Suzuki sold its 50-percent stake in the joint Canadian Automotive Manufacturing Inc. production facility to General Motors today. The Ingersoll, Ontario, plant, home to the Suzuki XL7, GMC Terrain, and Chevrolet Equinox, will produce Suzukis no longer.
Because of slumping sales of its XL7, Suzuki decided to end production at the Canadian plant last summer. Selling its stake in the plant will not yield Suzuki a loss, said Hideki Taguchi, a spokesman for the company.
Ending 23 years of collaboration, the CAMI endeavor is one of the last ties the two companies had. In the past GM has owned as much as a 20-percent share in the Japanese automaker. It was later forced to sell its reduced stake as it neared bankruptcy.
GM plans to invest $85 million in the site, increasing its yearly output by over 40,000 units. GM says that demand for the vehicles produced at CAMI has risen more than 17 percent in November and is happy with the added production capabilities. The facility has been forced to add a third shift as demand for its vehicles increased.
"Bringing CAMI completely into the GM family is a strong vote of confidence in the people there and builds on the recent positive news at the plant since the highly successful launch of the Chevrolet Equinox and GMC Terrain," said GM Canada President Arturo Elias.
Source: Automotive News