GM Investment 2020: Automaker Earmarks $2.2 Billion For Electric Truck, SUV Production

GM (GM) has announced that it is investing $2.2 billion into its Detroit-Hamtramck assembly plant for the production of all-electric trucks and SUVs with its first pickup slated to begin production in late 2021.

The Detroit-Hamtramck plant will be a fully electric vehicle assembly plant that is expected to create more than 2,200 “good-paying” manufacturing jobs, GM said.

The $2.2 billion investment will be complemented by an additional $800 million in tooling and other projects. The automaker said the electric truck assembly would soon be followed by the production of the Cruise Origin – an electric self-driving vehicle - which GM unveiled last week in San Francisco. LG Chem will supply the batteries for the electric vehicles through a joint venture with GM.

The plant will also receive several upgrades such as new machines, conveyors, controls, and tooling. GM said it has plans to idle the Detroit-Hamtramck plant at the end of February for several months as it takes the necessary steps to ready the facility for the production of its electric vehicles.

The investment by GM in Detroit-Hamtramck builds on GM’s commitment to Michigan for the development and production of electric vehicles. The company has invested more than $2.5 billion in the state, including investments at its Orion assembly plant, Warren battery lab, and Brownstone facility.

“Through this investment, GM is taking a big step forward in making our vision of an all-electric future a reality,” Mark Reuss, GM president, said during a press event at the plant. “Our electric pickup will be the first of multiple electric truck variants we will build at Detroit-Hamtramck over the next few years.”

GM’s Detroit-Hamtramck plant currently builds the Cadillac CT6 and Chevy Impala. The plant employs about 800 workers.

Shares of General Motors stock were down 2.39% as of 9:45 a.m. EST on Monday.