GM Turns To Ohio Transmission Plant To Build Electric Motors

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The investment in American manufacturing continues.

The recently-passed Inflation Reduction Act stipulates that to qualify for the $7,500 federal tax credit, electric vehicles must be assembled in North America. This has set off massive investment in US production plants by automakers who currently build their EVs in other countries. While General Motors already has a significant manufacturing presence, the American auto giant just announced a new investment into its Toledo, Ohio Propulsion Plant, which currently employs 1,500 people.

Toledo Propulsion Systems, which has been in operation since 1956, currently builds GM's six-speed, eight-speed, nine-speed, and 10-speed transmissions used in various Chevrolet, Buick, GMC, and Cadillac models. The factory will keep building these transmissions alongside electric motors for the upcoming Chevrolet Silverado EV, yet-to-be-revealed GMC Sierra EV, and GMC Hummer EV Pickup and SUV.


This will be GM's first propulsion-related factory to handle the manufacturing of EV-related products. GM will invest $760 million towards prepping Toledo Propulsion Systems for production of drive units for the aforementioned Ultium models. Renovations to begin the transformation start later this month.

"Our Toledo team has a long, proud history of building great products and they have worked hard to earn this investment," said Gerald Johnson, GM executive vice president of Global Manufacturing and Sustainability. "This investment helps build job security for our Toledo team for years to come and is the next step on our journey to an all-electric future."

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"Our Toledo team will continue to play a key role as we work to strengthen our current truck and SUV dominance, while also playing an important role in our EV growth transition," he added.

The EV drive units produced in Ohio (pictured above) convert power from the battery into mechanical motion at the wheels, working in front-wheel-drive, rear-wheel-drive, and all-wheel-drive configurations for a variety of purposes ranging from off-road to high-performance. The Hummer EV, for example, packs up to three motors that combine to produce 1,000 horsepower.

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"Thanks to investments in American production, like the Inflation Reduction Act and the CHIPS Act, today Ohio represents the future of the global auto industry,'" said Ohio Senator Sherrod Brown. "General Motors' decision to build the company's first EV propulsion plant in the United States here in Ohio is a testament to the strength of our state's manufacturing sector and the talent of Ohio's workers. This investment will boost our state's economy, keep good-paying, UAW jobs in Northwest Ohio, and ensure our state and our workers continue to lead the world in auto innovation."

GM has invested more than $1.9 billion into its Toledo facility since 2011, and it looks like the factory will serve an important role for the company well into the future.

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