There were cheers on the floor of the CAMI assembly plant in Ingersoll, Ont., after General Motors announced it will invest $250 million to support future vehicle production, a Canadian Auto Workers official said Friday.

The Oshawa-based auto maker said the money will be used to install flexible body shop equipment and tooling at the plant, a move that will make the plant more flexible and cost effective.

“Conversion of the CAMI assembly plant to a flexible manufacturing facility will provide CAMI with the ability to produce multiple global architectures and body styles,” said Kevin Williams, president and managing director, General Motors of Canada.

Construction is expected to begin in the coming weeks, the company said.

The plant, which makes the Chevrolet Equinox and GMC Terrain, was reportedly in competition with U.S. plants for future production of the next generation models of those vehicles.

The company had no specific announcements to make on future vehicle production, a spokesperson said.

But a union official said an investment of that size is always a good sign. “Anytime you throw that kind of money into a plant it very much helps our job stability in the long term,” said CAW plant chair Mike Van Boekel. “The floor’s very excited, very happy with the announcement.”

The plant, which is operating at capacity, employs 2,700 people, including 2,400 hourly workers.

The announcement comes just days before CAW Local 88 enters bargaining with GM for a new contract covering the CAMI plant.

Earlier this year, the unionagreed to open its contract at the plant six months ahead of schedule, saying it would help the plant win new product mandates and secure its members jobs. Bargaining with the company is scheduled to begin Monday.

The union will seek the same economic deal its members received at other GM plants last fall. That deal maintained the current pay rates for existing employees but cut starting rates and benefits for new hires.

Manufacturing flexibility is a key priority for General Motors, and this investment will give CAMI the ability to build a higher variety of differentiated products, on multiple platforms, at much lower costs, the company said Friday.

The next generation of Equinox and Terrain vehicles is due to launch in 2015.

There had been reports GM could move future production of those vehicles to its lower-cost plants in Spring Hill, Tenn., or Ramos Arizpe, Mexico.

Loading... Loading... Loading... Loading... Loading... Loading...

GM has said Canada is the world’s most expensive place to build cars.

General Motors employs more than 9,000 people across Canada and makes a range of vehicles under the Chevrolet, Buick, GMC and Cadillac brands.