GM invests US$918m in US plants for gas engine, EV components

GENERAL Motors (GM) said on Thursday (Jan 19) it was investing US$918 million in four US plants for V-8 petrol engine production and electric vehicle (EV) components.

The largest US automaker has a two-prong strategy to ramp up EV production while continuing to invest in its current petrol-engine vehicles that account for the vast majority of profits and most of its US vehicle sales.

It has pledged to end production of new petrol-powered vehicles by 2035.

The majority of the funding, US$854 million, is to prepare plants in Michigan, New York and Ohio to produce GM’s sixth-generation small block V-8 engine and an additional US$64 million in Rochester, New York and Defiance, Ohio for castings and components to support EV production.

GM said the investment showed it was committed to providing “a strong portfolio of (internal combustion engine) vehicles well into the future while continuing to accelerate its transformation to an all-electric future.”

Many workers are concerned that the shift to EV production will cost jobs. GM manufacturing executive vice-president Gerald Johnson said the new investments “provide job security at these plants for years to come.”

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GM will this year begin talks with the United Auto Workers union for a new labour contract that will include a heavy focus on the future of plants tied to petrol-powered vehicles.

Congress in August approved significant financial incentives for automakers to convert plants producing parts for petrol-pore vehicles to electric models. REUTERS