A source today confirmed to us General Motors tomorrow is scheduled to announce a massive investment of $500-million in the city of St. Catharines, Ontario, in Canada, as part of a plan to produce a new vehicle transmission system.
The source provided the information on condition of anonymity, as they were not permitted to disclose the information.
The capital will be used to design and manufacture a new efficient transmission that would be used in select new GM models.
The announcement will be made tomorrow by GM at the plant, with a ceremony that will include GM Canada president Kevin Williams, and Industry Minister Tony Clement, among other officials.
The massive investment is expected to potentially add hundreds of jobs in the small city just west of Toronto.
General Motors already announced the company would develop a V8 engine in St. Catherines after announcing a $235-million investment.
The new engines and transmissions will be manufactured at the St. Catharines plant, and subsequently shipped to the assembly stations in Ontario to be installed into the vehicles.
Canada has about 20-percent of total North American market share in vehicles produced.
General Motors received emergency bailout loans from both the U.S. Treasury and the Canadian governments, in which it has paid the loans with interest back in full, five years earlier than expected.
It is unclear as to which GM vehicles will be fitted with the new engine.
More details are expected tomorrow during the announcement.
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