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GM eyes $2-billion investment in plant revamps
In talks with federal, Ontario governments for major assembly, research upgrades
By SIMON TUCK, GREG KEENAN, AND MURRAY CAMPBELL
Thursday, May 6, 2004
OTTAWA and TORONTO -- General Motors of Canada Ltd. is involved in serious discussions with Ontario and Ottawa seeking financial help for an investment of up to $2-billion to revamp two assembly plants and significantly increase research and development activities, The Globe and Mail has learned.
The plan, which could also include upgrades to other GM assembly and parts operations in Ontario, would provide a significant boost for a sector that has been battered by assembly plant closings, cancellation of new projects earmarked for Canada and a flood of investment into the U.S. South.
The world's largest auto maker is also examining boosting its research operations in Canada, perhaps increasing the studies it now helps finance at the University of Windsor or developing a new "centre of excellence" for auto research, sources say. That would provide a major shot in the arm for the intellectual side of the industry by increasing high-tech design and engineering jobs that have not traditionally been Canada's strong suit.
The company's plans are far from final, industry and government sources said, but an investment of $2-billion would represent one of the largest such programs yet in the auto industry in Canada.
It would also preserve thousands of well-paid jobs at two GM car assembly plants in Oshawa, and create hundreds of new R&D jobs, as well as spinoff jobs in the auto parts sector and elsewhere.
The GM discussions centre on a major retooling of the auto maker's two Oshawa, Ont., car assembly plants.
These plants now assemble Chevrolet Impala and Monte Carlo models and Buick Regal and Century sedans.
Among the possibilities for Oshawa are turning the car plants into flexible assembly plants with multiple models coming off one or more platforms -- a platform is the basic chassis and underpinning of a vehicle -- or rebuilding assembly lines to switch to rear-wheel-drive cars from the current front-wheel-drive vehicles made there.
Three industry sources said the auto maker is considering Oshawa for a rear-wheel-drive platform called Zeta that will provide the base for the next generation of the Pontiac GTO sedan, and a return of the Chevrolet Camaro sports car in 2008.
But a senior industry source who is familiar with GM's product programs said it's too early to identify Oshawa as the source of Zeta vehicles.
Another option is a new front-wheel-drive platform code-named Chi in the series of new GM platforms named after the letters in the Greek alphabet.
Full Article Here
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In talks with federal, Ontario governments for major assembly, research upgrades
By SIMON TUCK, GREG KEENAN, AND MURRAY CAMPBELL
Thursday, May 6, 2004
OTTAWA and TORONTO -- General Motors of Canada Ltd. is involved in serious discussions with Ontario and Ottawa seeking financial help for an investment of up to $2-billion to revamp two assembly plants and significantly increase research and development activities, The Globe and Mail has learned.
The plan, which could also include upgrades to other GM assembly and parts operations in Ontario, would provide a significant boost for a sector that has been battered by assembly plant closings, cancellation of new projects earmarked for Canada and a flood of investment into the U.S. South.
The world's largest auto maker is also examining boosting its research operations in Canada, perhaps increasing the studies it now helps finance at the University of Windsor or developing a new "centre of excellence" for auto research, sources say. That would provide a major shot in the arm for the intellectual side of the industry by increasing high-tech design and engineering jobs that have not traditionally been Canada's strong suit.
The company's plans are far from final, industry and government sources said, but an investment of $2-billion would represent one of the largest such programs yet in the auto industry in Canada.
It would also preserve thousands of well-paid jobs at two GM car assembly plants in Oshawa, and create hundreds of new R&D jobs, as well as spinoff jobs in the auto parts sector and elsewhere.
The GM discussions centre on a major retooling of the auto maker's two Oshawa, Ont., car assembly plants.
These plants now assemble Chevrolet Impala and Monte Carlo models and Buick Regal and Century sedans.
Among the possibilities for Oshawa are turning the car plants into flexible assembly plants with multiple models coming off one or more platforms -- a platform is the basic chassis and underpinning of a vehicle -- or rebuilding assembly lines to switch to rear-wheel-drive cars from the current front-wheel-drive vehicles made there.
Three industry sources said the auto maker is considering Oshawa for a rear-wheel-drive platform called Zeta that will provide the base for the next generation of the Pontiac GTO sedan, and a return of the Chevrolet Camaro sports car in 2008.
But a senior industry source who is familiar with GM's product programs said it's too early to identify Oshawa as the source of Zeta vehicles.
Another option is a new front-wheel-drive platform code-named Chi in the series of new GM platforms named after the letters in the Greek alphabet.
Full Article Here
