American motor-vehicle manufacturer General Motors Co. will spend about $2 billion at its factory in Spring Hill, Tennessee. It will retrofit the plant to build next-generation electric vehicles.
General Motors says the Spring Hill plant will be upgraded to build its new Cadillac Lyriq fully electric sport utility vehicle. It will be the company's third factory making fully electric vehicles.
The Spring Hill plant currently builds three of the company's gasoline-powered SUVs - namely the XT5, the XT6 and the GMC Acadia. General Motors said manufacturing of the Acadia model would be transferred to its factory in Lansing, Michigan, while upgrades were made.
General Motors said the production of the gasoline SUVs would continue once the factory began production of the Lyriq. The carmaker originally unveiled the Cadillac Lyriq in August and said it should go into production by late 2022.
General Motors said this week it planned to spend more on four other plants in Michigan. The move is part of the company's wider plans to accelerate its electrification to meet the shifting needs of consumers and to adapt to stricter environmental regulations worldwide.
"We are committed to investing in the U.S., our employees and our communities. These investments underscore the success of our vehicles...and our vision of an all-electric future," General Motors' chairperson and chief executive Marry Barra said.
General Motors said it will be making a $3.5 million investment in its Orion Assembly plant in Michigan. The investment will be used to enable the plant to build an unannounced electric Chevrolet model. The Orion Assembly plant currently makes the company's Chevrolet Bolt electric subcompact hatchback.
Last week, General Motors announced that its factory in Hamtramck, Detroit was its so-called "Factory Zero," marking the first of many such factories in the company's future. General Motors Corp. plans to invest up to $2.2 billion in its Detroit-Hamtramck factory, which it expects to generate more than 2,200 jobs once it is fully operational.