Sep 06, 2008 - 05:13 PM

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OSHAWA --  A General Motors spokesman said today the company will be building three new cars in Oshawa, the first of which will be in production in 2010.

The comments come on the heels of today's announcement that General Motors has made a deal with the federal government that will see a new hybrid car produced in Oshawa as part of a deal to avoid financial penalties on the Beacon Agreement.

David Paterson, GM Canada's vice president of corporate and environmental affairs, said the timeline for the other two cars isn't known yet, but he added all three will be in production by the end of 2013. No brands or other specifics on the vehicles have been announced.

Mr. Paterson couldn't say how many jobs might be created as a result of the new products, but said some of the jobs lost to the truck line shutdown announced earlier this year will be replaced. The company announced June 4 it would shut the line down in 2009 putting 2,600 workers out of a job.

"We're optimistic that this will certainly mitigate some of them," he said. "We're going to have a lot of ups and downs in the next few years. We're bringing in people for the launch of the Camero, but then we're closing the truck plant in July 2009. Then, we're ramping up for the first of the three new cars that starts production in 2010."
 
Mr. Paterson said the agreement between GM and the federal and provincial governments was reached Friday, with all parties pushing to wrap things up before the election writ drops on Sunday.

"We wanted to get this done before the election, so we could have some assurance it would get done and not have to wait two months," he said. Mr. Paterson was quick to praise both levels of government for their support, adding that local MPs Colin Carrie and Jim Flaherty were the "heroes" of the situation, for helping to get the agreement finished in time.
 
He noted the company has been working on the agreement since the spring of 2007, saying it took a long time to finish because of changes such as the truck plant announcement.

"The original plan was to produce rear-wheel drive transmissions in St. Catharines, for the pick-up trucks," he said. "When that changed (because of the truck plant shutdown announcement) we had to go back to the drawing board and start again."

“My Conservative colleagues and I have worked especially hard these past several months with our partners at General Motors to help see the company through this difficult economic period,” said  Oshawa MP Colin Carrie.  “I understand the importance of this company and this plant to the City of Oshawa, and I’m proud that we’ve reached an agreement that will help it continue its significant role in this community.”

 “I am thrilled that this agreement has been reached with GM – one that will ensure that workers and families in Oshawa will be well placed to stay in good, high paying jobs,” said Whitby-Oshawa MP Jim Flaherty.  “While auto manufacturers face uncertain economic times around the world, the people of this community can be sure that under the strong economic leadership of Stephen Harper, the Conservative government will continue to be on their side in Oshawa and Whitby.”

Mr. Flaherty told newsdurhamregion.com that while it was important  Oshawa get a long-term product, the fact that the product is a hybrid car is important in the current market.

The deal reached today between GM and the federal and provincial governments means the auto giant will avoid paying millions of dollars in loan penalties that were triggered when the company announced the planned shutdown of its Oshawa pickup truck line.

That deal includes a commitment by GM that it will invest an additional $290 million to manufacture 6-speed transmissions at St. Catharines, produce a hybrid variant of a mid-sized vehicle at the Oshawa car plant, and attract advanced environmental technology research and development projects through GM's Canadian Engineering Centre (CEC) in Oshawa.

Now, St. Catharines will produce front-wheel drive transmissions for the new products in Oshawa.

-- With files from Jillian Follert