GM will invest $300M in Bolt EV plant to construct new electric model
The investment will create 400 additional jobs at the Lake Orion facility.
General Motors has promised to invest some $1.8 billion in its US manufacturing efforts, and now know some of that money will go toward building a new electric vehicle.
GM announced on Friday that it intends to invest $300 million in its Orion Township assembly facility. The plant already builds the Chevrolet Bolt EV , in addition to the Chevrolet Sonic . The latter has already been discontinued in Canada, and it's believed that the small hatchback will suffer the same fate in the US, as well.
The investment will go toward the production of another Chevrolet electric vehicle, which will be based on "an advanced version" of the Bolt EV's underpinnings. GM says this investment should add about 400 jobs to the facility, which is about 20 miles north of Detroit. It's a sensible choice, since the Bolt EV is already built there and the two will be sharing a vehicle architecture. GM hasn't offered up any additional information on this new EV yet, so we'll have to wait until a later date to find out more.
The Lake Orion facility also builds the Cruise AV, which is an autonomous development vehicle based on the Bolt EV.
In addition to building the new EV at Lake Orion because it makes sense, GM said the decision was also the result of the proposed United States, Mexico and Canada Agreement, which requires that 75 percent of auto components come from the USMCA region.
"This new Chevrolet electric vehicle is another positive step toward our commitment to an all-electric future," said Mary Barra, GM's CEO, in a statement. "GM will continue to invest in our U.S. operations where we see opportunities for growth."
GM announced last November that it was massively reorganizing its auto portfolio in the near future. It will end the production of multiple cars, including the Cruze compact and Volt plug-in hybrid, as well as idle several manufacturing plants as part of a massive cost-saving plan. These moves are expected to open up $6 billion by the end of 2020, some of which will be funneled toward electric and autonomous vehicle development.
