GM Shifts Some Auto Production to U.S. From Canada
General Motors is moving some of its operations -- and jobs -- back to the U.S., the company announced today. The decision, which was made on a "comprehensive business case," will be a step toward making GM vehicles "as efficiently as possible," according to a company press release. GM, which makes vehicles under the Chevrolet, Buick, Cadillac, and GMC brands, as well as others, is moving production of the newest Chevrolet Camaro to Lansing, Mich., from Oshawa, Canada. There was no word on how many jobs will be created as a result domestically.
The U.S. automaker hopes the move will increase efficiency; the Camaro is the only rear-wheel drive model currently made at the Oshawa plant. In contrast, GM's Lansing Grand River Assembly Plant already makes two rear-wheel Cadillacs -- the CTS and ATS -- so future Camaro assemblies can be consolidated there.
The announcement comes the week after Michigan Gov. Rick Snyder signed a "right to work" law, allowing Michigan workers to choose whether they want to participate in unions.
GM stock closed more than 6% higher today, as news also hit the wires that the company is buying back 200 million company shares from the U.S. government. GM will pay $27.50 per share, a 7.9% premium to Tuesday's closing price, and the sale will be completed by year's end. Even after the transaction, the Treasury will still hold about 300 million GM shares, or 19% of the outstanding stock. The government plans to unwind those shares within the next 12 to 15 months.
Last week also saw the Treasury announce plans to unwind the last of its ownership stake in insurance giant American International Group .
The article GM Shifts Some Auto Production to U.S. From Canada originally appeared on Fool.com.John Divine has no positions in the stocks mentioned above. You can follow him on Twitter, @divinebizkid, and on Motley Fool CAPS, @TMFDivine.The Motley Fool owns shares of AIG and has options on AIG. Motley Fool newsletter services recommend AIG and General Motors. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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