UPDATE 2-GM to spend C$250 mln on Canada's CAMI assembly plant

Fri Mar 8, 2013 3:20pm EST
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* CAMI plant running at full capacity

* Investment indicates auto market strength to continue -analyst

* GM says too early to speculate on jobs impact

* Construction expected to finish by 4th quarter 2014

By Solarina Ho

TORONTO, March 8 (Reuters) - General Motors Co is spending C$250 million ($243.46 million) to retrofit its CAMI Automotive Inc assembly plant in Ingersoll, Ontario, for future vehicle production, the company said on Friday.

The facility currently produces the popular crossover utility models Chevrolet Equinox and the GMC Terrain.

CAMI is currently running at full capacity and has had difficulty meeting demand, and has been shipping some vehicles to GM's Oshawa, Ontario facilities to finish assembly.

"It really does signify the fact that they are confident that the current strength that we're seeing, especially in the United States, will continue for some time," said Carlos Gomes, an auto analyst at Scotiabank, noting that production at the plant increased by 5 percent in January versus a year ago.   Continued...