According to reports quoting sources and documents made public on Friday, United States based auto giant General Motors (GM) is considering investing more than $4 billion in two Michigan sites to increase its electric car manufacturing capability.
According to the report, GM has proposed developing a $2.5 billion battery facility near Lansing with partner LG Energy Solution.
Separately, the America’s largest carmaker is exploring a $2 billion renovation of its Orion Township assembly facility north of Detroit in order to produce next-generation electric vehicles. A person familiar with the strategy told Reuters that the overall investments might reach $4 billion.
According to city of Lansing documents, GM is proposing constructing a battery cell manufacturing factory in Delta Township, which could employ 1,700 people by 2028. On Monday, the Lansing City Council is slated to vote on the plan.
According to the papers, the joint venture battery plant would be 2.5 million square feet and would be built on property already held by GM, and it would "create considerable economic activity across Michigan."
In midday trading, GM shares were up 4.8 per cent to $62.50.
The Wall Street Journal has previously reported on the investment intentions.
Michigan lawmakers are pushing for swift approval of the proposals in order to improve the state's capacity to attract additional investments in electric vehicles and battery plants.
Ford Motor Company chose Kentucky and Tennessee over its home state of Michigan for new battery and electric car production in September.
Ford and South Korean battery partner SK Innovation (096770.KS) announced plans to invest $11.4 billion in the United States to establish an electric F-150 manufacturing facility and three battery factories.
If authorised, GM's investment in the two Michigan electric vehicle projects would be at least $3 billion.
According to reports, the Orion factory, which now produces the Chevrolet Bolt, will be modified to produce goods based on GM's Ultium EV platform.
After a large battery recall, GM suspended manufacturing of the Bolt in August, and the stoppage was recently extended until late January.
On Thursday, General Motors CEO Mary Barra told reporters that a decision on new facilities in Michigan and overseas might take "weeks."
It was "developing business cases for potential future investments in Michigan," but that "these projects are not approved and securing all available incentives will be critical for any business case to continue moving forward," GM said GM said in a statement on Friday.
(Source:www.cnbc.com)
According to the report, GM has proposed developing a $2.5 billion battery facility near Lansing with partner LG Energy Solution.
Separately, the America’s largest carmaker is exploring a $2 billion renovation of its Orion Township assembly facility north of Detroit in order to produce next-generation electric vehicles. A person familiar with the strategy told Reuters that the overall investments might reach $4 billion.
According to city of Lansing documents, GM is proposing constructing a battery cell manufacturing factory in Delta Township, which could employ 1,700 people by 2028. On Monday, the Lansing City Council is slated to vote on the plan.
According to the papers, the joint venture battery plant would be 2.5 million square feet and would be built on property already held by GM, and it would "create considerable economic activity across Michigan."
In midday trading, GM shares were up 4.8 per cent to $62.50.
The Wall Street Journal has previously reported on the investment intentions.
Michigan lawmakers are pushing for swift approval of the proposals in order to improve the state's capacity to attract additional investments in electric vehicles and battery plants.
Ford Motor Company chose Kentucky and Tennessee over its home state of Michigan for new battery and electric car production in September.
Ford and South Korean battery partner SK Innovation (096770.KS) announced plans to invest $11.4 billion in the United States to establish an electric F-150 manufacturing facility and three battery factories.
If authorised, GM's investment in the two Michigan electric vehicle projects would be at least $3 billion.
According to reports, the Orion factory, which now produces the Chevrolet Bolt, will be modified to produce goods based on GM's Ultium EV platform.
After a large battery recall, GM suspended manufacturing of the Bolt in August, and the stoppage was recently extended until late January.
On Thursday, General Motors CEO Mary Barra told reporters that a decision on new facilities in Michigan and overseas might take "weeks."
It was "developing business cases for potential future investments in Michigan," but that "these projects are not approved and securing all available incentives will be critical for any business case to continue moving forward," GM said GM said in a statement on Friday.
(Source:www.cnbc.com)
