GM is making a big bet on electric vehicles.
Courtesy GM
General Motors might be a little slower than Ford Motor in electrifying its most popular truck brands, but it is working to catch up.
On Tuesday, GM (ticker: GM) announced $7 billion in spending on several Michigan facilities. The company says the spending will create about 4,000 new jobs while expanding electric-vehicle and battery manufacturing capacity. GM says it is the single largest investment in the company’s history.
The spending will make GM’s plant in Orion, Michigan, the second U.S. plant building electric versions of the Chevy Silverado and GMC Sierra pickup trucks.
GM just unveiled the all-electric Silverado earlier this month. The truck is expected to hit U.S. roads early in 2023. That’s about one year after the all-electric Ford (F) F-150 is shipped to customers.
Both vehicles are big deals for Ford and GM: Trucks are big business in the U.S., accounting for roughly 20% of all new light vehicle sales.
GM wants to defend its truck market share, and it wants to be an EV leader.
“Today we are taking the next step in our continuous work to establish GM’s EV leadership by making investments in our vertically integrated battery production in the U.S., and our North American EV production capacity,” said GM CEO Mary Barra in a company news release. “We are building on the positive consumer response and reservations for our recent EV launches and debuts.” The new products include the Silverado, as well as the electric GMC Hummer, Cadillac LYRIQ EV, and Chevy Equinox EV.
In addition to the expanded manufacturing capacity, the $7 billion in spending includes $2.6 billion for battery manufacturing. GM will build another battery plant with battery partner LG Chem (051910.Korea), in Lansing, Michigan. This will be GM’s third battery facility in the U.S.
The total spending is part of GM’s previously announced $35 billion in EV-related spending, happening between roughly 2021 and 2025. That total spend should yield about 30 new EV models by 2025.
GM stock might not be getting a boost from the announcement since it’s part of that larger plan. Shares slipped 1.8% Tuesday on another red day for markets. The S&P 500 and Dow Jones Industrial Average were recently down 1.3% and 0.3%, respectively.
GM stock has had a brutal run amid the market selloff. Shares have fallen for seven consecutive days. GM stock is off about 12% year to date.
Write to Al Root at [email protected]
