GM to invest $760 million to move Ohio plant to produce parts for electric vehicles

The new GM logo is seen on the facade of the General Motors headquarters in Detroit, Michigan, U.S., March 16, 2021. REUTERS/Rebecca Cook

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TOLEDO, Ohio/WASHINGTON, Sept 23 (Reuters) – General Motors Co (GM.N) said on Friday it would invest $760 million at its Toledo, Ohio plant to build electric truck drive units, the automaker’s first U.S. powertrain facility repurposed for EV-related production.

America’s largest automaker currently builds GM’s six-, eight-, and ten-speed rear-wheel-drive transmissions and nine-speed front-wheel-drive transmissions in a variety of Chevrolets, Buicks, GMCs, and Cadillacs in its 2.82 million-foot squares of Toledo. , Ohio, transmission plan which he renamed Toledo Propulsion Systems.

Congress in August approved major financial incentives for automakers to convert factories producing parts for gasoline-powered vehicles to electric models.

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An automotive trade group noted that the bill provides “more than $15.5 billion in incentives and grants to ensure the United States builds automotive supply chains and a manufacturing platform for competitive batteries on a global scale”.

“Once the plant is converted, it will produce GM’s family of EV drive units, which convert electrical energy from the battery into mechanical motion at the wheels,” GM said, adding that the plant will produce transmission products while simultaneously building drive units during GM. VE transition.

The Toledo plant currently employs approximately 1,500 people. Many autoworkers have expressed concerns about the shift to electric vehicles and whether it will impact current auto employment.

GM executive vice president Gerald Johnson said GM is looking at ways to increase electric vehicle capacity beyond its current goal of being able to build 1 million electric vehicles in North America by 2025.

But achieving that “would be exceptional. Doing better would be astronomical,” Johnson said.

GM said last year it would increase its investment in electric and autonomous vehicles from 2020 to 2025 to $35 billion, a 75% increase, as it pledges to stop selling gasoline-powered vehicles from 2020 to 2025. 2035.

GM and LG Energy Solution (373220.KS) said last month they were considering a site in Indiana for a fourth U.S. battery cell manufacturing plant for the companies’ Ultium joint venture, which is expected to cost around $2.4 billion.

The U.S. Department of Energy said in July it planned to lend $2.5 billion to Ultium to help fund the construction of new lithium-ion battery cell manufacturing facilities.

Last week, GM announced it would invest $491 million in its metal stamping operations in Marion, Indiana, to prepare the plant to produce a variety of steel and aluminum stampings for future products, including electric vehicles.

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Reporting by David Shepardson and Joseph White Editing by Nick Zieminski

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