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UPDATE 1-GM warns Canadian union it could wind down striking SUV plant

From Reuters - October 11, 2017

DETROIT (Reuters) - General Motors Co on Wednesday warned leaders of Canadas Unifor labor union that it will start to wind down production of its popular Chevrolet Equinox sport utility vehicle at an Ontario factory unless workers there call off a month-long strike.

The strike has been fueled by union opposition to the North American Free Trade Agreement.

Unifor leader Jerry Dias told Reuters on Wednesday that GM officials said they would ramp up production of the vehicle at two plants in Mexico that build the Equinox and a similar model, the GMC Terrain if the walkout is not called off.

GM just told us today that they are going to ramp up production in Mexico, Unifor President Jerry Dias said by phone from Washington. They have declared war on Canada.

GM has plants in the United States that are under-utilized, but retooling them to build the Equinox would be expensive.

GM plans to study how quickly key suppliers to the Ontario Equinox plant could move their operations to accommodate a shift in the vehicles production, a person familiar with the discussions said on Wednesday.

GMs decision to build the Equinox and Terrain in Mexico is a major issue in the contract dispute between the automaker and the Canadian union.

Dias said he would not call off the strike.

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