GM Invests $760 Million to Convert Transmission Factory to EV Parts Facility

GMC EV Hummer

Image Credit: Mike Mareen /

General Motors announced it would invest $760 million to convert a transmission factory in Toledo, Ohio, to a facility capable of building drive lines for electric vehicles. The company expects the project to retain approximately 1,500 hourly and salaried employees.

Renovations began last month and electric vehicle component production is slated to start in 2024. The development aligns with GM’s plan to make exclusively electric passenger vehicles by 2035.

The 2.8 million-square-foot Toledo facility currently manufactures four transmissions for pickup trucks and other GM internal combustion vehicles. Once renovations are completed, the location will produce drive lines for electric vehicles, such as the GMC Sierra and Chevrolet Silverado pickups and the GMC Hummer.

Gerald Johnson, GM’s executive vice president of global manufacturing, said the investment would provide job security for workers at the Toledo plant, whose status was unclear as the company transitions to electric vehicle production. GM does not plan to hire new workers at the site.

GM anticipates that the investment will be eligible for tax incentives under the federal Inflation Reduction Act.