General Motors Co. will invest about $ 800 million to bring the production of the BrightDrop EV600 electric vehicle to its CAMI manufacturing plant in Ontario, Canada.
The investment will turn the factory into a large-scale electric delivery vehicle manufacturing plant to support GM’s time to deliver the EV600 by the end of 2021, the company said in a statement. The agreement is subject to ratification with the Unifor union and confirmation of government support.
GM on Tuesday announced the creation of a wholly-owned company, BrightDrop, last week, with plans to supply battery-powered vans, but also offers fleet management services.
See more: GM expands push-up connectors to delivery vans and luxury cars
The proposed investment would create Canada’s first large-scale commercial electric vehicle manufacturing plant, Ontario Prime Minister Doug Ford and Economic Development Minister Vic Fedeli said in a statement.
Separately, Ford Motor Co. reached an interim contract agreement with Unifor during the second half of last year, including plans to assemble five battery-powered models starting in 2025 at the company’s Oakville, Ontario plant. The plant was in danger of closing because the Edge sports vehicle manufactured there has an uncertain future.
Fiat Chrysler Automobiles NV also accepted it spend between $ 1.35 and $ 1.5 billion on a new electric vehicle platform at the Windsor, Ontario plant.
GM has deep roots in Ontario, having built more than 20 million vehicles Oshawa plant since 1918. GM said last fall that it will invest up to C $ 1.3 billion ($ 997 million) to reopen its assembly plant in Oshawa under an interim agreement with Unifor.
(Updates with the Ontario government’s commentary and the fourth paragraph EV-related pacts)