General Motors (GM) announced that it would invest $ 300 million in a Michigan plant to manufacture a new Chevrolet electric vehicle, overruling the verdict to build the EV outside the United States.
The announcement comes in the wake of GM’s recent job cuts and plant closures, which have complicated bargaining with unionized workers over a new four-year contract and prompted President Donald Trump’s strong criticism of the decision to stop the production of a plant in Lordstown, Ohio.
This plant, which builds the 100% Chevrolet Bolt, will enjoy the venture and it will also bring 400 new jobs. Orion Assembly, which employs approximately 880 people per hour and 130 employees, also produces the Chevrolet Sonic and Cruise AV test vehicles.
“We are excited to bring these jobs and this investment to the US,” said Mary Barra, GM’s President and CEO.
“This new Chevrolet electric vehicle is another positive step in our commitment to a 100% electric future. GM will continue to invest in our US operations, where we see growth opportunities,” he added.
In November, GM accelerated belt tightening with cuts of thousands of employees, plant closures in North America and the elimination of several car models. As, it attempted to reduce transform into an agile company focused on SUVs, crossover vehicles and high-margin trucks, and investments in future products such as electric and autonomous vehicles.
Over the past four to five years, GM has gone though transformation; it has shed costly, money-losing programs like the Opel brand in Europe. It has invested more in electrification and autonomous vehicle technology.
The firm does not disclose details about the future electric vehicle, its cost as well as its performance indicators. It will be designed and developed from an advanced version of the Bolt EV architecture, the company announced.