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General Motors Company $GM: $53.28(-2.51%) is expected to announce a $6.5 billion investment in two Michigan sites, leading to the creation of 4,000 jobs in the state, reported the news agency-Associate Press.
The state’s economic development board is likely to okay an incentives package on Tuesday, according to a meeting agenda posted online.
Detroit headquartered automobile manufacturing company – General Motors had earlier planned to invest over $2.5 billion, with battery partner LG Energy Solution in Lansing near GM’s Delta Township plant in a battery cell manufacturing site that will augment in increasing the capacity of EVs in the near time.
Along with factories in Detroit-Hamtramck and Spring Hill, Tennessee, GM aims to invest $4 billion and generate employment for up to 2,300 workers by picking an existing plant in Orion Township as its third electric-vehicle factory.
Three Ford Motor Co. battery plants and a Ford electric-vehicle assembly factory will be built in Kentucky and Tennessee, so these elections represent a significant gain for Michigan.
Michigan legislators and Governor Gretchen Whitmer have set up a new $1 billion fund to attract significant commercial ventures.
“The Ford announcement felt like a punch in the nose,” Quentin Messer Jr., CEO of the Michigan Economic Development Corp. and president and chair of the Michigan Strategic Fund, said in December. “Michiganders have always responded to every punch with a more forceful counterpunch.”
The Orion Township plant, around 40 miles (64 kilometres) north of Detroit, now manufactures Chevrolet Bolt electric hatchback and small SUV, with the help of just 1,100 workers. The company said an announcement would be made regarding an existing factory that would manufacture electric pickup trucks. Bolt production has been halted owing to a battery recall.
The battery plant will be set up on GM’s Lansing Delta Township Assembly factory site, which manufactures Buick Enclave and Chevrolet Traverse SUVs.
“GM appreciates the support it has received from the Governor, the State Legislature, Orion Township, the City of Lansing and Delta Township related to two prospective projects that GM is considering in Orion Township and Lansing,” company spokesperson Dan Flores said in a written statement. “Until these projects receive final approval, we have no comment on potential announcement timing,”
Electric vehicle sales did not even account for 3% of U.S. new auto sales last year, but analysts expect a surge in the number of sales in the next decade. Consumers purchased roughly 400,000 fully electric vehicles. The LMC Automotive consulting firm projects EV sales to go up to 763,000 this year and over 1.2 million by 2023. The firm also sees EVs account for nearly 44% of new vehicle sales by 2033, with just about 7.4 million sold.
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