Union 'didn't see it coming' as Magna-owned auto parts plant closes in London

A London auto parts plant that supplies seat assemblies for CAMI Ingersoll will close permanently this fall, impacting nearly 50 jobs as a direct result of the GM plant's months-long shutdown, union officials say.

Qualtech Seating Systems, a Magna-owned plant, will be wound down in a phased approach over the next two months before being fully closed on Oct. 10, said Tracey Fuerst, vice president of corporate communications and PR with Magna International.

"This decision follows a comprehensive review of the business and fluctuating industry dynamics," Fuerst said in a brief media statement.

"We appreciate this decision is a difficult one for the valued and hard-working employees at Qualtech, and the company is committed to working with the team through the plant closure process to help ensure a smooth transition."

Fuerst did not respond to a follow-up inquiry made by CBC News.

Jimmy D'Agostino, president of Unifor Local 2009AP, which represents hundreds of workers at Magna facilities in London, Mississauga and Windsor, including at least 33 at Qualtech, says he learned of the closure on Wednesday.

"It's devastating for our members. It's devastating for the local. We didn't see this coming. That work that's there, supplying the CAMI Ingersoll plant, should stay in Ontario and should stay in Canada," D'Agostino said. He said workers were previously told the plant would stay open.

"This EV program (is) not working out well in Canada. EV incentives are not being talked about anymore, and through our government. This is a position we take seriously, and we want the best for our members, our workers in Canada, and we think the government should intervene here and do something."

The Qualtech plant on Commerce Road, near Highbury Avenue and the 401, makes seat assemblies and foam for the Brightdrop van that is built at CAMI, which has been shut down since May. Hundreds were laid off in the spring as GM halted production, citing decreased demand and high inventory levels.

Numbers released by GM earlier this year show 427 vans were sold in Canada in 2024 and 1,529 in the United States. The vans have been known as the Chevrolet Brightdrop 400 and Brightdrop 600 since last year, after folded the Brightdrop subsidiary into Chevrolet.

While CAMI is expected to reopen in October, it's expected to operate a single shift for the foreseeable future, resulting in the indefinite layoff of nearly 500 employees, Unifor officials said in May.

"There's always a concern of that," D'Agostino said when asked if the union was concerned the impacted Qualtech positions could go stateside in the face of U.S. tariffs putting pressure on Canada's auto sector.

"The concern has been there since — and I'll use the term loosely — that gentleman south of the border got into office. He's not just threatening our livelihood, our workers, our membership, our way of life. He's threatened our country."

While 49 people at Qualtech are being laid off, D'Agostino says he worries about the domino effect it'll have, saying one impacted auto industry job affects eight more elsewhere down the line. The union is set to meet with company officials in the coming weeks, he said.

Last month, General Motors reported a decline in profit of 35 per cent in its second quarter, as it took a $1.1 billion US hit from President Donald Trump's tariffs. It's expecting net tariff costs to be higher in the third quarter.

During its second-quarter earnings call two weeks ago, Magna reported its profits had risen despite tariff headwinds.

CEO Swamy Kotagiri said during the call that Magna had settled nearly all of its 2025 net tariff exposure with the major automakers, and had lowered its estimated annualized tariff-related cost projections for the year from $250 million to $200 million.

He said the firm had raised its outlook for the year despite lower vehicle production, crediting cost-saving efforts over the past months.