The automaker will also use 55 acres of the Oshawa property to create a test track for autonomous and advanced technology vehicles.
The announcement means 300 of 2,600 jobs will be kept in Oshawa and GM says there's potential for that number to grow.
The plan would help save some union jobs at GM's Oshawa car-making plant, even though the operations would be scaled down and it will no longer produce cars.
Packages will also be offered to employees who are close to retirement. A "Jobs Action Centre" will be opened in June 2019, in Oshawa to enable employees to plan now for future career opportunities outside GM following the end of Oshawa vehicle production in December 2019. The plant will serve as a stamping facility, producing parts for GM vehicles, with the company saying that they hope to eventually produce parts for other manufacturers as well.
Unifor national president Jerry Dias during a news conference in Toronto on May 8, 2019, with GM Canada president Travis Hester, to announce 300 jobs to be saved during a transition of GM Oshawa plant.
"The fact that we're going to maintain the integrity of manufacturing for the long-term is critically important", he said. "We are in a much better position than we were five months ago when the plant was closing", said Jerry Dias, Unifor National President.
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In addition to the shutdown in Oshawa, which has been churning out cars and trucks for GM for more than a century, Fiat Chrysler Automobiles NV is slated to cut a line at its minivan plant in Windsor, Ontario this fall.
"Just yesterday, Oshawa's autoworkers were facing a completely uncertain future".
Ontario's Minister of Economic Development, Job Creation and Trade, Todd Smith, welcomed the news.
Hester told reporters company, and union officials have been working for the past four to six weeks on a transition plan for the remaining workers.
It's not yet clear when the transformation of the Oshawa plant will begin.