General Motors announced Friday that it would spend $760 million to convert its Toledo, Ohio, factory for EV-related production.
This month, GM will begin transforming part of the 2.8 million-square-foot factory for driveline unit production. The plant will also continue to make transmissions for internal combustion vehicles until EV sales demand a complete factory transition.
The facility will manufacture drivelines for future electric models, including the Chevrolet Silverado EV, GMC Sierra EV, and GMC Hummer EVs.
On Wednesday, GM halted reservations on the all-electric Hummer pickup and SUV after receiving over 90,000 requests.
The Toledo factory will be the first GM propulsion-related manufacturing facility to be converted. By 2035, the company hopes to ditch gas vehicles entirely and only produce EVs.
Employees at the Toledo plant are relieved to hear that GM will be keeping its current 1,500 hourly and salaried workers. The company does not anticipate that it will be hiring any new staff.
The company’s press release called the investment “another example of GM’s intention to create job opportunities and to bring employees along in the company’s EV transformation.”
The futures of employees working at other GM factories is currently uncertain. It has not been announced if the company plans to keep its 10,000 internal combustion engine workers employed or if layoffs are expected.
The Toledo plant was opened in 1916, and GM took ownership of the facility in 1956. Currently, the factory manufactures four transmissions used in several GM models.
“Our Toledo team has a long, proud history of building great products and they have worked hard to earn this investment,” said GM’s executive vice president of global manufacturing, Gerald Johnson. “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.”
General Motors also announced a major agreement with Hertz to order up to 175,000 EVs over the next five years. Hertz plans to add a wide range of GM models to its fleet, including compact cars, midsize SUVs, pickup trucks, and luxury vehicles.
Hertz CEO Stephen Scherr stated, “It’s exciting that two iconic American companies that have shaped the evolution of transportation for more than a century are coming together to redefine the future of mobility in the 21st century.”