General Motors is converting some of its electric vehicle (EV) component production at its Toledo, Ohio, U.S. plant to produce internal combustion engine (ICE) transmissions. This is a move to meet the growing demand for light pickup trucks produced at its Fort Wayne, Indiana, assembly plant, and the transmissions produced at the Toledo plant will be installed in those vehicles.
General Motors has decided to convert one of its production lines for electric drive units (EDUs) used in electric vehicles to produce automatic transmissions for gasoline vehicles. This has drawn attention as it coincides with President Donald Trump’s recent imposition of a 25% tariff on imported cars, but General Motors has drawn the line that this move is unrelated to tariff policy.
A General Motors spokesperson indicated that the company is modifying its production strategy to align with robust demand and existing manufacturing capabilities, stating that the move comes as the automaker responds to growing interest in internal combustion engine (ICE) powertrains. In a memo to employees, Toledo Plant Manager Rob Morris noted that one of the Electric Drive Unit (EDU) lines will be repurposed for transmission production, while the fate of the remaining lines is yet to be determined.
Meanwhile, General Motors is also adjusting its EV production plans. The planned start of electric pickup truck production at the Orion, Michigan plant has been delayed, and the 2024 North American EV production target of 200,000 units has fallen short of initial expectations, reaching only 189,000 units. Experts are predicting that President Donald Trump’s recent 25% import tariff on imported cars will result in huge costs for automakers in the US. The Center for Automotive Research (CAR) analyzed that this measure will cost the US auto industry an additional $108 billion in 2025.
