General Motors will phase out Chevrolet Equinox assembly at an Ontario plant and spend $787 million (C$1 billion) to retool the factory to build an all-electric commercial van.
The pledge comes as part of a new tentative labor contract reached with Unifor late Friday -- several months before it was due to be negotiated at the plant in Ingersoll, Ontario.
A GM spokesperson wouldn’t say where Equinox production would move, adding the company is focused on getting a ratified deal. GM also builds the Equinox at a plant in San Luis Potosi, Mexico.
Earlier this week, GM said it’s launching a commercial electric vehicle business called BrightDrop and locked in FedEx Express as the first customer for a delivery van, the EV600, later this year.
The investment in the Ontario plant is contingent on union ratification “and confirmation of government support,” GM Canada said in a statement.
“GM Canada is engaged in discussion with the Ontario and feder…