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

Transmissions for a variety of Chevrolet, Buick, GMC, Cadillac vehicles are built at Toledo, Ohio, plant

General Motors Co said Friday it will invest $760 million at its Toledo, Ohio factory to build drive units for electric trucks, 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, transmission plant that it has renamed Toledo Propulsion Systems.

Congress in August approved significant financial incentives for automakers to convert plants producing parts for gasoline-pore vehicles to electric models.

GMC Hummer EV production

GMC Hummer electric vehicles on the production line at General Motors' Factory ZERO all-electric vehicle assembly plant in Detroit, Michigan, U.S., on Wednesday, Nov. 17, 2021. General Motors invested $2.2 billion in Factory ZERO, the single largest (Photographer: Emily Elconin/Bloomberg via Getty Images / Getty Images)


"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, adding the plant will produce transmission products while building drive units simultaneously during GM’s EV transition.

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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 Charging Pilot

GM and Pilot Company to Build Out Coast-to-Coast EV Fast Charging Network (GM / Fox News)

"This investment helps build job security for our Toledo team for years to come and is the next step on our journey to an all-electric future," said GM executive vice president of Global Manufacturing and Sustainability Gerald Johnson.

GM said last year it would increase its EV and autonomous vehicle investments from 2020 through 2025 to $35 billion, a 75% increase as it vows to stop selling gas-powered vehicles by 2035.

General Motors President Mark Reuss announced Chevrolet will introduce a Silverado electric pickup truck that will be built alongside the GMC HUMMER EV SUV at the company’s Factory ZERO assembly plant in Detroit and Hamtramck, Michigan. 

GM and LG Energy Solution said last month they are considering a site in Indiana for a fourth U.S. battery cell manufacturing plant for the companies' joint venture.


Last week, GM 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.