London parts makers could feel the pinch by GM plant closures

Automotive parts producers in London, Ont. could see a hit to their bottom line after theannouncement that three General Motors (GM) assembly plants will be closing their doors by the end of 2019, including their operation in Oshawa.

The automotive giant made the announcement as part of an initiative to "improve their overall business performance."

• 'They are not closing our damn plant,' union says as GM reveals plan to shut down Oshawa facility

"The actions we are taking today continue our transformation to be highly agile, resilient and profitable, while giving us the flexibility to invest in the future," said MaryBarra, GM Chairman and CEO in a news release.

The reality is about 2,500 employees at the Oshawa facility could be looking for work in 2020, along with 3,100 other employees at theDetroit-HamtramckAssemblyin Detroit, Michigan andLordstownAssembly in Warren, Ohio.

Job casualtiescould extend beyond the assembly plantsas automotive parts manufacturers lose business as a result of theshut-downs.

• Ford says Ontario can't do anything to stop GM from shutting down Oshawa plant

London automotive parts maker London Automotive & Manufacturing Ltd. (LA&M) produces parts for all three GM plants. While they only ship a small number of parts to Oshawa, a significant portion of their business goes south of the border.

"The announced closures atDetriot-HamtramckandLordstownwill have more of an impact as we supply over 50 parts to those facilities for the Volt,Cruzeand Lacrosse, which account for roughly 30 per cent of our annual sales," said CraigHodgins, LA&M president in an email.

Hodginssaid if the closures go ahead as announced, it couldnegatively impact the company and its associates.

CBChas reached out to other parts makers in the London area.

During a 2017 labour dispute atGeneral Motors'CAMIAutomotive Inc. facility in Ingersoll, a number of local parts makers took measures to deal with demand shortages. Employees at Qualtech seating systems, Autoneum, and Martinrea were all affected by shift cancellationsand temporary layoffs.