By Ramona du Houx October 20, 2020 General Motors (GM) will invest about $2.2 billion in its U.S. manufacturing operations, largely to increase production of electric vehicles, the company announced on October 20, 2020. The investment is the latest for the Detroit automaker as it moves further towards electric vehicles (EV’s) under GM Chief Executive Mary Barrahas‘ triple zero vision […]
By Ramona du Houx
October 20, 2020
General Motors (GM) will invest about $2.2 billion in its U.S. manufacturing operations, largely to increase production of electric vehicles, the company announced on October 20, 2020.
The investment is the latest for the Detroit automaker as it moves further towards electric vehicles (EV’s) under GM Chief Executive Mary Barrahas‘ triple zero vision of zero crashes, zero emissions and zero congestion, an overarching goal for the company.
Since March of 2019, GM has committed to invest more than $4.5 billion in three U.S. manufacturing sites to prepare for EV-related production. The company has previously said it plans to release at least 20 new electric vehicles globally by 2023, including the upcoming GMC Hummer EV, which was unveiled during the World Sereis game on Tuesday night. It’s a high end expensive EV to draw in buyers who want that image. Shares of GM were up about 5 percent on Tuesday ahead of the Hummer unveiling.
GM executives are resurrecting the Hummer name—once a symbol of gas-guzzling excess before the brand was phased out in 2010—on a big, pricey plug-in truck in an effort to draw more affluent buyers willing to pay a premium for the technology. Set to go on sale late next year, the electric Hummer will be the first model in a string of new battery-powered vehicles on which GM Barrahas pinned her growth strategy. The new approach—to sell a small number of expensive models first, and introduce lower-priced versions later on—is taken from Tesla Inc.’s playbook, analysts say. Tesla for years sold the Model S sedan, many of which sell for more than $100,000, before introducing its mainstream Model 3 sedan, now priced around $35,000. GM said the new Hummer pickup truck would be priced at $112,595 when it goes on sale for the 2022 model year.
‘We are committed to investing in the U.S., our employees and our communities,’ Barra said in a statement. ‘These investments underscore the success of our vehicles today, and our vision of an all-electric future.’
According to CNBC, the $2.2 billion in new investments will occur in the coming years. Roughly $2 billion of that money will go toward a plant in Spring Hill, Tennessee, for production of future electric vehicles, including the recently unveiled Cadillac Lyriq crossover. Renovation work at the facility, which will be GM’s third in the U.S. to produce EVs, will begin immediately, according to GM.
In connection with the announcement, GM will eventually move production of the GMC Acadia from the Tennessee plant to a facility in Michigan. The company said it will invest more than $100 million at the Lansing Delta Township plant for assembly of the next-generation Acadia crossover at an undisclosed time.