GM announced a $250 million dollar investment for the CAMI plant in Ingersoll, Ontaro. CAMI is the main production site for the Chevrolet Equinox and GMC Terrain (also known as the Theta crossovers), two of GM’s best selling models, and the investment comes amid uncertainty over the fate of CAMI itself.
Upon receipt of a multi-billion dollar loan from the Canadian government, General Motors signed a “Vitality Commitment”, essentially a covenant in the loan agreement between GM and Canada’s government, which guaranteed that a certain amount of GM’s North American production would remain in Canada. That number is widely reported as being 16 percent, while page F-69 of GM’s IPO filings outlines that the covenant is valid until GM repays its loan commitments or until December 31, 2016, whichever comes later.
While Oshawa has widely regarded as one of GM’s best plants in terms of producing high-quality vehicles, the future of GM’s Oshawa plant is looking increasingly bleak.
GM’s announcement that it would move Camaro production out of Oshawa has left one of GM’s best plants in a lurch, and the CAW says that the plant’s very survival is at stake.
Christmas has come early for our beloved commenters Zackman and Mikey – GM has confirmed that the current generation Chevrolet Impala will be produced until June, 2014, ostensibly for fleet duty and used car market fodder.
GM is set to announce that production of the Chevrolet Camaro will move from its current home in Oshawa, Ontario, to a plant in Lansing, Michigan.
The drama over a possible strike at the Big Three was averted this summer, but it ain’t over yet; roughly 75 employees walked off the job at two key suppliers this weekend.
Good news for Canada’s manufacturing sector; GM has confirmed plans to add a third shift to the Oshawa Flex Line to help meet demand for the 2014 Chevrolet Impala.
The Windsor Star is reporting that the CAW “has all but given up” on trying to re-open the Oshawa Consolidated line that was closed earlier this year. The Star quotes CAW President Ken Lewenza as saying
“We’re going to keep raising it until the deal is done…But the reality is vehicle production is based on market and market is based on capacity and GM told us they don’t need the capacity.”
The closing of the Oshawa Consolidated Line supposedly had GM in the bailout doghouse – the company was supposed to maintain a certain level of production in Canada according to the terms of their bailout package. As far as we know, GM hasn’t replenished that yet, but they are throwing the Canadian federal and Ontario governments a bone by investing an undisclosed nine-figure sum into R&D at Oshawa.
As part of their bailout package, General Motors agreed that at least 16 percent of its North American production would take place in Canada. The closing of the Oshawa consolidated line may cause GM to be in violation of those terms.