GM to invest $760 million in electric vehicle (EV) drive unit production in USA

General Motors (GM) has announced it will invest $760 million in its propulsion manufacturing operations for electric vehicles (EVs) at its Toledo, Ohio plant in the USA. 

This investment is to prepare the facility for the production of drive units that will be used in future Ultium-based battery electric trucks, including the Chevrolet Silverado EV, GMC Sierra EV and GMC HUMMER EVs. 

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Toledo Propulsion Systems will be GM’s first US powertrain or propulsion-related manufacturing facility transformed for EV-related production. This investment is another example of GM’s intention to create job opportunities and bring employees along in the company’s electric vehicle transformation. With this announcement, GM has invested more than $1.9 billion in Toledo since 2011. 

Renovation work at Toledo Propulsion Systems will begin this month. 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’s EV drive units will cover front-wheel-drive, rear-wheel-drive and all-wheel drive propulsion combinations, including high-performance and off-road capabilities.

Gerald Johnson, GM executive vice president of Global Manufacturing and Sustainability, said: “Our Toledo team has a long, proud history of building great products and they have worked hard to earn this investment.

“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.”

Purchased by GM in 1956, Toledo Propulsion Systems currently builds GM’s six-speed, eight-speed and 10-speed rear-wheel-drive and nine-speed front-wheel drive transmissions that are used in a variety of Chevrolet, Buick, GMC and Cadillac products. The facility currently employs approximately 1,500 people.

Toledo Propulsion Systems plant in Toledo, Ohio

Johnson added: “Our Toledo team will continue to play a key role as we work to strengthen our current truck and SUV dominance, while also playing an important role in our EV growth transition.

“This investment is a recognition that UAW Local 14 members bring the skills, know-how and drive that make GM successful,” said UAW President Ray Curry. “UAW members look forward to being a part of shaping the future of General Motors.”

This follows the news earlier this month that GM is investing $491 million in Marion Metal Center in Indiana to support electric vehicle (EV) production.

General Motors is a global automaker focused on advancing an all-electric future that is inclusive and accessible to all. At the heart of this strategy is the Ultium battery platform. This will power everything from mass-market to high-performance vehicles. 

General Motors, its subsidiaries and its joint venture entities sell vehicles under the Chevrolet, Buick, GMC, CadillacBaojun and Wuling brands.

Floating rear 3/4 view of an EV drive unit to be built at Toledo Propulsion Systems in Ohio for GM’s battery electric trucks
Ian Osborne
Ian Osborne
Editor-in-Chief at ElectricDrives

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