Magna cuts 850 Toronto-area auto jobs

Another 850 Canadian automotive jobs have been written off in the Toronto area as Magna International Inc. announced two plant closures next year.

The company, which reported its first quarterly loss in 17 years earlier this month, said in a statement its Exterion operations in Aurora and Newmarket, both north of Toronto, were no longer viable.

The plants make front and rear bumpers, grilles and side body panels for Chrysler, Volkswagen, Chevrolet, Pontiac and Acura, the Toronto Star reported.

Magna co-Chief Executive Officer Donald Walker told analysts the company would continue on its course of removing unused production capacity.

We want a lean and efficient operation while not sacrificing our future so we're stronger when the automotive market recovers, Walker said.

In September, Magna cut 400 jobs at its southwestern Ontario Formet plant in St. Thomas.

During the past year, southern Ontario's automotive manufacturing sector has been decimated as automakers and their suppliers grapple with declining sales and escalating costs.

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