Autoparts manufacturer receives $5 milllion for upgrade as workers get layoff notices
The federal and provincial governments are providing $5 million to help a local automotive parts facility diversify products for the global marketplace, but workers there will be laid off in the short term.
The challenges of adapting to a changing manufacturing landscape came into focus as workers at Sodecia London, a hot-stamping facility, were given the notices shortly after the announcement was made.
While workers say the funding is welcome, and they believe the future is bright, they also know that autopart manufacturing is a fickle business.
Employees were told they were being laid off for three weeks, in part because Tesla is undergoing some retrofitting.
The plant makes parts for both Tesla and the GM Cami plant, which is idled by a strike.
The federal government believes the benefits of investing in the plant and its product will outweigh the risks.
"This new facility will inject $25 million each year into sourcing materials from business througout southern Ontario,” said Peter Fragiskatos, London North Centre MP
Sodecia’s processes will lower fuel consumption and improve vehicle safety for Canadians, the provincial government says.