General Motors has announced plans to invest $560 million in its Ingersoll, Ontario assembly plant to accomodate production of the next-generation GMC Terrain and Chevrolet Equinox crossovers. The investments will be made without financial input from the Ontario and federal Canadian governments.
The investment will secure about 3,000 jobs at GM’s CAMI (Canadian Automotive Manufacturing Inc) Automotive plant. Chevrolet says $190 million of the investment will go directly into the plant, while $370 million will go towards vendor tooling within Canada.
In March 2013, GM announced that it is investing $250 million in CAMI for a new body shop and flexible manufacturing equipment, tooling, and converting the manufacturing facility to support future vehicle production. The investment was made after a detailed evaluation process.
The announcement comes just as GM’s future in Canada has been put into question. High labor and operating costs have been pushing companies out of Canada, and GM’s Oshawa plant, which currently houses two separate production lines, could be next. Production of the plant’s highest volume model, the Chevrolet Camaro, will move to the Lansing Grand River plant in Michigan, and no new products have been allocated to Oshawa as of yet. GM says it is waiting until 2016 to make an announcement in regards to the plant.