General Motors commits $250-M to upgrade Ontario plant

General Motors said Friday it will invest a quarter of a billion dollars in an assembly plant in southern Ontario.

The significant investment, which will retool its CAMI assembly plant in the town of Ingersoll, Ont. with new equipment, ensures the facility will produce vehicles for years to come, eliminating uncertainty about the carmaker’s plans for the factory which employs about 2,700 workers.

GM Canada says the improvements will enable the plant to build a wider variety of vehicles at a lower cost. Construction on the project is expected to begin within weeks.

North American automakers have been gaining momentum recently as the industry recovers from the severe downturn that started in late 2008.

Industry observers have predicted 2013 North American sales will surpass last year’s as the U.S. economy revives from the recession.

“This is strong confirmation that our investing in manufacturing flexibility, finding ways to bring new products to market faster, is the right strategy.”

The Canadian Auto Workers union, which represents about 2,900 employees at the Ingersoll plant, asked its members last month to approve an early opening of contract talks as GM weighed the future of two vehicles made at the factory.

The CAMI plant, located east of London, Ont. has been producing the popular Chevrolet Equinox and GMC Terrain crossover vehicles. However, the vehicles are expected to be refreshed for 2015.

Originally a joint venture with Suzuki set up in the mid-1980’s, GM assumed full control of the plant in December 2009.

The union lauded the announcement. Ken Lewenza, the CAW national president said it was “excellent news for the Canadian auto industry, workers and the community that greatly depends on this manufacturing facility.”

With files from Canadian Press