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General Motors Corp. will build a new luxury stretch sedan called the Cadillac XTS at its assembly plant in Oshawa, Ont., according to suppliers briefed on the automaker`s latest product plans.
The new car, together with the upcoming Buick Regal, a redesigned Chevrolet Impala and current Chevrolet Camaro, will form the backbone of the company`s manufacturing footprint in Canada well into the next decade, industry sources indicated. GM will also build a hybrid version of one of those four models at the Oshawa site, its main Canadian assembly facility.
While automakers have always trumpeted the new vehicles they build in Canada with splashy launch ceremonies attended by political leaders, the new GM cars have added significance because Canadians would be owners in the company under a reorganization plan for GM being weighed in U.S. bankruptcy court.
The federal and Ontario governments last month pledged US$9.5-billion to help the bankrupt carmaker reinvent itself and protect thousands of jobs. It is the largest-ever public intervention in the industrial sector. Under the plan, Ottawa and Queen`s Park would receive 12% of the common shares of a new GM that will exit bankruptcy protection as well as about US$1.7-billion in debt and preferred stock.
"To the extent that both the feds and Ontario have skin in the game, I think they need to be satisfied that they made the right decision," said Bill Pochiluk, president of consultancy AutomotiveCompass LLC in West Chester, Pa. "We think the lineup for Oshawa is very strong."
Read the full article here.
The new car, together with the upcoming Buick Regal, a redesigned Chevrolet Impala and current Chevrolet Camaro, will form the backbone of the company`s manufacturing footprint in Canada well into the next decade, industry sources indicated. GM will also build a hybrid version of one of those four models at the Oshawa site, its main Canadian assembly facility.
While automakers have always trumpeted the new vehicles they build in Canada with splashy launch ceremonies attended by political leaders, the new GM cars have added significance because Canadians would be owners in the company under a reorganization plan for GM being weighed in U.S. bankruptcy court.
The federal and Ontario governments last month pledged US$9.5-billion to help the bankrupt carmaker reinvent itself and protect thousands of jobs. It is the largest-ever public intervention in the industrial sector. Under the plan, Ottawa and Queen`s Park would receive 12% of the common shares of a new GM that will exit bankruptcy protection as well as about US$1.7-billion in debt and preferred stock.
"To the extent that both the feds and Ontario have skin in the game, I think they need to be satisfied that they made the right decision," said Bill Pochiluk, president of consultancy AutomotiveCompass LLC in West Chester, Pa. "We think the lineup for Oshawa is very strong."
Read the full article here.
