Area Development
General Motors of Canada announced yesterday that it would invest $245 million in its St. Catharines, Ontario plant to manufacture fuel-efficient vehicle transmissions. GM will add 400 new jobs as part of its investment.

"Strong customer demand for our new vehicles is driving improved financial results and the rapid capacity expansion under way," said Kevin Williams, GM of Canada president and managing director. "Retail sales of our Chevrolet, Buick, GMC, and Cadillac vehicles are outpacing industry growth, up 22 percent so far this year."

The production of these transmissions is expected to begin by 2012. GM has made other investments in the St. Catharines facility. Last April, it announced an investment of $224 million to manufacture V8 engines there. In total, it will add 800 jobs at the plant.