This morning General Motors (NYSE: GM) announced they will invest $2.2 billion into their Detroit-Hamtramck assembly plant to produce all-electric trucks, SUVs, and self-driving vehicles. The automaker will invest an additional $800 million in supplier tooling and other projects related to the launch of the new electric trucks.
Through this investment, GM is taking a big step forward in making our vision of an all-electric future a reality… Our electric pickup will be the first of multiple electric truck variants we will build at Detroit-Hamtramck over the next few years.”
GM president Mark Reuss
The Detroit-Hamtramck plant currently builds the Chevrolet Impala and Cadillac CT6. The CT6 is expected to end production this week, and the Impala will end production at the plant in Februrary. The plant will then be idled for several months beginning at the end of February as the renovations begin.
In an interview with Bloomberg, President Mark Reuss teased the company will announce the unveiling of the new electric truck during the Super Bowl. It is commonly assumed to be a new electric Hummer.
Last week, GM’s subsidiary Cruise Automation unveiled a driverless vehicle called Origin — the product of a multi-year collaboration with parent company GM and investor Honda that is designed for a ridesharing service. And well, it has a different look than a standard vehicle. This is expected to be the second vehicle that goes into production once the plant reformats.
These announcements follow a previous $2.3B deal with the formation of a joint venture between General Motors and LG Chem to begin producing battery cells for electric vehicles. The JV will establish an assembly plant on a greenfield manufacturing site in Northeast Ohio.
General Motors stock last traded down 80c to $33.52 at the time of publishing.
Information for this briefing was found via General Motors and the provided links within the article. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
