The Toronto Star is reporting that General Motors will confirm that it will proceed with a $245-million investment for its powertrain operations in St. Catharines.
The investment by the automaker was revealed two years ago and industry sources have told the Toronto Star that GM of Canada Ltd. will move ahead with a project for construction of a manufacturing system to produce fuel-efficient six-speed, front-wheel drive transmissions starting in 2012.
When the plan was first made in 2008, GM did not make a formal announcement as the company was not ready, according to sources. However, the federal government released an exchange of letters with GM outlining the investment and a financial break for the company. According to those letters released, the federal and Ontario governments would not make the automaker meet early repayment obligations for missing job commitments in exchange for the investment pledge. The announcement will see some 350-400 jobs being secured in order to build the next-generation of GM’s aluminum, small block V8 engines in 2013.