TLDR
- GM has reached a tentative deal with Unifor to invest C$1.1 billion ($791 million) in Canadian operations, covering plants in Oshawa, St. Catharines, and Ingersoll.
- The investment includes bringing next-generation GMC Sierra heavy-duty pickup production to Oshawa and a new transmission line starting in late 2029.
- Canada’s auto sector faces 25% U.S. tariffs now, with rates set to rise to 50% on January 1, 2027.
- GM stock opened at $86.31 on Friday, with analysts holding a consensus price target of $101.41 and a “Moderate Buy” rating.
- NHTSA has opened an engineering analysis covering nearly one million GM pickups and SUVs over potential engine failures with the L87 V-8 engine.
GM plans to invest C$1.1 billion in its Canadian operations after reaching a tentative labor agreement with Unifor, the union representing 4,600 GM workers in Ontario.
The deal covers three facilities and comes as Canada’s auto industry faces rising U.S. tariffs.
GM stock opened at $86.31 on Friday. The stock has a 52-week range of $54.33 to $91.85, and sits above its 50-day moving average of $82.54 and its 200-day moving average of $79.63.
Analysts hold a consensus price target of $101.41 on the stock, which carries a “Moderate Buy” rating. Of 23 analysts covering GM, 18 have a Buy rating, three a Hold, and one a Sell.
The Oshawa assembly plant will receive C$144 million to support production of the next-generation heavy-duty GMC Sierra pickup. This is part of a broader plan to keep truck manufacturing in Canada.
Investment Breakdown
A previously announced C$691 million commitment will support production of new V8 engines in Ontario. A further C$215 million goes to GM’s St. Catharines facility for a new generation of transmissions, with production set to begin in late 2029.
GM also committed not to close or sell its CAMI assembly plant in Ingersoll while it evaluates alternative production options. The plant has been named for priority consideration if GM secures a Canadian Armed Forces defense contract.
Unifor workers are voting on the agreement Saturday and Sunday.
The investment comes as Canadian automakers face 25% U.S. tariffs on vehicles. President Trump has said tariffs on Canadian cars, trucks, parts, and steel will climb to 50% from January 1, 2027.
Trade talks between Washington and Ottawa broke down last week without a deal. Tariffs on medium- and heavy-duty vehicles were among the unresolved issues.
Analyst and Investor Activity
On the earnings side, GM reported $3.57 EPS in its most recent quarter, beating analyst estimates of $3.19 by $0.38. Revenue came in at $48.03 billion, up 1.9% year over year, ahead of the $47.01 billion consensus.
GM has set its full-year 2026 guidance at $12.00 to $14.00 EPS. Analysts on average project $13.29 EPS for the fiscal year.
Several institutional investors added to their positions in Q2. Beacon Pointe Advisors LLC opened a new stake worth approximately $3.57 million. AXA S.A. raised its position by 69.4%.
On the insider side, CEO Mary Barra sold 318,448 shares at an average price of $90.38 on July 28, under a pre-arranged Rule 10b5-1 plan. President Mark Reuss sold 71,079 shares at $89.97 the same day.
NHTSA has opened an engineering analysis covering 997,743 GM pickups and SUVs with the L87 V-8 engine, including the Chevrolet Silverado 1500, GMC Yukon, and Cadillac Escalade, over potential engine failures.
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