General Motors has announced that it will invest $250 million in its CAMI Assembly Plant in Ingersoll, Ontario, Canada to install flexible body shop equipment and tooling for future vehicle production.
Currently, CAMI manufactures the Chevrolet Equinox and GMC Terrain crossovers based on a specific version of GM’s Theta vehicle architecture. The $250 million investment will convert the plant to a flexible manufacturing facility with “the ability to produce multiple global architectures and body styles”, according to GM Canada president and managing director Kevin Williams, adding that “Continually improving the flexibility of our manufacturing operations helps us respond quickly to customer needs and market demand”.
“We have had a strong start to 2013 with customer demand for our newest vehicles driving improved sales,” said Mr. Williams. “This is strong confirmation that our investing in manufacturing flexibility, finding ways to bring new products to market faster, is the right strategy.”
The investment will equip CAMI with the ability to build a higher variety of differentiated products on multiple platforms, and a much lower costs, the automaker stated in a press release.
Construction is expected to begin in the coming weeks.
The GM Authority Take
This move more or less secures the future of CAMI, at least for another product generation. We expect that the plant will be one of GM’s North American facilities to produce the next-generation Equinox and/or Terrain, both of which will switch to an iteration of GM’s Delta (D2XX) compact vehicle architecture shared with the next-gen Chevrolet Cruze and Opel Astra, among others. That switch will finally place the crossovers squarely into the compact vehicle segment along the lines of the Ford Escape.
Switching to the D2 platform is one of the reasons production will become more flexible and less expensive. And since CAMI will be tooled to produce D2-based vehicles, it will also have the ability to make other products utilizing the same vehicle architecture, production constraints and other bottlenecks allowing.
We’d like to extend a warm congrats to CAMI workers and management, who have elected to commence early labor negotiations with GM back in February.
Comments
Dumb question, since the Theta isnt exactly a bad platform, any sign it may soldier on as a larger formated vehicle of some kind…
@yaba It’s possible, but in my opinion, unlikely. Here’s why.
The purpose of consolidating vehicle platforms is twofold:
1. Reduce manufacturing complexity (leads to significantly higher per-vehicle profit).
2. Create more competitive vehicles based in greater engineering and design input during R&D process.
Keeping Theta around skiing really accomplish either of those feats while requiring GM to take up manufacturing space in a plant where it could be making more profitable vehicles. If anything, I’d sooner expect a midsize CUV based on Epsilon/E2.
Yes, hopefully GM will have a true midsize CUV between the compact Cruze based Equinox and the very large Lamda based Traverse.
The question I have will the Lamda based Traverse find itself a new “global” platform. I cannot see that happening and since the Lamdas are so profitable they can pull off an exclusive platform.
The direction to these new platforms is this.
Lower cost with increase flexibility. Also to lose weight.
The other thing with the flexibility is that they can build different cars of many types on one line. Take a look a the new Alpha. They can do a ATS, CTS , Camaro and possibly the new SS by 2016-17 on one line. This way they can produce cars in lower numbers and keep the profits up.
GM right now is on a mission and killing weight is the number one goal. The Theta while a good platform is old and has it’s limits where weight can be removed much like the VF Zeta. It will take a new platform to kill the weight.
I love my terrain but if it were 400 pounds lighter I would love it even more.
The flexibility also holds two advantages for GM. They can move production anywhere in the world to build car that they need on these new global platforms. This means they could import Holden Cruze from Lordstown if needed or they can build them in Queensland if it is cheaper. Not that I expect it to happen but this is just an extreme example. The Regal started in Germany and move to Canada is a less extreme example.
Also when contracts are up like in Canada it gives GM a bargaining advantage. If they can build this vehicle in Springhill as easy as Ontario it makes the unions a little less defiant.
Their is a lot in play here and it will all come together as we get these new platforms. GM finally has the money to pull this off as when the Zeta and Delta 2 were done they were limited on what they could pull off.
Mr. Luft….Does this mean ehat the 2014 Nox will be built at the Canada plant. And, will there be a big change to the 2014 Nox?
Thanck you….Richard
As a Canadian resident I will be curious to observe what the CAW does with the labour agreement. As a tax payer I am also curious to observe what GM does, as they gladly took my tax dollars. As a former GM employee/dealer owner for 40+ years I wait on the sidelines.
Alex, Thanks appreciate the feedback and as always the dialogue on GMA
This is great news! Nice to see that GM is investing in CAMI. I am very happy with my 2012 Chevy Equinox. My thanks to all of the employees who design and manufacture the Equinox and Terrain!!! I’m hoping that the next version to be even better!!!
Thanks.