General Motors to Invest $3 Billion in All-Electric Vehicles

General Motors says it will invest $3 billion to produce all-electric trucks, SUVs, and autonomous vehicles
Author:
Publish date:

General Motors (GM) - Get Report said Monday it would invest $3 billion to produce all-electric trucks, SUVs, and autonomous vehicles.

The Detroit automaker said it would spend $2.2 billion at its Detroit-Hamtramck assembly plant on the effort, and the facility would be GM’s first fully dedicated electric-vehicle- assembly plant.

Shares of GM were down 2.2% to $33.56 on a day when the broad markets were slumping.

GM said it also would invest $800 million in supplier tooling and other projects related to the launch of the new electric trucks.

GM’s first all-electric truck will be a pickup with production scheduled to begin in late 2021, the company said in a statement.

The pickup will be followed a short time later by the Cruise Origin, an electric self-driving vehicle unveiled in San Francisco last week. The vehicle has been described as a six-person taxi for rideshares in and around urban areas. It has no steering wheel or gas pedal.

GM’s joint venture with LG Chem, which is investing $2.3 billion to manufacture battery cells in Lordstown, Ohio, will supply battery cells for the electric vehicles produced at Detroit-Hamtramck.

The Detroit-Hamtramck plant’s paint and body shops and general assembly area will be upgraded with new machines, conveyors, controls and tooling.

Last November, GM had said it would be closing Detroit-Hamtramck and four other U.S. plants. But after a 40-day nationwide strike by the United Auto Workers, GM said it would invest $3 billion to retool Detroit-Hamtramck to build electric vehicles

The investment will create more than 2,200 jobs, GM said. Currently 900 workers are employed on one shift at the plant making four vehicles, including the Chevrolet Impala and Cadillac CT6.

General Motors bought Cruise Automation, a San Francisco self-driving-vehicle startup, in 2016.