Workers at the Unimotor auto parts plant in St. Thomas received news this week that production will be reduced at the facility and relocated to Mexico, leading to an unspecified number of job cuts.
Standard Motor Products (SMP), based in New York, stated that the decision was not influenced by U.S. tariffs, but rather by ongoing global competitiveness and market demands. The company mentioned that Unimotor specializes in manufacturing auto temperature control motors and will transfer some production operations to an SMP plant in Reynosa, Mexico within the next 18 months.
The 40,000 square-foot plant currently employs at least 90 individuals, with a portion of them expected to be impacted by the relocation. SMP clarified that they are still evaluating the post-move workforce requirements and that the provided information is based on their current assessment.
The company described the decision as challenging and made after careful consideration. Affected employees will receive a severance package that includes continued healthcare coverage and outplacement services, according to SMP’s website. The Unimotor plant, which started operations in 1995, is one of SMP’s 19 manufacturing facilities worldwide and the sole one in Canada.
This development adds to the series of setbacks faced by the local auto manufacturing industry. Earlier this year, Autoneum announced plans to shut down its London plant by year-end, impacting 136 workers. The closure of Magna-owned Qualtech Seating Systems in London last fall affected nearly 50 employees, with the plant supplying GM’s CAMI Assembly in Ingersoll.
Additionally, PowerCo recently announced a two-year delay in the start of production at its gigafactory in St. Thomas to accommodate new battery technology and adapt to market conditions.