General Motors of Canada Limited announced today that its restructuring plan has been approved by the Canadian and Ontario Governments. Consistent with the principle of proportional support for proportional production, the Governments of Canada and Ontario will invest $10.6 billion in General Motors. As a result of this investment in both GM Canada and its parent company, the Governments of Canada and Ontario will receive a significant equity position in the new GM.
The agreements reached with key stakeholders will enable the company to complete its restructuring efforts without the need for court-supervision. GM Canada will focus on Chevrolet, Buick, GMC and Cadillac, as well as continue to invest in green, energy-saving technologies.
While the parent, General Motors Corporation, has announced it will complete its restructuring through the use of a court-supervised process in the U.S., GM Canada will complete its restructuring without the use of a court-supervised process. GM Canada’s operations will likely not be impacted by the U.S. filing.
GM Canada is headquartered in Oshawa, Ontario and employs approximately 9,000 people nationwide. The company manufactures vehicles and vehicle powertrains, and markets the full range of GM vehicles and related services through approximately 700 dealerships and retailers across Canada.
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