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NINETY EIGHT REGENCY

General Motors taking full ownership of CAMI car plant in Ontario

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General Motors taking full ownership of CAMI car plant in Ontario

Fri Dec 4, 4:34 AM

OSHAWA, Ont. - General Motors Co. and Suzuki Motor Corp. have agreed to end their automaking joint venture in Canada, with Suzuki selling its 50 per cent stake in Ontario's CAMI Automotive Inc., plant.

The price was not disclosed.

The sale gives GM full control of the plant located in Ingersoll, near London, but leaves it without a Japanese production partner. GM ended its California joint venture with Toyota Motor Corp., the world's No. 1 automaker, earlier this year.

CAMI was established in 1986 and launched production in 1989. It has capacity to make 250,000 vehicles a year.

The factory has so far produced more than 2.3 million vehicles, including small cars such as the Chevy Metro, Suzuki Swift and Pontiac Firefly. It began making midsize sport-utility vehicles in 2004.

GM has high hopes for the plant as it works to return to profitability under government-led rehabilitation.

It is expanding production at the plant amid brisk sales of the Chevrolet Equinox and GMC Terrain, two crossover models that posted 17 per cent higher sales in November.

GM recently announced that it will invest $90 million in the plant. And it has added a third shift plus overtime to keep up with demand.

"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," GM Canada president Arturo Elias said in a statement.

The federal and Ontario governments invested a total of $10.5 billion in GM earlier this year as the automaker struggled to survive the economic downturn.

link:

http://ca.news.yahoo.com/s/capress/091204/business/gm_suzuki_cami

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This needed to happen. They were not building any Suzukis there anymore and GM doesn't need Japanese partners anymore.

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This needed to happen. They were not building any Suzukis there anymore and GM doesn't need Japanese partners anymore.

Thats good news...If only the upgrades and changes could of happened sooner we would actually have some stock. We have so many clients on wait lists for the Terrain and Equinox now they are all getting frustrated.

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Story in Edmunds Auotobserver site is that VW is buying Suzuki out, for small VW car production overseas. It would mean the end of Suzuki as a brand.

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Story in Edmunds Auotobserver site is that VW is buying Suzuki out, for small VW car production overseas. It would mean the end of Suzuki as a brand.

I saw a rumor on Twitter about this a couple weeks back..I wonder if they would continue the Suzuki brand, at least in Japan and Asia? Are any of VW's existing brands big in Asian countries? Seems like motorcycles and small cars would be niches VW could exploit. Suzuki is big in India with their Maruti Suzuki partnership.

Edited by Cubical-aka-Moltar
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More about Suzuki:

"... In fact, a VW takeover could mean an end to Suzuki auto sales in the U.S., as VW doesn't need any more small-car competitors in the U.S. market, even one tracking to move less than 40,000 vehicles this year. Volkswagen might choose to take over any Suzuki showrooms in desirable retail locations and fold the struggling auto-sales operations."

So, GM dumping them resulted in VW picking Suzuki up...

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More about Suzuki:

"... In fact, a VW takeover could mean an end to Suzuki auto sales in the U.S., as VW doesn't need any more small-car competitors in the U.S. market, even one tracking to move less than 40,000 vehicles this year. Volkswagen might choose to take over any Suzuki showrooms in desirable retail locations and fold the struggling auto-sales operations."

So, GM dumping them resulted in VW picking Suzuki up...

Ouch!

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