GM Adding $71 Million at Two Ohio Parts Plants

Ken Zino of AutoInformed.com on GM Manufacturing

Toledo Transmission – GM needs 8-speed transmissions to meet fuel economy regulations.

General Motors plans to invest $71 million into two Ohio manufacturing plants, including $39 million at its Toledo transmission plant and $32 million at its Defiance casting plant. Work will begin immediately at the two locations.

These investments in what is increasingly the no growth auto business norm will enable GM to retain 240 U.S. manufacturing jobs. The Toledo investment will be used to upgrade and enhance the production of GM’s eight-speed rear-wheel-drive transmission – important for its pickup truck sales. The Defiance investment will be used to prepare the facility for future engine casting components work.

“Through these investments, GM continues to strengthen its significant manufacturing presence in Ohio,” said Phil Kienle, GM vice president of North American Manufacturing and Labor Relations.

Since 2009, GM has invested more than $3.3 billion in Ohio. Separately, GM and LG Chem formed a joint venture – Ultium Cells LLC – and together are investing more than $2.3 billion to build a new battery cell manufacturing plant in Lordstown that will create more than 1,100 new jobs. Construction of the facility is underway. The new battery cell manufacturing plant will play a critical role in GM’s evolution to an all-electric future. (GM Claims Wireless Battery Management for Future EVs, Lordstown and Lithium. A New GM Constellation is Rising)

In 2019, GM paid more than $450 million in taxable wages to employees in Ohio. GM currently has more than 3,800 employees in the state.

In addition, GM has continued its commitment to the Lordstown community by working closely with Lordstown Motors Corp. since May 2019 to support the launch of its Endurance pickup. The acquisition of Lordstown Motors by DiamondPeak (sic) Holdings Corp. is expected to close during the fourth quarter and the company will be listed on the Nasdaq. GM is investing $75 million in the company, which includes the sale of the former Lordstown Assembly plant and production equipment.

Toledo Transmission Operations opened in 1916. Plant employees produced truck transfer cases and transmissions for four- and six-wheel-drive military trucks throughout World War II. Today, about 1,700 team members manufacture and assemble GM’s six-speed, eight-speed, and ten-speed rear-wheel-drive transmissions and nine-speed front-wheel-drive transmissions that are used in a variety of Chevrolet, Buick, GMC and Cadillac vehicles. Hourly employees are represented by UAW Local 14.

Defiance Casting Operations opened in 1948 and currently employs about 580 employees. The first iron was poured at the facility on Aug. 23, 1948. Today, these team members manufacture cylinder block and cylinder head castings for inline-four, V6 and V8 engines used in a variety of Chevrolet, Buick, GMC and Cadillac vehicles. Hourly employees are represented by UAW Local 211.

About Ken Zino

Ken Zino is an auto industry veteran with global experience in print, broadcast and electronic media. He has auto testing, marketing, public relations and communications expertise garnered while working in Asia, Europe and the U.S.
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