Skilled Trades Association, CAW Local 199 St. Catharines (General Motors Unit) | ||||||
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| GM ready to meet challenges: Michael Grimaldi By KARENA WALTER St. Catharines Standard Staff October 21, 2005 The president of General Motors of Canada says he can't guarantee there won't be future job losses in St. Catharines, but is encouraged by the market's response to the company's new products. "There is no guarantee for any of us in terms of our current jobs or the operations that we're employed in, " Michael Grimaldi told The Standard in an interview this week when asked if St. Catharines was going to become another Flint, Michigan, because of downsizing. "But what we have to do is ensure that we are globally competitive." Grimaldi, who was in Niagara-on-the-Lake at the Ontario Economic Summit, said he's "cautiously optimistic" about the future of the automotive industry in Canada. The challenges are many and more intense than ever, he said, but GM believes it understands the challenges and what's required to address them. The company is determined to restore its competitiveness or strengthen leadership where it leads in the industry, he said. "What we have to do is make sure that GM is profitable and if we're profitable, then we can reinvest in the products, we can reinvest in the facilities and that's what I hope all of our employees understand." He said the company is improving its performance by transforming its vehicle development process, introducing new products and revitalizing older brands. St. Catharines is one of the company's key strategic operations and the engines and transmission components are key to its vehicle success, he said. In particular, GM has been been pleased by the public's response to the Chevrolet Impala, which has engines built in St. Catharines. But St. Catharines has felt the pain of GMs inability to grow its market share in North America. The company, now in a loss position, has had to decrease its manufacturing capacity over the years to put it in line with its market demand, Grimaldi said. Operations in St. Catharines have dropped from more than 9,000 people in the late 1980s to about 3,700 now. Earlier this month, employees ratified a contract that will see future job losses, the number as yet unknown, through retirements. And it's not known how a reduction of 25,000 GM jobs in the U.S. announced in the spring will ripple through and potentially impact GM of Canada in terms of vehicle operations and engine transmission operations, Grimaldi said. In the 1970s and '80s, GM had more than 40 percent of the market. Its now at 28 per cent in Canada and about 26 per cent in the United States. "What people have to understand," he said, "is that it's not like: 'Well, we need to reduce and take people out of the organization.' It's really driven by the marketplace and the marketplace has been very tough on General Motors over the last 10 years." "If General Motors is not capable of generating a profit, we all realize that all of our jobs are at risk" The challenge Grimaldi faces is battling foreign competition and an intensely competitive industry that wasn't there 20 years ago. The company also has to change public perception that foreign brands have higher quality -- a perception Grimaldi said most data refutes. Quality is not as much of a factor as it was in the past because of substantial improvements made by GM, he said, including long-term durability. He added the company has reached the point that in some areas it is industry-leading or as good as its competitors. It's important the company makes the right investments in the right product and invests in research and development for the future, he said. Grimaldi believes GM is on track in that regard. The company is investing in research and development through its Beacon Project which will create an Automotive Innovation Network, linking GM with its key automotive suppliers and eight universities. The project includes an Automotive Centre of Excellence at the University of Ontario Institute of Technology which will develop Canada's first accredited degrees in automotive engineering and design. Grimaldi, who began his career with GM in the U.S. in 1976 and took over its Canadian operations in 2002, doesn't believe young people should be discouraged from getting into the industry. The auto sector continues to be a growing, dynamic industry on a global basis, he said. GM needs new young talent to come into the company now more than ever The investments the company has made in St. Catharines, as well as Oshawa and other areas of Canada, demonstrate GMs commitment to its Canadian organization, Grimaldi said. Besides the mid-size Impala, there's already been good reception for the new Cobalt, HHR wagon and sport utility Equinox, he said. "The way you win in this industry is to have winning cars and trucks with great powertrains, great engines and transmissions," he said, "and our new products are being very well received in the market." | ||||||
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