General Motors says it will spend $691 million on St. Catharines, Ont.,
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General Motors says it will spend $691 million on its St. Catharines Propulsion Plant to support production of its latest V-8 engines for full-sized trucks and SUVs.
The automaker says the updates will make St. Catharines its third plant to produce the sixth generation of the engine, with production also based in Buffalo, N.Y., and Flint, Mich.
The investment comes as tariffs imposed by the U.S. government have raised concerns about the future of Canada’s automotive sector.
GM Canada president Jack Uppal says in a news release that the investment confirms St. Catharines’ role in one of its core vehicle programs for years to come.
The automaker has also been investing in its plant in Oshawa, Ont., that produces pickup trucks, though the company also moved the plant from three shifts to two at the end of January.
GM’s CAMI assembly plant in Ingersoll, Ont., is sitting idle after it ended production of its electric delivery van last year.
Trevor Longpre, Unifor Local 199 plant chair for the GM powertrain plant, told CBC Niagara that the investment is a huge vote of confidence in the plant and its workforce after a year of turmoil in the auto sector.
“This investment is a signal that this plant makes great quality products for their highest-demand and best-selling vehicles, so we take that as an encouraging sign,” he said.
It’s also a sign that General Motors St. Catharines is a part of the company’s footprint in Canada for the long term, said Longpre.
What it will mean exactly for the workforce, which currently has just under 500 active workers with about 150 workers on layoff, isn’t clear just yet, he said.
But Longpre said after a year of uncertainty spurred on by tariffs imposed on the automotive sector in Canada by U.S. President Donald Trump and his demands that automotive manufacturing be moved to the U.S., it’s good news.
“Considering the uncertainty that’s all throughout the auto industry right now, news like this is the first positive news we’ve heard since the tariffs were enacted last year. So, this is very encouraging to hear for us and especially for our community.”
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