OSHAWA, Ont. - General Motors will invest $117 million to prepare its assembly plant in Oshawa, Ont. to build the new Cadillac XTS next year.
The automaker said Thursday the move will create or save 400 jobs on the company's flexible assembly line in Oshawa, the company's Canadian headquarters and main car-making operations.
GM Corp. and its Canadian subsidiary were bailed out by the U.S., Canadian and Ontario governments two years ago and restructured its operations, closed plants and introduced new models to compete more effectively and reverse its mounting losses.
In Canada, the company shut down a truck plant in Oshawa and a transmission plant in Windsor, Ont, and cut its workforce.
The Oshawa assembly plant has had major changes in the last year, with new vehicle models and expanded production that has added two new shifts and 1,300 jobs.
The Oshawa plant builds many GM models — from the Impala and Camaro to the Chevrolet Equinox and Buick Regal — and employs more than 4,500 people.
"Adding the Cadillac XTS affirms GM's commitment to a strong manufacturing base in Canada, ensuring Oshawa will have a critical role in the ongoing transformation of Cadillac," GM Canada president and managing director Kevin Williams said in a release.
The Cadillac XTS is being designed to compete against other luxury car brands, a highly competitive market. Production is planned to start in the first half of 2012.
GM Canada employs more than 10,000 people across the country.