GM plans to increase pickup truck production with up to $1 billion investment in Canada

General Motors plans to considerably increase production of its extremely worthwhile pickup vans by investing up to $1 billion in its Canadian operations.

The investment is a part of a tentative deal with Canadian union Unifor, GM CEO Mary Barra informed buyers Thursday through the firm’s third-quarter earnings name. The investment is pending union member ratification in the approaching days.

“We can’t build enough,” Barra stated concerning the vans. “We will move very quickly. We expect construction to begin on the new body shop and flexible assembly module at Oshawa immediately upon ratification.”

GM expects a “significant increase” in its full-size pickup truck capability when the plant comes on-line in January 2022, Barra stated. She declined to disclose different particulars earlier than the deal’s anticipated ratification.

The investment contains 1 billion to 1.3 billion Canadian {dollars} ($767 million to $997 million) in the Oshawa meeting plant in Ontario with the anticipated hiring of 1,400 to 1,700 hourly staff; CA$109 million in its St. Catharines powertrain plant; and CA$500,000 in operations in a elements distribution middle.

Barra earlier in the morning informed reporters that GM expects demand for its pickups and SUVs to proceed to develop as U.S. automobile gross sales proceed to recuperate from the coronavirus pandemic.

“We just keep seeing demand for trucks continue to grow. It’s a permanent,” she stated throughout a media name. “As the market recovers, we’re going to see strong truck growth and strong truck demand and market share. That definitely fuels our business.”

Sales of such autos largely assisted GM in outperforming Wall Street’s earnings expectations in the third quarter, together with a 15% North American working revenue margin – the very best of the Detroit automakers.

The income from truck gross sales permit GM to make investments in rising, but unprofitable, segments reminiscent of autonomous and all-electric autos. The firm is in the method of investing $20 billion in the segments by 2025.

The Oshawa facility has been working as a elements provider to different GM vegetation following automobile production ending in December 2019. The facility beforehand assembled passenger automobiles and assisted in partially producing earlier generations of GM’s Chevrolet Silverado and GMC Sierra pickup vans.

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