American Axle and Manufacturing (AAM) will be the sole supplier of truck axles to General Motors’ Oshawa plant in Ontario when it opens in late 2021.
The Oshawa plant is set to begin production of the Chevy Silverado and the GMC Sierra toward the end of this year. The Canadian plant will provide GM with additional pickup manufacturing capacity as demand for the full-size trucks continues to rise.
AAM will provide Oshawa Assembly with both the front and rear axles for use in these trucks thanks to a new agreement it has entered with GM. AAM is a longtime supplier of axles to GM and already supplies axles for certain versions of its full-size trucks.
“This additional sourcing continues to leverage AAM’s strategic partnership with GM having supported their full-size light truck program with durable, efficient and lightweight drivelines for many decades,” said AAM chairman and CEO, David C. Dauch. “This is a critical part of our business and integral to our two-pronged approach to support both internal combustion and battery electric / hybrid vehicles with the industry’s leading driveline technology.”
GM is investing $1.3 billion CAD into the Oshawa plant to re-tool it for pickup truck production. The assembly line at the facility has remained idle since 2019, when GM killed off the Chevy Impala and Cadillac XTS sedans, though it has remained open for limited parts production and, for a brief period, face mask production.
The plant was previously set to begin production of the Chevy Silverado and GMC Sierra in January of 2022, but with the re-tooling work running ahead of schedule, the trucks will begin rolling off the assembly line there in the fourth-quarter of this year. The Oshawa plant will bring roughly 1,700 new direct jobs to the region once it reaches full capacity.