General Motors (GM) is ramping up production at its Toledo, Ohio, facility. On April 23, the company announced it will now focus more heavily on producing transmissions for gasoline-powered and hybrid vehicles, seemingly shifting away from its earlier plans of prioritizing electric vehicle (EV) drive units.
GM’s EV Plans on Hold
Back in 2022, GM announced a $760 million investment to transform the Toledo factory into a hub for EV drive unit manufacturing. It was set to become the first U.S. powertrain facility fully repurposed for EVs.
However, with recent shifts in global trade, which could include the tariff changes, GM appears to be adjusting its strategy to concentrate more on its gas and hybrid vehicle production.
Focus on Hybrids
While the Toledo facility already builds 10-speed transmissions for gasoline vehicles, it will now increase its focus on producing advanced hybrid parts—specifically the new 8XE hybrid transmission, which will power upcoming plug-in hybrid and standard hybrid vehicles.
GM says hybrids are becoming more important as EV sales growth has slowed slightly in the U.S. The company’s CEO, Mary Barra, confirmed that hybrids will play a bigger role than previously expected, although GM is sticking to its goal of being fully electric by 2035.
Future Plans
GM plans to add new hybrid vehicles to its lineup by 2027, keeping the plant—and its employees—busy while allowing GM to stay flexible and able to adapt to evolving market demands.
There are around 1,500 people working at the Toledo facility, and the company says it’s confident that the workforce will manage the expanded production.
Image Credit: Shutterstock/Jonathan Weiss
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