GM shifting Toledo plant away from EV drive units, adding another transmission line
Posted By: Toledo Blade on April 24, 2025. For more information, please click here to read the source article.
General Motors is pivoting its Toledo Propulsion Systems facility away from electric vehicles, increasing the plant’s capacity by switching one of its electric drive unit lines to produce transmissions for fuel engines.
The change, announced in a message from the plant’s director, Rob Morris, was made by GM leadership “to align with current market demand.” The production plans will shift to increase production of 10-speed transmissions as a result of “continued strong demand” for the company’s full-size trucks.
The facility, in the 1400 block of West Alexis Road, currently has three transmission production lines and two electric drive unit production lines. One of the electric lines was installed in 2022 and never put into production. Equipment will begin being removed “over the next several weeks” to make room for the installation of tooling for transmission production, which will increase the production capacity at the plant.
Tony Totty, president of UAW Local 14, said the announcement that the line will be put into production is exciting for the union’s membership.
“Our facility has always done its best when we run at full capacity, and to have floor space not being used because of the EV was discouraging,” Mr. Totty said. “Now that we’re going to utilize that floor space for transmission production, our members are very happy with the news. … It was a waste not to use our membership as a work force.”
Toledo Mayor Wade Kapszukiewicz said he is encouraged by GM’s continued investment in the Toledo Propulsion Systems facility and its work force.
“My biggest takeaway is that our employees can do anything. Now that the market has changed and they want to reposition back toward the internal combustion engine, they know that our employees can do that better than anyone,” Mayor Kapszukiewicz said.
The changes in the Toledo plant’s production is indicative of the company’s renewed focus on fuel-powered vehicles, after slower-than-expected growth in demand for electric vehicles, Mr. Totty said.
“It’s more than just us here locally, it’s a major shift within the industry. Everybody made these big investments on electric vehicles because it was subsidized by the last administration, and this new administration is pulling back those subsidies,” Mr. Totty said. “Because of that, General Motors is making a market adjustment.”
Those shifts could cause a ripple effect up the supply chain, as more production shifts toward gas-powered vehicles.
“When you look at the supply chain, we are at the beginning of the process of a vehicle. So if you’re changing us, what are you changing further down the supply chain? There would logically be adjustments with other facilities if you’re changing us,” Mr. Totty said.
GM pledged $760 million in 2022 to make its Toledo plant a hub for electric drive systems, announcing it would be the first to be refitted to produce the parts.
Those plans were delayed in December, 2023, as a result of a delayed rollout of GM’s Chevrolet Silverado EV and GMC Sierra EV because of slower-than-expected consumer demand for EVs.
The message to employees said the company did not have any updates regarding the line currently producing electric drive units, but said, “project decisions and timing will continue to be guided by customer demand.”
GM currently offers 9 EVs as part of its lineup: the GMC Sierra EV, HUMMER EV, and HUMMER EV pickup; the Cadillac LYRIQ, CELESTIQ, and Escalade IQ; and the Chevrolet Equinox EV, Blazer EV, and Silverado EV.
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