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General Motors of Canada will keep its Oshawa operations partially alive, investing $170 million and preserving 300 jobs as it transforms the plant into a supplier of aftermarket parts for existing models.

The automaker will also use 55 acres of the Oshawa property to create a test track for autonomous and advanced technology vehicles.

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“This new business will retain 300 Oshawa jobs with the intent to grow and generate significant additional jobs in the coming years as the business attracts new customers,” said GM Canada president Travis Hester, who announced the move alongside Unifor president Jerry Dias Wednesday morning.

The move falls short of a full reversal of GM’s decision in November to shutter the operation as one part of a global restructuring plan to close eight plants, cut 6,700 jobs and save the company US$6 billion annually.

Indeed, under the new plan for Oshawa, nearly 2,700 jobs will still be eliminated.

The good news for us is this will remain a GM operation … This keeps us in the game.” Flavio Volpe, president of the Automotive Parts Manufacturers Association

But the move keeps Oshawa within GM’s portfolio of operations, and leaves open the possibility that it could be used for other manufacturing down the road, said Flavio Volpe, president of the Automotive Parts Manufacturers Association (APMA).

“The good news for us is this will remain a GM operation,” Volpe said. “When you see a plant close, you usually see the company mothball the physical asset and end operation. This keeps us in the game.”