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GM’s Toledo Plant To Produce Electric Motors After $760 Million Investment

For the first time in the U.S., General Motors will transition one of its powertrain or propulsion system manufacturing facilities to producing parts for electric vehicles. The automaker announced today that it will spend $760 million to enable Toledo Propulsion Systems to produce electric drive units.

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

Following the transformation, the plant will produce GM’s family of EV drive units that work on the Ultium platform. It will produce the parts for front-, rear-, and all-wheel-drive vehicles.

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General Motors singled out battery electric trucks as the recipients of the drive units from Toledo. That includes the GMC Hummer EV, the GMC Sierra EV, and the Chevrolet Silverado EV.

The transition to electric propulsion systems will not be complete, though. As it builds electric motors, Toledo will continue to build transmission products for GM’s internal combustion vehicles.

“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,” Johnson said.

Under GM ownership since 1956, the plant currently makes six- and 10-speed transmissions for rear-wheel-drive applications, as well as nine-speed transmissions for front-wheel-drive vehicles. The units, which find their way into Chevrolet, Buick, GMC, and Cadillac vehicles, are made by the approximately 1,500 people who work at the plant.

“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.”

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