TORONTO -- General Motors of Canada is set to unveil a Canadian $2.5 billion ($2 billion) investment package for its Canadian operations, a Canadian newspaper reported on Tuesday.
The Globe and Mail newspaper said the funding, set for Wednesday, will include a major boost to its research and development spending in Canada.
The announcement comes after GM Canada, an arm of General Motors, reached a deal with both the Ontario and federal governments for more than Canadian $400 million in financial assistance to bring flexible manufacturing to its two car plants in Oshawa, a new product line to its St. Catharines engine plant and research and development investments worth about Canadian $135 million at a number of universities.
The cash infusion ensures the future for about 10,000 GM Canada employees and could lead to a third shift at one of the plants, the newspaper said.
This is the second major announcement by a Canadian automaker in the past six months. In October, Ford Motor of Canada announced a Canadian $1 billion assembly plant and research center for its Oakville, Ontario, operations. The Ontario and federal governments contributed Canadian $200 million to project.