General Motors (GM) plans to ramp up transmission production at its Toledo facility in Ohio, a move that marks a shift from its earlier focus on electric vehicle (EV) drive unit manufacturing, reported Reuters.
The shift is aimed at supporting the production of light-duty trucks assembled in Fort Wayne, Indiana, and other locations.
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The decision to increase production in Ohio follows reports in early April about GM’s plans to boost output at the Indiana assembly plant.
This development came after US President Donald Trump announced a 25% tariff on auto imports.
A spokesperson for the automaker said the GM’s Toledo production shift is not related to US tariffs.
The spokesperson was cited by the news agency as saying: “General Motors will revise production plans at Toledo Propulsion to support additional capacity of ICE (internal combustion engine) propulsion units in alignment with current market demand and manufacturing resiliency.”
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By GlobalDataEarlier, GM announced a $760m investment to convert the Toledo facility into a hub for EV drive unit production, positioning it as the company’s first US powertrain factory repurposed for EVs.
However, to date, no retail drive units have been produced at the site.
Toledo plant director Rob Morris was cited by Reuters as saying in a memo shared with workers: “To align with current market demand and manufacturing needs, leadership has made the decision to add capacity to support propulsion units currently built at Toledo for ICE (internal combustion engines) products.”
According to an internal memo, one of the drive unit production lines is planned to be transformed into a transmission line, with no current updates on the second drive unit production line’s future.
Furthermore, the automaker has made other adjustments to its EV strategy, including delaying the start of EV truck production at its Orion Assembly plant in Michigan.
GM’s target to produce and wholesale 200,000 EVs in 2024 in North America fell short, with the actual figure reaching 189,000 units wholesale.
