General Motors Company (NYSE: GM) will cut 625 jobs at its auto assembly plant in Ingersoll, Ontario by the end of July. The company plans to move some production work to Mexico, said Canada’s President of the largest auto workers union. The union has blamed the North American Free Trade Agreement and cheap Mexico’s cheaper labor costs for the job losses. “This came right out of left field,” president of the Unifor union, Jerry Dias said. “This nothing to do with Trump, but it has everything to do with NAFTA.”
POTUS Trump has vowed to renegotiate with NAFTA regarding Canada and Mexico. He had urged chief executives of the Big Three U.S. automakers earlier in the week to build more U.S. plants and invest less in Mexico.
University of Windsor professor, Tony Faria said that this is surprising given GM’s investment of C$800 million on upgrades to produce a new 2019 Equinox model. “As companies move their operations, somebody’s going to win within the Nafta region and somebody’s going to lose. And here’s a case where we lose,” he said. General Motors earlier this month had claimed that it would invest an additional $1 billion in U.S. factories this year and move some aspects of their production from Mexico to the United States.