General Motors (GM) has entered into a new three-year agreement with Unifor, entailing over C$1 billion in investments earmarked for its Ontario operations. The contract, which affects more than 4,600 workers, was recently ratified by union members. Key elements include C$144 million for next-generation Heavy-Duty GMC Sierra production in Oshawa and C$215 million for a new transmission assembly in St. Catharines, set to commence in late 2029.
Additionally, GM has pledged not to sell its idle CAMI Assembly plant in Ingersoll during the contract and aims to mitigate layoffs at Oshawa amid ongoing U.S.-Canada trade uncertainties. The agreement adds to GM’s earlier investment of C$691 million for next-generation V-8 engine production and C$63 million for Oshawa facility upgrades.
Despite this growth, GM anticipates significant cost pressures, including estimated commodity and logistics inflation of $1.2-$1.7 billion in 2026. Furthermore, anticipated higher onshoring expenses may limit earnings momentum, as the company expects a subpar fourth-quarter performance driven by production transition challenges.
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