GM Will Invest $7 Billion To Build A Power Pickup/battery Factory

- Sep 23, 2019-

According to foreign media reports, GM plans to invest 7 billion US dollars (about 49.6 billion yuan) in the United States for the production of electric pickup trucks and construction of battery factories.

This is part of a negotiation with the United Auto Union (UAW) to address the massive strikes that erupted on the evening of September 15.

According to people familiar with the matter, GM has proposed to the union that it will assign the electric pickup assembly task to the Hamtrak assembly plant in Detroit, and the battery manufacturing business will be distributed to the Los Angeles plant in Ohio. The two factories had previously planned to close or sell, and now they will pull back to the survival line. GM is clearly under pressure from the union.

GM also plans to upgrade its plants in Michigan, Tennessee and Missouri to produce new midsize pickups and crossovers. The company said it will invest in “additional new vehicles and propulsion projects” but has not mentioned anything about opening a new factory. Some analysts said that because GM still has a lot of excess capacity, it will not open any new factories for a long time to come.

According to GM's plan, a series of electric cars will be launched by 2023, but there is no clear details. It is reported that the new model will be equipped with advanced battery system and flexible, modular car structure to adapt to different models and sizes.

In the past three years, GM's annual capital expenditures averaged $8.45 billion, mostly in the North American market. In contrast, the $7 billion promised to the union is calculated on a four-year contract period with an annual investment of less than $2 billion.

GM is currently undergoing restructuring, cutting costs and investing more money in the development of electric and autonomous vehicles. Under the internal and external troubles, GM is also more than enough for the heavy burden of the trade unions.

In fact, not only does GM have the trouble of cutting jobs and cutting costs. In the first half of this year, GM, Daimler, Tesla, Honda, FCA and Audi announced layoffs, totaling nearly 38,000 workers. How to place employees and balance cost pressures has become a difficult problem for car companies.