For the first time in the United States, General Motors will shift one of its transmission or powertrain manufacturing plants to produce parts for electric vehicles. The automaker announced today that it will spend $760 million to allow Toledo Propulsion Systems to make electric drivetrains.

“Our team in Toledo has a long and proud history of building great products, and they’ve worked hard to earn this investment,” said Gerald Johnson, GM’s executive vice president of global manufacturing and sustainability. “This investment helps create job security for our team in Toledo for years to come and is the next step in our journey to an all-electric future.”

After the conversion, the plant will produce a family of powertrains for GM’s electric vehicles going forward the Ultium platform. Spare parts for front-, rear- and all-wheel drive cars will be produced here.

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General Motors has selected battery electric trucks as the recipients of the Toledo drivetrain. This includes the GMC Hummer EV, GMC Sierra EV and Chevrolet Silverado EV.

However, the transition to electric propulsion systems will not be complete. While building electric motors, Toledo will continue to build powertrain products for GM internal combustion vehicles.

“Our team in Toledo will continue to play a key role as we work to build on our current dominance in trucks and SUVs, as well as play a critical role in our EV growth transition” Johnson said.

Owned by GM since 1956, the plant currently produces six- and 10-speed transmissions for rear-wheel drive vehicles, as well as nine-speed transmissions for front-wheel drive vehicles. Units that fall into ChevroletBuick, GMC and Cadillac cars are produced by about 1,500 people who work at the plant.

“This investment is a recognition that UAW Local 14 members bring the skills, know-how and drive that make GM successful,” said UAW President Ray Curry. “UAW members look forward to being a part of shaping the future of General Motors.”

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