GM Expected To Announce Expanded Electric Vehicle Production
General Motors Company (NYSE: GM) is planning to announce major investments that will lead to an expansion in the production of electric vehicles at its plant at Spring Hill, Tennessee plant and elsewhere, Reuters reported Monday.
What Happened: The investment announcements will come on Tuesday at a virtual event that commences at 11 a.m. ET, according to the automaker.
The Mary Barra-led company plans to build its Cadillac Lyriq electric SUVs at the Tennessee plant, the Detroit News reported Monday, as per Reuters.
The Lyriq is expected to be brought into production beginning late 2022 and the company could move manufacturing to other plants, resulting in an inflow of investments in other locations, AutoForecast Solutions, a provider of production forecasting information, told Reuters.
Why It Matters: Barra has made public plans to invest $20 billion by 2025 in EVs as well as electric vehicle battery technology, noted Reuters.
The Michigan-based automaker reportedly has plans to spend $2.5 billion in overhauling and retooling its Detroit-Hamtramck plant to build a GMC Hummer EV pickup truck, a robotaxi as well as other vehicles.
The company already manufactures its Chevrolet Bolt vehicles in Detroit, as per Reuters.
Rival Volkswagen AG (OTC: VWAGY) has plans to commence production of its ID.4 EV SUVs in Tennessee, as per CNN.
Elon Musk-led Tesla Inc (NASDAQ: TSLA) is building its latest Gigafactory in Austin, Texas, which will produce the company’s all-electric pickup vehicle, the Cybertruck.
GM and embattled EV startup Nikola Corporation (NASDAQ: NKLA) failed to close a manufacturing partnership last month.
The two companies have until December to finalize the deal.
Price Action: GM shares traded 1.2% higher to $33.75 in after-hours trading on Monday after closing 0.3% lower.
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