GM to boost production at St. Catharines plant
Published on Tuesday, June 1, 2010
Word is General Motors will confirm some time tomorrow that it will proceed with a $245 million investment for its powertrain operations in St. Catharines, Ontario.
Industry sources announced today that GM of Canada plans to announce it will move ahead with a project for construction of a manufacturing system to produce fuel-efficient six-speed, front-wheel drive transmissions starting in 2012.
Sources familiar with GM’s plans said the automaker is now ready to proceed with a project that it initially disclosed in September 2008 on the eve of the federal election. “They (GM) had some work yet to do before they could actually go ahead with it,” said one insider.
At that time in 2008, GM did not make a formal announcement, issue a news release or hold a press conference about the investment.
“They (GM) just weren’t ready,” said the source.
The six-speed transmissions being built in St. Catharines will supply assembly plants in Oshawa and Ingersoll, Ontario, both of which have already boosted or plan to increase vehicle production amid a market recovery and heavy demand for the company’s Chevrolet Equinox and GMC Terrain crossover utility vehicles.
GM has scheduled a news conference at the St. Catharines plant Tuesday morning that will be attended by company president Kevin Williams, federal Industry Minister Tony Clement and Canadian Auto Workers president Ken Lewenza.
Source : The Globe and Mail