The federal and Ontario governments are investing up to $259 million each in General Motors’ Oshawa plant and its CAMI plant in Ingersoll, including for the production of electric vehicles.
The government’s share announced Monday is part of a $2 billion investment by GM to build the company’s first electric vehicle production line in Oshawa. It will also support the construction of electric commercial vans under the new BrightDrop brand due to roll off the production line at the CAMI plant in Ingersoll later this year.
The money will also add a third shift in Oshawa to produce more light-duty Chevy Silverado pickups.
“It’s proof that the Canadian auto industry is here for the long haul. Today’s announcement means more jobs, more clean vehicles and more economic growth for Canadians,” said François-Philippe Champagne, Federal Minister of Innovation, Science and Industry.
Work on the redevelopment of the CAMI plant for the production of electric vehicles is expected to start next month and last until October. It was then that the company would end production of the Chevrolet Equinox. Those currently working at the plant will be laid off for most of the year during construction.
BrightDrop’s first customer is FedEx, which will begin receiving GM’s EV600 electric pickup trucks later this year.
Premier Doug Ford said Monday the investment is a vote of confidence in Ontario by GM and shows the cars of the future will be built in the province. He said the government’s investment will help secure 2,600 jobs in Oshawa.
Last month, GM and South Korea’s POSCO Chemical announced an agreement to build a $400 million plant in Quebec to produce battery materials for electric vehicles (EVs).
“This partnership with the governments of Ontario and Canada is helping GM build a more diverse, innovative and sustainable electric vehicle industry and supply chain for the future, and we’re proud to do it right here in Canada.” said GM Canada President Marissa West. .
The company plans to introduce 30 new electric vehicles by 2025 and eliminate tailpipe emissions from new light-duty vehicles by 2035.