GM will invest $250 million in its CAMI plant in Ontario, retooling the facility and adding new equipment.
The US makes this investment to be able to manufacture vehicles at a lower cost, on various nderbodies. Construction on this project is expected to begin within weeks. Until now, the CAMI plant has been manufacturing the GMC Terrain crossover and the Chevrolet Equinox vehicles, but GM wants to expand production and add more workforce by 2016.
This is good news for the labor unions, which have begun in February a new round of contract negotiations with a March 24th target for a deal. Dan Borthwick, president of CAW Local 88 at the plant, said that the $250-million plan will offer a flex-build shop which will accommodate new vehicles in the near future.
“Hopefully, it will provide some security for our existing members and salaried staff here at GM CAMI Ingersoll,” Borthwick said in an interview.
As the US begins to recover from the severe downturn which has begun in 2008, analysts predict that North American sales in 2013 will surpass those in 2012 as the economy continues to revive from the recession.
“We have had a strong start to 2013 with customer demand for our newest vehicles driving improved sales,” GM Canada president Kevin Williams said in the company’s announcement. “This is strong confirmation that our investing in manufacturing flexibility, finding ways to bring new products to market faster, is the right strategy.”