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October 20, 2020 02:54 PM

GM to build Cadillac Lyriq, other EVs in Tennessee

Hannah Lutz
Automotive News
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    Automotive News

    Spring Hill will become GM's third EV plant.

    Detroit — General Motors on Tuesday said it will spend $2 billion to renovate its assembly plant in Spring Hill, Tenn., for electric vehicle production, starting with the Cadillac Lyriq in 2022.

    GM also announced more than $150 million in investments in five Michigan plants related to production of the GMC Acadia, heavy-duty pickups, 10-speed transmissions and autonomous test vehicles.

    The investment does not include an additional $2.3 billion investment by GM and LG Chem to build a new battery cell manufacturing plant in Lordstown, Ohio, under the Ultium Cells LLC name.

    Shares in GM rose 5.6 percent to $35.22 in midday trading.

    Spring Hill will become GM's third EV plant. It will continue building the gasoline-powered Cadillac XT5 and XT6, but production of the Acadia will move to Lansing, Mich.

    The Spring Hill plant was first developed to make GM's Saturn cars and at one point included in-house injection molding to make exterior door panels for Saturn sedans.

    The $2 billion investment will expand the Tennessee plant's paint and body shops and comprehensive upgrades for general assembly, such as new machines, conveyors, controls and tooling. The renovation will begin immediately, GM said. Spring Hill is GM's largest plant in North America.

    GM's Lansing Delta Township plant will get $100 million in updates to add the Acadia to its roster, which includes the Buick Enclave and Chevrolet Traverse.

    The automaker will spend $32 million in Flint, Mich., toward future production of heavy-duty Chevy Silverado and GMC Sierra pickups.

    GM plans to invest $17 million in Romulus, Mich., to improve automation and expand output of 10-speed transmissions used in full-size pickups and SUVs.

    GM also will spend $3.5 million at a Chevy Bolt plant in Orion Township, Mich., and $750,000 at a battery plant in Brownstown Township, Mich., for production of the Cruise AV, a self-driving test vehicle.

    "We are committed to investing in the U.S., our employees and our communities," GM CEO Mary Barra said in a statement. "These investments underscore the success of our vehicles today, and our vision of an all-electric future."

    Over the last year and a half, GM has pledged more than $4.5 billion at three U.S. plants for EV-related production, including $2.2 billion at its plant in Detroit that it's now calling "Factory Zero." Production the GMC Hummer EV pickup is slated to begin at the Detroit plant in late 2021, followed by the Cruise Origin, a self-driving shuttle.

    “The future unveiled by General Motors today is a commitment to UAW members’ future work based on their skill, sweat and craftsmanship. And we are excited about building next generation vehicles,” Terry Dittes, UAW vice president and director of the UAW GM Department, said in a statement.

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