GM Invests $170 Million to Save 300 Jobs in Oshawa

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General Motors plans to invest C$170 million ($126 million) to continue manufacturing parts at a Canadian plant that was slated to close in December.

"We welcome the agreement between GM Canada and Unifor, which will maintain 300 good jobs at General Motors Oshawa".

Unifor national president Jerry Dias said one of the key aspects of the announcement is "the first ever" aftermarket facility for GM.

Dias said the agreement will help keep the company in Oshawa over the next decade.

As The Star reports, GM had initially announced that the plant would be closing, but it is now to remain open under its new remit.

"The U.S. economy and our core business are strong, so we can expand our commitment to U.S. manufacturing and OH and create job opportunities for our employees", GM CEO and chairman Mary Barra said in a statement. There will be more next year. Unfortunately most of the roughly 2,600 hourly workers now employed in Oshawa assembly will still lose their jobs, though there will be opportunities for them to move to other GM plants in Ontario. "Putting a test track in gives those jobs more security ... but also potentially a real possibility of more jobs on the intellectual side of the industry". "Today, GM has committed to providing work for hundreds of them at the plant and to supporting the others, and we want to see it through".

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Ontario's Minister of Economic Development, Job Creation and Trade Todd Smith issued a statement on behalf of the Ford government soon after Wednesday's announcement.

"We are glad this historic site will continue to be a hub for vehicle parts manufacturing, technological innovation and regional economic growth", Smith said in a statement.

Dias said that, while GM's commitment right now is only for 300 jobs, that is likely to expand in the future.

A spokesman for GM declined to comment before an 11 a.m. EDT (1500 GMT) press conference at which the company and the union are expected to make an announcement about the plant.

"We also expect to bring more jobs to the USA over time in support of the expected provisions of the USMCA". "Maybe (GM) saw real pressure from Unifor and that trickled down into the general public and they felt that there was real risk that a total closure would cause real brand damage".

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