General Motors plans to invest another $2 billion toward securing its future electric car efforts. In addition to transitioning its Detroit-Hamtramck production facility to an EV-only factory called ZERO, it has now announced that it will also build EVs at its Spring Hill, Tennessee plant. The $2 billion will be used to renovate the Tennessee facility to build EVs, beginning with the Cadillac Lyriq in 2022
The Spring Hill facility, which is GM's largest in North America, will be the manufacturer's third EV plant once all the renovations are completed. The Tennessee facility will continue to build the gas-powered Cadillac XT5 and XT6, but Acadia production will be shifted to Lansing, Michigan to make more room for electric vehicle production at Spring Hill.
The substantial upgrade at the Spring Hill plant will involve the expansion of paint and body shops, in addition to extensive retooling, new machines, conveyors, and controls needed to move forward with electric vehicle production into the future.
On top of the $2 billion investment, GM needs to spend hundreds of millions on other plants as it moves gas-powered vehicles elsewhere. The automaker will spend $100 million on the Lansing plant, $32 million in Flint, and $17 million in Romulus, among others.
The company also announced a $3.5 million investment at the Orion, Michigan facility that builds the Chevrolet Bolt EV and $750,000 in Brownstown, where it will produce the Cruise Origin self-driving people hauler.
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It's interesting that right after GM announced Factory ZERO and its plans to build the Hummer EV and Cruise AV there, now it's announcing other key locations with plans to build EVs. To GM's credit, if it really needs to make all of these adjustments and spend heavily, it must have grand plans for a high volume of EV production in the future. A single EV plant won't cut it. CEO Mary Barra shared:
"We are committed to investing in the U.S., our employees and our communities. These investments underscore the success of our vehicles today, and our vision of an all-electric future."
All-in-all, in about a year and a half, GM has announced a commitment to spending more than $4.5 billion for future electric car efforts.