GM to spend $2.2 billion to build electric and autonomous vehicles at Detroit plant

The Origin, its first self-contained vehicle without a steering wheel or a brake, was launched last week by GM Cruise’s subsidiary. CEO Dan Ammann vowed at that time to reveal details of the production in the next few days. Okay, this is the day when GM revealed that it is spending 2,2 billion dollars on the expansion of its automated and hybrid car factory in Detroit-Hamtramck.

The factory also manufactures all-electric SUVs and pickup trucks in addition to the roots. By 2023, the automaker plans to start 20 electric names, the first being an electric truck to start manufacturing in 2021. The Cruise Origin, a self-driving and electric car-sharing car, which was unveiled in San Francisco last week, will be followed “shortly thereafter.” The first “full” electric vehicle assembly plant, GM’s Detroit-Hamtramck, the company said. (The Detroit News first published last week.)

This is a turning point for GM, which was preparing to shutter its Detroit-Hamtramck plant in June 2019, but which changed course after negotiations last autumn with the United Auto Workers Association. The company manufactures 4 cars including the Chevrolet Impala and Cadillac CT6 and employs approximately 900 people. GM confirmed plans to close the factory one of five U.S. factories. GM said that it would be “inactive” by the end of February as repairs continue for several months.

In recent months, it is also GM’s second big production announcement. The automaker said last December that it was forming a joint venture with LG Chem of South Korea to produce electric car batteries with the two firms targeting an overall investment of $2.3 billion to build a new facility in Lordstown, Ohio. The factory manufactures electric vehicle battery cells made in Detroit-Hamtramck.

Since the Chevy Bolt in 2016, GM has not started a new electric vehicle. In recent years, Tesla’s S and X vehicles have been challenged by Audi, Mercedes-Benz, Jaguar and BMW, who are now producing high end electric cars.

The declaration of its origins was a landmark as this was the first self-sufficient car to be produced without conventional tests. The car was manufactured by Honda, a major investor in the subsidiary of GM Cruise. The driverless electricity shuttle is the same size as a small crossover and is intended for passenger transport.

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