GM will invest C$170 million ($180 million) into its plant in Oshawa, Ontario to turn it into a factory producing aftermarket parts and testing facility.
The Oshawa plant currently produces the previous-generation Chevrolet Silverado (below) and GMC Sierra, as well as Cadillac XTS and Chevrolet Impala (above). All of these vehicles are due to cancelled by the end of the year.
Jerry Dias, president of the Unifor union, told Automotive News the plant will have a 10-year contract to produce panels, boot lids, doors and bonnets for GM.
GM is also reportedly in discussions with other companies to bring in stamping work for the factory.
The union boss struck a positive tone when speaking to the press, highlighting the most important win was keeping the factory operational, making it possible for automotive manufacturing to resume at some later stage.
Some idled GM facilities have been revived in the past, including Spring Hill in Tennessee, and Orion Township in Michigan.
The redeveloped plant will employ around 300 people, well down on the 2600 staff currently employed there. Travis Hester, CEO of GM Canada, said Oshawa will now be responsible for "parts manufacturing, sub-assembly and other miscellaneous activities for GM and other auto industry customers".
The company says it will offer "enhanced retirement packages to retirement-eligible Oshawa Assembly employees".
Around 22 hectares of the Oshawa property will be converted into a new test track with long straights and banked oval at either end.
The company will also donate a 1.2 hectare park and 35 hectare wildlife reserve to the city of Oshawa.
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