Parts Supplier to Shut London Facility, Impacting 136 Jobs

In a recent setback for southwestern Ontario’s auto industry, a parts supplier has announced it will close its London plant by the end of this year, potentially leaving 136 workers without jobs.

Autoneum, based in Switzerland and operating globally, plans to consolidate operations at its Tillsonburg site, which is around 60 kilometres east of London.

A spokesperson mentioned that the choice was driven by a “decline in automotive industry volumes, combined with changes in customer production patterns,” which greatly affected the company’s operations in Canada.

“The consolidated Tillsonburg facility offers the strongest foundation, with increased volumes and improved efficiency, to remain competitive in the medium and long term,” said Ulrike Reich, head of communications for Autoneum, in a statement.

Luis Domingues, the local Unifor director for the London area, expressed that while workers and their families are heartbroken over the news, it wasn’t completely unexpected given the difficulties facing the auto sector due to U. S. tariffs.

“There’s no doubt in my mind that it’s the impact of tariffs here. The American companies and production facilities don’t want to deal with the nonsense out of Washington, so they’re just going to bring their stuff back into the States unfortunately,” he said.

“The [company’s statement] is just wording it nicely, but the nuances are that customers don’t want to fight with Washington, and our government has to do something about it.”

Both Domingues and Reich mentioned they are looking into possible opportunities for workers from London to transfer to Tillsonburg. The union aims to negotiate better severance packages and additional benefits beyond what’s required by law due to this closure.

Government action needed for auto sector support

The manufacturer operates near Huron and Clarke streets in northeast London, producing components for noise and heat protection. Its first Canadian location opened in Tillsonburg back in 1969.

The decline at this facility has been gradual over time following closures like GM’s Oakville plant operations ending; recently compounded by job losses at GM’s CAMI plant in Ingersoll where 1,200 workers were laid off.

“There has been a decline,” said Domingues. “When you lose CAMI when you lose Oakville-the manufacturing car facilities-the local economy including local auto parts suffer.”

This closure occurs as Ontario Premier Doug Ford continues criticizing the federal government regarding its new trade agreement with China-which Ford argues will negatively affect Ontario’s auto sector.

This past Friday Ottawa announced an agreement allowing up to 49,000 Chinese electric vehicles into Canada at a reduced tariff rate of 6.1 percent-while China lowers tariffs on Canadian canola and other agricultural products.

“Everyone got something except Ontario,” Ford remarked on Monday. “All we got is a massive threat of Chinese vehicles that are coming here that are gonna hurt every single auto sector worker.”

Domingues agrees with Ford’s assessment adding that both provincial and federal governments need stronger positions against U. S. actions. He calls on Ottawa for negotiations within CUSMA-the free trade agreement between Canada, Mexico-and U. S.-to allow American automakers like General Motors or Ford Motor back into Canadian manufacturing again.

“As long as our governments stand idly by and let this occur it’s not going be pretty here for Canadian auto producers or workers whether assembly plants or auto parts.”

Closure seen as ‘setback’ by local councillor

Councillor Peter Cuddy whose ward includes this London facility expressed his shock upon hearing about impending closure plans; stating he would contact federal MP Peter Fragiskatos along with MPP Rob Flack soon seeking solutions aimed at preserving jobs there.’

“My heart goes out to employees who’ve dedicated years towards working at these plants,” he added.”This represents genuine setback but ultimately on global scale-such issues lie beyond our control. Tariffs plus downturns affecting entire automotive industry consequently harm us locally.”

Cuddy remains optimistic about potential job opportunities available through transfers toward Tillsonburg site upcoming months ahead.

Autoneum reassured all closure-related activities would follow Employment Standards Act guidelines; statutory notice will be given according necessary per negotiated collective agreements alongside Ontario laws.

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