
Contacts: GM Canada Stew Low (905) 644-6786 or Cell: (416)
254-4224 GM Canada David Paterson (416) 294-5484 Website:
www.gm.ca