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By Paul Lienert and David Shepardson
(Reuters) – General Motors Co said on Tuesday it would invest $ 7 billion in Michigan, much of it to boost the production of large-scale electric pickups, with Ford Motor (NYSE 🙂 Co stepping up its fight to dominate the North American EV. . .
The two U.S. automakers, however, will face the current Tesla leader (NASDAQ :), which will soon open a second U.S. plant in Austin, Texas, and is on track to sell more than a million electric vehicles worldwide in 2022.
GM said the Detroit-Hamtramck and Orion Township plants could build more than 600,000 electric trucks a year by the end of 2024, along with three other plants in Tennessee, Ontario and Mexico, to increase the company’s North American electric vehicle production capacity to more than one million. units by the end of 2025.
In January, Ford said it would have an annual capacity to build 600,000 electric vehicles, including 150,000 F-150 Lightning pickups, within 24 months of its intention to become the “2nd largest electric vehicle manufacturer in North America” after Tesla.
Last year, Ford said it would invest more than $ 11 billion in new electric truck and battery plants in Tennessee and Kentucky, along with its Korean partner SK Innovation.
At a news conference on Tuesday, GM CEO Mary Barra said Detroit GM is “committed to making our country the epicenter of the electric vehicle industry.”
GM’s investment includes $ 2.6 trillion with Korean partner LG Energy Solution in a new Lansing battery cell plant that will supply Orion Township and other GM assembly plants when it opens in late 2024.
Leaders of United Auto Workers applauded the Michigan investment on Tuesday and said the union is “ready to welcome new members” at the GM-LG battery plant and sister facilities in Ohio and Tennessee.
GM is also spending $ 4 billion to renovate and expand the Orion plant, which will build different variants of the new Chevrolet Silverado and GMC Sierra electric pickups, President Mark Reuss told the media.
Reuters reported many details of the new investment in Michigan.
Reus declined to comment on details of the incentives provided by Michigan to secure GM investments, including more than $ 500 million at two factories in Lansing that currently build combustion engine vehicles. Michigan officials said the state contributed $ 824 million in incentives, in part to help GM 4,000 new jobs.
Reuss does not mean how much longer GM intends to build the Chevrolet Bolt EV and Bolt EUV Orion. A GM press release said the production of the two electric vehicles would “continue to become a plant.”
Lansing battery cell plant Ultium Cells, a GM-LG joint venture, will be the third plant in the U.S. to build similar facilities in Lordstown, Ohio and Spring Hill. A fourth battery plant in North America is planned.
GM said last June that spending on electric and autonomous vehicles would rise to $ 35 billion by 2025, a 30% jump from the previous forecast.
In addition, Michigan Gov. Gretchen Whitmer said she is proposing a $ 2,500 rebate on the purchase of electric vehicles and charging equipment. GM and Tesla have both exceeded the threshold for a $ 7,500 federal EV tax credit, but Congress is considering raising the limit and extending the federal credit to $ 12,500.
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