GM to invest $760 mn to shift Ohio plant to EV-part production

GM new logo reflects EV business

General Motors said it will invest $760 million at its Toledo, Ohio factory to build drive units for electric trucks.

GM said its Ohio factory will be the automaker’s first U.S. powertrain facility repurposed for EV-related production.

The largest U.S. automaker currently builds GM’s six-speed, eight-speed and 10-speed rear-wheel drive and nine-speed front-wheel drive transmissions in a variety of Chevrolet, Buick, GMC and Cadillac at its 2.82-million square foot Toledo, Ohio.

“Once the plant is converted, it will produce GM’s family of EV drive units, which convert electric power from the battery pack to mechanical motion at the wheels,” GM said. GM said the EV plant will produce transmission products while building drive units simultaneously during GM’s EV transition.

The Toledo facility currently employs approximately 1,500 people. Many autoworkers have expressed concerns about the shift to EVs and if it would impact current auto employment.

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

GM, which aims to stop selling gas-powered vehicles by 2035, said last year it would increase its EV and autonomous vehicle investments from 2020 through 2025 to $35 billion.

GM last week said it would invest $491 million at its Marion, Indiana metal stamping operations to prepare the facility to produce a variety of steel and aluminum stamped parts for future products, including electric vehicles.