GM shifts some Camaro production to Michigan - WNEM TV 5

GM shifts some Camaro production to Michigan

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OSHAWA, Ontario (AP) -

General Motors says it will move production of the Camaro from its Canadian plant operation in Oshawa, Ontario, to a plant in Michigan.

The Camaro is currently made at GM's Oshawa flex plant, which employs some 2,000 people and also produces the Buick Regal and soon, the Cadillac XTS. The Canadian Auto Workers' most recent contract with GM, which was ratified in September, guaranteed production of the Camaro in Oshawa only until the end of the current generation model.

GM said in a statement that "lower capital investment and improved production efficiencies were key factors" in the move. GM also says it will continue to meet production targets agreed to with the federal and Ontario governments in 2009.

Canada contributed $13.7 billion to help bail out GM and Chrysler.

Meanwhile, General Motors will spend $5.5 billion to buy back 200 million shares of its stock from the federal government.

The government also plans to sell its remaining stake in the automaker within the next 12 to 15 months.

GM will pay $27.50 per share, about $2 more than Tuesday's closing stock price.

The government got its shares of the company as part of a $49.5 billion bailout of GM that began nearly four years ago.

The bailout saved GM from collapsing into financial ruin.

The move leaves the government with 300 million shares. GM says the government plans to sell them on the open market starting in January.

The deal still leaves the government $21.5 billion short of breaking even on its investment.

Copyright 2012 Associated Press. All rights reserved.

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