CAW members blockaded GM's Oshawa headquarters for 11 days, until a judge ordered the union to stop. (Mike Wise/CBC)

General Motors has confirmed it will build hybrid pickups in Oshawa, Ont., in the fall, but it's sticking with plans to close its truck plant in the city next year.

"After careful consideration, GM has decided to launch the new Chevrolet Silverado and GMC Sierra Hybrid production operations at the Oshawa truck plant," company spokesman Stew Low said.

"This does not impact the decision to cease operations at the plant in 2009 or sooner, depending on market conditions," he added.

Keith Osborne, chairman of Canadian Auto Workers (CAW) Local 222 at GM’s Oshawa complex, said he's encouraged by the decision.

"I think somebody somewhere is saying, 'why would we close the best truck plant GM has?'," he said.

GM announced June 3 that the plant will close, eliminating about 2,600 jobs. The company cited a continuing drop in truck sales, blamed on rising fuel prices.

Union and company officials have been meeting to discuss the plant's future. After a June 17 session, CAW president Buzz Hargrove said that GM told the CAW there will be 14 new vehicles launched over the next 18 months.

"Clearly, it makes sense to put at least one of these into their most productive facility," he said.

The CAW maintained the decision to close the plant broke its contract with the company, which GM denied, and launched a blockade of GM's Oshawa head office on June 4. It was lifted on June 15 after the company went to court and a judge ordered the union to stop.