GM-UAW agreement secures $8 billion in US EV investments
General Motors has committed to investing over $8 billion into its US electric vehicle efforts, as part of its tentative agreement with the United Auto Workers (UAW), Kallanish reports.
The investments are included in the recently-won GM-UAW agreement, which has yet to be ratified by the union’s voting members. A total of 13 EV ventures are listed as investment recipients, with GM expected to spend roughly $8.45 billion across its facilities.
While many of the investments were previously announced by GM, the UAW’s bargaining committee put the language in place to secure them. As such, GM’s Orion assembly plant in Michigan is set to receive a $4 billion investment, while the Spring Hill assembly plant in Tennessee will receive $2 billion.
The Spring Hill facility, which currently builds the Cadillac Lyriq, is slated to produce two additional EVs. Meanwhile, $760 million will be allotted to GM’s propulsion plant in Toledo, Ohio, bolstering drive unit production.
A GM spokesperson told Kallanish on Monday that the company is “pleased that the new tentative agreement allows us to continue to invest in our US manufacturing footprint and provide good jobs for our team members.”
Six additional facilities will receive EV investments between $8m and $154m, strengthening battery cooling lines and various automotive production efforts. The UAW document also includes GM’s Factory Zero under the investment list, as the facility will produce GM’s forthcoming full-size electric SUV.
Through its negotiations, the UAW was also able to secure new investments. GM agreed to invest $1.25 billion into the Lansing Grand River plant and $391m into the Fairfax Assembly plant, with the funds earmarked for future EV production.
Additionally, the UAW secured wins for its EV battery plant workers. Individuals working at an Ultium Cells plant – a JV between GM and LG Energy Solution – will become GM employees under the National Agreement. In its document for hourly workers, the UAW says Ultium production workers will receive an “immediate pay increase of at least $6 to $8 an hour.”
In the same document, the UAW also noted that a new performance standard has been created around lithium-ion batteries, aiming to bolster workplace safety. Ultium Cells will also have a supplemental agreement covering health and safety and skilled trades, according to the UAW.
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