(MENAFN) General Motors (GM) Canada announced that it will shift production of the next version of its Camaro sports vehicle to a plant in Michigan from Ontario, reported AP.
GM attributed the move to lower capital investment and better production efficiencies.
It added that the new Camaro will be assembled at the company's Lansing Grand River Assembly plant in Michigan.
The carmaker said that it will keep meeting production targets agreed in 2009 with the federal government in Canada and provincial Ontario government.
Canada's Ottawa and Ontario gave USD13.7 billion to help bail out GM and Chrysler and both own nearly 9 percent of GM's common shares.
Labor agreements inked between the Canadian Auto Workers' (CAW) union and the North American autoworkers a few months ago are expected to result in an exodus of jobs to the US due to lower labor rates.
CAW President, Ken Lewenza, said that starting late 2015 or early 2016, GM's move will reduce output in Oshawa by one third.
Lewenza asked GM to replace the production, forecasting at least 1,000 direct jobs and 9,000 indirect jobs to be lost if it isn't replaced, whereas the Canadian government stated that it expects an explanation from GM.