General Motors plans to significantly increase its highly profitable pickup truck output by investing up to $ 1 billion in operations in Canada.
The investment is part of a tentative deal with Canadian association Unifor, GM CEO Mary Barra told investors Thursday during the company’s third-quarter earnings call. The investment is awaiting approval by union members in the coming days.
“We can’t build enough,” Barra said of the trucks. “We will be moving very quickly. We expect construction to begin on the new facility and the flexible module assembly at Oshawa as soon as it is approved.”;
Mr. Barra said GM expected to “significantly increase” full-size pickup capacity when the plant goes into operation in January 2022. She declined to disclose other details before the deal was finalized. by.
The investment includes C $ 1 billion to $ 1.3 billion ($ 767 million to $ 997 million) in the Oshawa assembly plant in Ontario, which is expected to hire 1,400 to 1,700 workers by the hour; CA $ 109 million in the powertrain plant in St. Petersburg Catharines; and CA $ 500,000 when operating at a component distribution center.
Earlier in the morning, Barra told reporters that GM expects demand for its pickup trucks and SUVs to continue to rise as US car sales continue to recover from the coronavirus pandemic.
“We are seeing demand for trucks continue to increase. It’s a regular thing,” she said in a media call. “As the market recovers, we will see strong truck growth, strong truck demand and market share. That has definitely boosted our business.”
Sales of such vehicles largely helped GM beat expectations for Wall Street earnings for the third quarter, including a 15% North American operating margin – the highest among homes. auto maker in Detroit.
Profits from the truck sales allow GM to invest in emerging, unprofitable segments, such as autonomous and all-electric vehicles. The company is in the process of investing $ 20 billion in segments through 2025.
The Oshawa facility operated as a spare parts supplier to other GM plants after vehicle production ended in December 2019. This facility previously assembled passenger cars and assistants. manufactured part of GM’s previous generations of Chevrolet Silverado and GMC Sierra pickup trucks.