In a recent setback for southwestern Ontario’s auto industry, a parts supplier has announced it will close its London facility by the end of this year, potentially leaving 136 workers without jobs.
Autoneum, based in Switzerland and operating globally, stated it will move operations to its Tillsonburg site, which is about 60 kilometres east of London.
A company spokesperson mentioned that the decision was prompted by a “decline in automotive industry volumes, combined with changes in customer production patterns,” which greatly affected the company’s Canadian operations.
“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, director of Unifor in the London area, expressed that while workers and their families are heartbroken, this news wasn’t completely unexpected given the difficulties faced by the auto sector amid 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 indicated that they are looking into potential opportunities for London workers to transfer to Tillsonburg. The union plans to negotiate for better severance packages and additional benefits following the closure.
Government intervention needed to save auto sector
The manufacturer located near Huron and Clarke streets in northeast London specializes in components for noise and heat protection. Its first Canadian location in Tillsonburg has been operating since 1969.
The decline at this facility has been ongoing over recent years after operations ended at GM’s Oakville site; more recently followed by job losses due to Bright Drop electric vehicle cutbacks at GM’s CAMI plant in Ingersoll where 1,200 employees lost their positions,” Domingues noted.
“There has been a decline,” said Domingues. “When you lose CAMI, when you lose Oakville, the manufacturing car facilities affect not just those plants but also local auto parts suppliers.”
This closure comes as Ontario Premier Doug Ford criticizes the federal government regarding its new trade agreement with China that Ford claims will negatively impact Ontario’s auto industry.
This past Friday Ottawa announced a deal allowing up to 49,000 Chinese electric vehicles at significantly reduced tariffs of 6.1 percent in exchange for China lowering tariffs on Canadian canola and other agricultural products.
“Everyone got something except Ontario,” Ford stated 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 concurs stating both provincial and federal governments need to confront issues arising from U. S policies. He urges Ottawa to secure an agreement within CUSMA-the free trade pact between Canada, Mexico, and America-that allows American automakers like General Motors, Ford Motor Company, and Stellantisto manufacture again on Canadian soil.
“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 parts makers.”
Plant closure a ‘setback’ for London councillor says
Councillor Peter Cuddy whose ward includes London’s facility expressed shock upon learning about its impending shutdown. He intends reaching out this week federal MP Peter Fragiskatos along with MPP Rob Flack exploring ways save both jobs plant.
“My heart goes out those employees have dedicated many years livelihood working these plants,” he shared.“This really setback however global scale issues beyond control. Tariffs downturn automobile industry impact us locally.”
Cuddy remains hopeful local workers find employment nearby Tillsonburg.
Autoneum confirmed all closure activities comply Employment Standards Act statutory notice provided required accordance negotiated collective agreement Ontario law.
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