General Motors (GM) – Get Report said on Monday that it would invest $71 million in two manufacturing facilities in Ohio, with work expected to begin immediately.
GM will allocate $39 million to its Toledo transmission plant and $32 million at its Defiance casting plant. Both investments are expected to maintain 240 jobs.
“Through these investments, GM continues to strengthen its significant manufacturing presence in Ohio,” said Phil Kienle, GM vice president of North American manufacturing and labor relations, in a company statement.
The company’s eight-speed rear-wheel-drive transmission will be developed and upgraded through the Toledo investment. The other investment will help prepare the Defiance casting plant for future work containing engine casting components.
A team of 1,700 workers manufactures and assembles GM’s six-speed, eight-speed, and ten-speed rear-wheel-drive and nine-speed front-wheel-drive transmissions at the Toledo facility. Those transmissions are commonly used in a number of Buick, GMC and Chevrolet vehicles.
The Defiance facility, which currently employs around 580 people, produces castings for V-6 and V-8 engines that are also used in a variety of GMC, Buick, Cadillac and Chevrolet vehicles.
GM also has said it would build a new $2.3 billion battery cell manufacturing plant in Lordstown, Ohio, through a joint venture with LG Chem. The venture, called Ultium Cells, will create more than 1,100 new jobs, GM said..
GM says the plant will play a crucial role in the company’s plan to eventually go all-electric.
The Detroit automaker employs more than 3,800 people in Ohio. Its investments in the state have totaled $3.3 billion since 2009.
Since May 2019, GM has been working with Lordstown Motors to launch its Endurance electric pickup.
The acquisition of Lordstown Motors by DiamondPeak Holding is expected to close during the fourth quarter and the company will be listed on the Nasdaq.
Here, GM is investing $75 million, which includes selling production equipment and the former Lordstown assembly plant.
On Sept. 16, General Motors shares jumped after the automaker unveiled a family of five electric vehicle drive systems. The move marked its most significant challenge to Tesla’s (TSLA) – Get Report dominance of the clean-energy-car market.