Phony Car War With China Gets Real In Canada

Picture courtesy UNIFOR

The United State’s phony “car war” with China may be more political rhetoric than business reality, but Canadian labor union Unifor (successor to the Canadian Auto Workers) seems prepared to switch to live ammunition. Reuters reports that Unifor is threatening a strike on Johnson Controls Inc’s plant in Whitby, Ontario in hopes shutting down the GM Oshawa plant it supplies. Unifor thinks that by hurting GM at Oshawa it will leverage pressure on JCI to change its plans to shut down the Whitby interior plant. Unfortunately a peaceful resolution is unlikely. As Reuters reported last month, JCI is transferring its entire interior supply business to a joint venture with a subsidy of GM’s main Chinese partner SAIC. GM will not fight an SAIC-related merger on behalf of Unifor, and as a result Canada can look to Australia for hints at the future of its auto industry. [Continue Reading]