TORONTO – Martinrea International Inc. claims to be forced to close the car factory when General Motors finishes production at Oshawa in the next year, in one of the most obvious evidence of the contraction effects of contractors.
Rob Wildeboer, executive chairman of Martinrea, says the company will have no choice but to end operations at Ajax Ont. plant and offer the relocation to 77 people working there because the site is completely dependent on GM Oshawa's assembly line.
The closure of the Oshawa plant and the nearly 3000 jobs lost will raise concerns about the worsening effects within the supply chain, with Unifor estimating that each job has seven jobs in the local economy.
Spare parts manufacturers and other suppliers, however, have worsened the overall impact of the closure due to diversification efforts following the global economic downturn that helped lead GM to bankruptcy.
Automobile manufacturer Linamar Corp. says it expects to have minimal to no impact since closure, as most GM parts are exported to assembly plants in the US.
Smaller businesses have also diversified, including the Tec Business Solutions package, which says it has a limited exposure to the automotive industry and yet has confidence in its long-term strength.