GM has spared its plant in Oshawa, Ontario, from closure for a third time.
With the value of the Canadian dollar dropping, General Motors now plans to keep an Oshawa, Ontario, assembly line operating until 2017, the company’s Canadian unit said.
The announcement extends the life of a line that has been repeatedly scheduled for closure during the last decade.
GM said it would invest $12 million Canadian to increase Chevrolet Equinox production and make related changes at the separate CAMI Assembly, extending production on its consolidated line to 2017.
The automaker first announced plans to close the consolidated line, one of its two remaining Oshawa assembly lines, in 2005. It was scheduled to cease production in 2008, but GM has repeatedly moved that date. In 2012, it was set to close in 2013. Most recently, it was expected to shut down in 2016.
The consolidated line also produces the previous generation Chevrolet Impala. The flex line, GM’s other Oshawa line, produces the current model Impala, Buick Regal, Chevrolet Camaro and Cadillac XTS.
“This new investment represents a very effective way for us to meet strong demand for the Chevrolet Equinox and it’s positive news for our community,” said Steve Carlisle, president of GM Canada, in a release.
In April, GM of Canada eliminated approximately 1,000 jobs this year as production of the Chevrolet Camaro moves from Oshawa to Lansing, Michigan.
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The decision to move Camaro production south of the border, first announced in late 2012, will cut the number of vehicles produced in Oshawa to five from six, and will reduce the number of shifts at the plant to three from four. Production of the Camaro will end on Nov. 20.
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GM Canada said the company would try to avoid layoffs by offering buyouts to the 60% of its 3,600 Oshawa workers who are close to retirement.
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GM has said previously that no major new investment decisions will be made for Oshawa until “well into 2016,” after contract negotiations with Unifor are completed in 2016.