OSHAWA: General Motors Co. (GM.N -1.87%) says a plan to increase the production of Chevrolet Equinox crossovers will extend the life of one of its Oshawa, Ont., assembly plants.
The consolidated line in Oshawa, which was scheduled to close next year, will instead close in 2017, General Motors of Canada Ltd. said in a statement.
That is the result of a $12-million investment at the consolidated plant and GM’s Cami factory in Ingersoll, Ont., which is the home plant for the compact Equinox crossover and its GMC twin, the Terrain.
“This new investment represents a very effective way for us to meet strong demand for the Chevrolet Equinox,” GM Canada president Steve Carlisle said in the statement.
The body shop at the Cami plant produces more Equinox bodies than Cami has the capacity to paint and finish. So the unfinished bodies are sent to Oshawa, where they are painted and finished with interiors and other components.
The Oshawa consolidated plant also produces older versions of the Chevrolet Impala mid-sized car. The newer versions of the Impala are produced at the neighbouring Oshawa Flexible plant, which also turns out the Buick Regal, Chevrolet Camaro and Cadillac XTS.
Camaro production is scheduled to end in November , while Impala, Regal and XTS are scheduled to end or be moved elsewhere.
That has raised fears about the future of the Oshawa operations and about 3,700 jobs. Mr. Carlisle said earlier this year that no decisions on future product allocations for Oshawa would be made until after the auto maker concludes talks next year with Unifor, which represents unionized workers at the two plants. The contract for those workers and Unifor employees at the company’s engine and transmission plant in St. Catharines, Ont., expires next September. Employees at Cami work under a separate contract.
GM said earlier this week that it will invest $13-million in the St. Catharines operation.
