Update: The Financial Post reports the Oshawa facility will produce the Chevrolet Silverado to expand pickup production in North America. It is unclear if Oshawa will partially assemble the truck, or if the plant will handle full production. The report states a January 2018 start date for Canadian production.
Details are continuing to trickle out regarding the tentative labor agreement between Canadian union Unifor and General Motors. The largest issue at hand was securing new product and investment for the Oshawa and St. Catherines facilities. In the final hours, GM agreed to invest.
The Globe and Mail reports GM will send unfinished SUVs from the Arlington, Texas facility to Oshawa for final interior assembly as part of the $520 million of investments heading to Canada. The deal would also extend production of the Cadillac XTS, which brand president Johan de Nysschen confirmed would see a significant refresh.
The deal will still see the consolidated line at Oshawa shut down, which currently builds the Chevrolet Equinox, but the flex line will be outfitted with to support truck and SUV production. With the investment, Oshawa will be the only assembly plant in North American capable of building both cars and trucks.
The GM Arlington assembly builds the GMC Yukon, Chevrolet Suburban and Tahoe and the Cadillac Escalade, all hot sellers during the SUV and crossover boom the market is undergoing. Shipping unfinished SUVs to Oshawa may provide a flexibility boost to increase production of each SUV in Texas.