Truemors
Magna closes Newmarket, Aurora plants; 850 jobs lost 
Auto parts giant Magna International announced today that they are closing two plants north of Toronto, eliminating 850 jobs by next June.
Canada's largest auto parts company is shutting down two Toronto-area plants, with the loss of 850 jobs, in the latest blow to the beleaguered Ontario manufacturing economy.
Magna International Inc. (TSX: MG.A) said today it will close two plants from its Decoma body parts division. About 850 workers in Aurora and Newmarket, two bedroom communities north of Toronto, will be affected by the shutdown of Decoma's Exterion unit by next June.
At Magna, the Detroit Three restructuring has squeezed the Exterion division and many of Magna's other businesses, producing losses at the 51-year-old company, which employs more than 80,000 people around the world and is controlled by businessman Frank Stronach.
"The difficult decision to close the facility came after a careful evaluation of the facility's financial status, future business and open capacity in other facilities," the global company said in a brief statement.
"Those factors, combined with the difficult economic conditions facing the North American auto industry due to reduced domestic production and customer demands, have made the Exterion operations no longer viable."
Ontario NDP Leader Howard Hampton said the Magna shutdown suggests that smaller, financially weaker auto parts companies in Ontario may be near collapse and will need provincial help to survive.
"Magna is huge, it's got the size, the financial and political connections to last through some very tough times," Hampton said. ``So when Magna starts closing down parts plants, that tells you that there are a lot of small manufacturers who are at the edge of the cliff and they're not going to be around much longer.
"It's time for the McGuinty government to stop blaming Ottawa and stop blaming Washington and come up with a strategy, otherwise we're going to see the loss of tens of thousands more jobs in the auto parts sector."
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at 05:37 on November 27th, 2008
I feel compelled to inject a little 'real world' bias into this article.
"which employs more than 80,000 people around the world and is controlled by businessman Frank Stronach"
80,000 employees is about right, ten years ago that was the number of jobs provided by Magna in European and North American counties. However, the last ten years have been hard on the automotive sector and Magna has quietly moved these non-union jobs to low cost regions, leaving only a skeleton of it's former self behind.
As for Frank Stronach, he hardly 'controls' Magna any longer, he's off betting on his horses. And who can blame him, at his age it's time to retire and enjoy a little of the money and the life he has left. He collects a fifty million dollar a year 'consultancy fee' or pension if you like.
"Magna shutdown suggests that smaller, financially weaker auto parts companies in Ontario may be near collapse" - NDP Leader Howard Hampton
Mr. Hampton obviously has not worked in Ontario's automotive industry, in truth he has no idea what he's talking about, but I suppose his comment was meant simply to please the masses. I've worked in the industry for nearly ten years and can say from experience that southern Ontario Magna facilities are so bloated with ineffectual management and family appointments that it's surprising they still operate today. Other, smaller outfits are much healthier and more dynamic, even some that are union shops! The last place we should invest public bailout money is a bloated automotive parts manufacturer. especially one that will spend most of it on dancing girls and slot machines!
"It's time for the McGuinty government to stop blaming Ottawa and stop blaming Washington and come up with a strategy". We know that the recent drop in oil prices has destroyed supply creation, so there is a sharp price increase coming to a pump near you, soon. If we truly want to keep manufacturing jobs in Ontario and we like the automotive sector and we don't want to sell our children for fuel, then why not take all the bailout money ear-marked for the big three and give it to Zenn Motors instead. You know, the little homegrown electric car maker. With that kind of money Zenn could go into true mass production and we, the public, would have viable electric cars in time to save us from the rising cost of fuel and manufacturing jobs to pay for them. Henry Ford got it so right!
I believe we have one of three choices: do nothing, pay for dancing girls, or invest in new tech jobs. What do you believe?