The investment is part of an agreement in principle with the Canadian union Unifor. The investment is currently awaiting ratification by union members in the coming days.
This investment includes 1 billion ($767 million) to 1.3 billion Canadian dollars ($997 million) at Oshawa Assembly in Ontario. It is expected to be hiring 1,400 to 1,700 hourly workers; CA$109 million in its St. Catharines powertrain plant; and CA$500,000 ($383,535) in operations in a parts distribution center.
Barra stated that the company expects to see a significant increase in its full-size truck capacity when the plant comes online in January 2022. She refused to disclose any other details until the deal is ratified.
Bara further told media that as the U.S vehicle sales continue to recover from the Covid-19 pandemic GM expects demand for its pickups and SUVs to increase.
The truck sale profits hence allow GM to invest in autonomous and all-electric vehicles which are unprofitable yet emerging. By 2025 GM is in the process of investing $20 billion in this.