By Kalea Hall and Nora Eckert
DETROIT (Reuters) -General Motors is increasing production of transmissions at its Toledo, Ohio facility, shifting away from EV drive unit manufacturing toward parts for gasoline vehicles, the company confirmed Wednesday.
The transmission plant supports production of light-duty trucks made in Fort Wayne, Indiana, along with other facilities. Reuters first reported that GM would increase production at the Indiana assembly plant in early April after U.S. President Donald Trump announced 25% tariffs on auto imports.
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A spokesperson for the automaker said the production shift in Toledo is not related to tariffs.
“General Motors will revise production plans at Toledo Propulsion to support additional capacity of ICE (internal combustion engine) propulsion units in alignment with current market demand and manufacturing resiliency,” the spokesperson said in a statement.
When GM announced a $760 million investment to transform the Toledo facility into a drive unit production hub, it became its first U.S. powertrain factory repurposed for EVs. The automaker hasn’t yet produced retail drive units there.
“To align with current market demand and manufacturing needs, leadership has made the decision to add capacity to support propulsion units currently built at Toledo for ICE (internal combustion engines) products,” Rob Morris, the Toledo plant director, said in a memo shared with workers.
The memo said that one of the drive unit production lines in the facility would be transformed into a transmission line, but said there were no updates regarding the second drive unit production line.
GM has made other adjustments to its EV plans including pushing back the start of EV truck production at its Orion Assembly plant in Michigan. It fell short on its EV production goal of producing and wholesaling 200,000 EVs in North America in 2024, instead ending up at 189,000 units wholesale.
Separately, Trump’s tariffs have prompted automakers to change or expedite investment plans. Some suppliers and automakers are looking for opportunities to expand investment in the U.S. to avoid the steep levies, while others are waiting to see if the duties stick.
An analysis by the Center for Automotive Research found that Trump’s 25% auto tariffs imposed in early April will increase costs by about $108 billion for automakers in the U.S. in 2025.
The industry is still facing levies on automotive part imports, which are scheduled to begin no later than May 3.
(Reporting by Kalea Hall and Nora Eckert in Detroit; Editing by Diane Craft)
