GM Will Make $918 Million Investment in Gas Engines, EV Components
- January 23, 2023
- Posted by: Quatro Strategies
- Category: Manufacturing
General Motors said on Thursday that it would make a $918 million investment in V-8 gasoline engines and electric vehicle (EV) components at four U.S. factories. GM, the largest U.S. automaker, has a two sided strategy to boost EV production while keeping up its investment for gasoline engine vehicles that still account for the vast majority of profits and U.S. vehicle sales. The company has pledged to end production of new gasoline-powered vehicles by 2035.
The large majority of theinvestment, $854 million, will go to plants in Michigan, New York and Ohio to produce its sixth generation small block V-8 engines. The remaining $64 million will be used in New York and Ohio factories for castings and components for EV production.
GM said in a statement that 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.”
The company’s manufacturing executive vice president Johnson said the new investments would provide job security for many years. Many workers have been concerned that the shift to EV production will cost jobs.
GM will this year begin talks with the United Auto Workers union for a new labor contract that will include a heavy focus on the future of plants tied to gasoline-powered vehicles.
Congress in August approved significant financial incentives for automakers to convert plants producing parts for gasoline-pore vehicles to electric models.
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