As of Tuesday, 2,000 jobs were lost at Vaughan, ON-based Progressive Moulded Products Ltd. that supplied GM with plastic instrument panels and consoles. The company operates 11 plants in Concord and Rexdale, all of which closed over the past two days. The 41-year-old supplier cited heavy debts and falling demand from main clients, chief among them a hurting General Motors.
Progressive owes more than half a billion dollars, for which it received court protection two weeks ago, as per a Toronto Star report. The court papers reveal Progressive accumulated debt to fund new projects while material costs soared and customers demanded lower prices. The high gas prices and downturn in economy that resulted in sales slumps for vehicles were the nail in the coffin for the plastic parts supplier.
Progressive also closed its two plants in Missouri and Texas, effectively eliminating around 300 jobs. Earlier, the company laid off 120 employees.
At the start of this week, Polywheels Manufacturing closed its Oakville, ON plant, which cost 250 jobs, and was also linked to GM’s slowing sales, particularly SUVs.
07/03, 10:16 AM
posted by:
F451
Now this is just damn sad…
07/03, 10:31 AM
posted by:
shaver
This is getting ugly and we’re just getting started.
07/03, 10:35 AM
posted by:
steviechapstick
SUCKS!
07/03, 10:51 AM
posted by:
trooper1
Just imagine how bad it will get 15 years from now when industry analysts predict a complete collapse of the domestic auto industry. By then our roads will be flooded with chinese and indian cars because thats all that most Americans will be able to afford. And with a failing economy, expect a rapid increase in crime, and the US is already well known worldwide as having a high rate of violent crimes. Its going to get ugly for everyone, except for the very wealthy protected in their gated communities and driving their armoured BMW’s
07/03, 11:13 AM
posted by:
johnnycanuck
Sure trooper1… and Soylent Green really is people.
07/03, 11:16 AM
posted by:
trooper1
soylent green is people, tasty too!
07/03, 11:50 AM
posted by:
ihustle
GM blows. They are far behind in quality for domestic brands. Them a chrysler will be bankrupt by 2011 mark my word. GMAC only has 15 billion left of capital, they haven’t posted a profit in the last 8 quarters. Ford has posted 3 billion dollar profits the last two. Fords Capital is 50 billion. For a larger company they really have to get there stuff together, Tahoe hybrid? are they insane? its average mpg is going to be 21mpg. There trucks are crap and yet again there behind Ford in truck sales.37k to be exact. They combine gmc and cheverolet. Thats sad. Flex fuel? yeah that works real well. FYI the new focus is the #1 domestic in sales volume. #1 crossover is the edge. F1-50 has never and will never been beating. The Fiesta is amazing, and debuts in 2010.Average mpg is 36 with the possibility of the 65mpg hybrid. At least Ford makes strides at bettering itself. GMAC seems like its own worst enemy.
07/03, 11:54 AM
posted by:
mayer_ray_nagin
Is soylent green made from the remains of fat people higher in cholesterol?
07/03, 12:05 PM
posted by:
trooper1
ihustle, I agree GM is in very bad shape, but Ford is in worse shape, and Ford cars are well known for being unreliable. We currently have 8 CrownVics in our fleet and they are the most unreliable of all our cars. Were holding on to them for one more year and after that we will never order anything from Ford ever again. Ford has a huge poor quality image problem. I know I would never spend my hard earned money on something built by Ford. I see Ford going under before GM.
07/03, 1:29 PM
posted by:
ihustle
I respect your opinion. It is virtually impossible for Ford to go under because its the only company that is privately owned. Ford sales more cars and obviously trucks then GMAC. While perception varies, it will come down to strictly sales. I went over capital in my previous post, definately check it out. Ford beats GMAC in every categorie for sales #’s so im quite puzzled, how you came up with your theory.
07/03, 3:02 PM
posted by:
monte
Ford does not beat GM in every category for sales. GM has sold the most cars in the world for 76 years.
And ford is not privately owned. It’s a publicly traded company. I could buy a piece right now if I wanted, I’d be stupid, but I could. And why do you keep writing GMAC, GMAC is an insurance and finacial company, they don’t make cars.
07/03, 5:54 PM
posted by:
Bimmer
Fusion is very reliable and it’s Ford.
07/04, 4:58 PM
posted by:
DialM4Speed
Most Americans can’t complain… They have themselves to blame! Now get back in your Turdota!