General Motors - Death of a Dinosaur

As with so much information that I read -my thoughts as to the announced closure of the GM plant in Oshawa are somewhat mixed. GM said it its announcement that they were shutting down the production line so that they will be better able to adjust to the new market conditions. The new conditions include increased interest in electric cars and a ever declining interest in sedans.

As former resident of the Oshawa area I am well aware of the extraordinary influence the plant had over the life of Oshawa and surrounding area. At times, the world seemed to revolve around the plant's routines. Parents working various shift scheduled appointments at what seemed to be random times to fit into their work schedules, summer holidays had to happen during shut down times and of course whenever there was a strike, the city slowed down.

The geography of parts of Oshawa was shaped by "the motors". Shift change was a major event and people learnt not to get caught up in the traffic anywhere near the plants at those times. As well, like every city that is dominated by a major employer, Oshawa's charities, adult and youths sports teams and every cultural edifice were enhanced by the generous donations of both the company's and the workers' participation. The future plans of a couple of generations of students revolved around the fact that one could always get a job at one of the plants. Countless university degrees were financed by summer jobs at the plant. Over the last decade or two, General Motors has gradually reduced the number of workers as robots and downsizing have taken their toll. Yesterday's announcement is, in fact the last of a rather long list of layoffs and plant closures. I am sure many if not all of the remaining workers are in a state of shock. There is nowhere else for them to go. It is understandable why they feel angry and betrayed.

How Oshawa will be able to thrive without GM remains unclear. Property values which were always driven by the needs of GM employees may decrease, some of the stores, restaurants and service industries may become unsustainable. Commercial property whose value was directly proportional to proximity to the plant may be near valueless. The Region of Durham that depended upon GM for tax income to fund hospitals, schools and other social services will need to scramble for other monies to manage their needed programs and services.

The good news, in terms of the environment, is that GM is going to invest monies in building electric cars - the bad news is that they are not going to do it in Canada. The writing was written clearly on any wall one wanted to look at. If the politicians (including the union leaders) had been honest with themselves and their constituents, they would have started ten years ago to make alternative plans. But instead Canada bailed out GM during the last recession while (apparently) getting no guarantees of continued employment. Successive federal and provincial governments chose not to invest in technology for the future or support the development of a high tech work force. Instead they bragged about a highly skilled work force - a work force that demanded high wages and that was skilled in one of the skills that other workers earning far less can do almost as well - manufacturing.

I am delighted that at least one car manufacturer is getting out of the business of building cars that consume a petroleum product - although I wish they would also get out of the business of building personal use pickup truck and SUVs. But I can't help but feel as if we have missed an opportunity to be part of the new wave of personal transportation. Thousands of Canadians will be displaced in some fashion by this announcement. There is nothing that can be done to ensure that their quality and standard of life can be maintained. The best that we can do is to attempt to catch up to the rest of the world. We need to make things that a sustainably focused consumer wants and needs.

I fear we are starting far too late.