10/17/2013 01:11 EDT | Updated 01/23/2014 06:58 EST

GM delays closure of Oshawa plant to 2016

General Motors announced Thursday that one of two Oshawa assembly plants scheduled to close next summer will stay open until 2016.

The automaker says it is extending production at its consolidated line two years longer than expected to meet projected demand for the Chevrolet's Impala and Equinox models, securing about 700 jobs until 2016.

The Oshawa assembly plant, which employs around 3,500 workers in total, runs two assembly lines. The flexible manufacturing line is currently building the 2014 Chevrolet Impala, Chevrolet Camaro, Buick Regal and Cadillac XTS.

Last month, the federal government sold a quarter of its remaining shares in GM, which it received after giving the automaker a $8 billion cash injection in 2009. One of the conditions of the bailout was that GM was required to keep part of its production in Canada.

General Motors currently employs more than 9,000 people across Canada.