On the anniversary of General Motors Co.'s 2009 Chapter 11 bankruptcy filing, the company announced a $245 million investment to construct a powertrain plant in St. Catharines, Ontario.
This plant, which is slated to begin operations in 2012, will produce a new six-speed transmission with improved fuel efficiency.
This transmission will be supplied to the Chevrolet Equinox and GMC Terrain crossovers and the Buick Regal sedan.
Producing the transmission will result to the creation or the saving of about 400 jobs. Since GM emerged from bankruptcy last July 10, GM has announced that it about 9,500 workers will be either saved or created in the US and Canada as light-vehicle demand recovers.
GM said that it is getting ready to comply with stricter US fuel economy standards, which will increase to a fleet average of 35.5 mpg in the 2016 model year, compared with 27.3 mpg in 2011.
Last April, GM said that it would spend $235 million on the St. Catharines plant, which will build the next-generation V-8 engine starting in 2013.
At St. Catharines, 400 jobs will be saved or created, adding up to a total of 800 jobs. This new transmission is based on the design of GM's current Hydra-Matic 6T40/45.
Production of the vehicles that will soon be equipped with the new six-speed has resulted to the creation or saving of 2,520 jobs at GM's Ontario plant.