According to the Globe & Mail, the Canadian department of Mexico-based Nemak will ship engine blocks to a General Motors affiliate in China from the Windsor plant. The deal is expected to create 80 jobs over the next four years, preserve 200 jobs, and bring the workforce at Nemak to just under 300 people.
A union member at the Windsor plant was delighted at the deal stating a drop in wages did not have to be considered because employees agreed to be flexible in their positions and work with management to solve issues. Wages range between $21 to $28 an hour.
The deal is welcoming news to an industry that saw a record number of recalls due to safety hazards in 2014. It is another positive step for the sector especially in Canada this week after Linamar Corp., an auto parts maker in Guelph announced a plan to create 1,200 jobs over the next decade. With the deal implemented, Nemak will become one of the few North American plants supplying the Chinese auto market and demonstrate that Canada can compete in a world economy.
Shanghai General Motors, the receiver-to-be of the engine blocks, is a joint venture between the Detroit automaker and SAIC Motor, which manufactures and sells Chevrolet, Buick and Cadillac brand vehicles in China. The Nemak deal will link the Windsor plant to the world’s fastest growing auto market which is expect to reach about 20 million units by the end of this year.
The new line at the Windsor plant, that was originally slated for closure in 2010, will begin producing the engine blocks for export early next year.
