GM spending $2B to convert Tennessee factory for electric vehicle production

General Motors announced on Tuesday that it will be investing nearly $2 billion in its Spring Hill, Tenn., manufacturing plant to build electric vehicles alongside its existing combustion-engine Cadillacs.

According to a joint press release from Tennessee Gov. Bill Lee (R), Department of Economic and Community Development Commissioner Bob Rolfe and GM officials, the move will build on the more than $2.3 billion already invested in the manufacturing center since 2010. 

The plant will also be the third of GM’s electric vehicle factories in the U.S., following its Detroit and Orion Township plants in Michigan. 

The release said that renovation and construction on the Spring Hill plant will begin immediately, with the electric Cadillac Lyriq scheduled to begin production in late 2022, according to AutoForecast Solutions (AFS), which tracks industry production plans.

“Tennessee is committed to supporting the growth of advanced manufacturing, and in the automotive sector, the focus is on electric vehicles,” Lee said in the press release. “This substantial investment by General Motors will support our efforts to become a leading state for electric vehicle manufacturing, and we thank GM, Maury County and Spring Hill for their continued partnership.” 

Reuters reported that GM also announced Tuesday that it would be investing an additional $32 million at a plant in Flint, Mich., that builds the Chevrolet Silverado and GMC Sierra heavy-duty pickups.

The automotive company is also expected to spend $100 million on shifting production of the redesigned GMC Acadia crossover from Spring Hill to a plant near Lansing, Mich., according to Reuters. 

The news comes after GM announced last month that it would be compensating Ohio $28 million in tax incentives following the closure of its plant in Lordstown. 

President Trump and several Ohio lawmakers condemned the closure, while Democrats highlighted Trump’s 2017 claim that “all the jobs were coming back” in a Youngstown speech near the facility.

Ohio Attorney General Dave Yost (R) in June demanded GM pay the state back $60 million after announcing the closure.

“Accountability is the key to good business and we’re holding GM accountable for not living up to its end of the contract,” Yost said at the time. “We demand the money that is rightfully owed to Ohio — no more, no less.”