General Motors is restructuring its Toledo Propulsion Systems plant to shift its focus toward fuel engine production, replacing an electric engine line in order to adapt to market trends, as stated in a company communication.
On Wednesday, the company disclosed plans to increase transmission production at the Toledo, Ohio plant while transitioning from manufacturing EV drive units to focusing on components for gasoline-powered vehicles.
Reports initially suggested that GM planned to increase production at the Indiana assembly plant following the imposition of 25% auto import tariffs by U.S. President Donald Trump.
A spokesperson for the automaker clarified that the production changes at the Toledo plant were not influenced by the tariffs. General Motors is updating its production strategy for Toledo Propulsion to expand capacity for internal combustion engine (ICE) propulsion units, aligning with current market demands.
GM has not provided an exact timeline for the transition. In the coming weeks, the removal of the EDU production phase/line 1 will commence, creating space for the installation of equipment and tooling required for the production of additional AB1V units that support the company’s truck lineup.
GM has not disclosed the investment required for the transition. The transmissions will support increased truck production at the company assembly plants in Fort Wayne, Indiana, and Arlington, Texas. In 2021, GM revealed its last transmission-focused investment in Toledo operations, allocating $75 million to expand the production capacity of 10-speed transmissions for its full-size trucks.
In a memo to employees, Rob Morris, the plant director, clarified that the company has chosen to expand its capacity to meet the current market demand for ICE products.
The memo also mentioned that the second drive-unit production line would remain unchanged.
Additionally, GM revised its EV strategy by postponing the launch of EV production at the Orion Assembly Plant in Michigan. The company also fell short of its goal to produce and wholesale 200,000 EVs across North America by 2024, achieving a total of only 189,000 units instead.
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