Though the investment will not directly create any new jobs, GM management says the investment will help to secure the 400 jobs currently at the facility. The investment will also provide GM with a new fuel-efficient six-speed automatic transmission, to be used in front-wheel drive applications beginning in the first quarter of 2012.

GM plans to use the transmissions produced by the updated Canadian plant for production of the Chevrolet Equinox coming out of the CAMI plant located in Ingersoll, Ontario, as well as the GMC Terrain and Buick Regal, both of which will be produced at the Oshawa, Ontario plant.

Today’s announcement is the second announced investment of nearly $250 million for the St. Catharines plant, as GM had previously committed $235 million for the production of a yet-to-be-named V8 engine. In total, GM will invest $480 million and procure 800 jobs for at least the next few years.

The decision to produce transmissions at St. Catharines was not always final, as GM already had a transmission production facility in Windsor.

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