General Motors has confirmed that it will invest $71 million combined into two of its Ohio manufacturing facilities.
The automaker said Monday that it will invest $39 million at its Toledo transmission plant and $32 million at its Defiance casting plant. The Toledo plant investment will be used to “upgrade and enhance the production of GM’s eight-speed rear-wheel-drive transmission,” while the Defiance investment “will be used to prepare the facility for future engine casting components work.” Work at both facilities is expected to begin immediately.
“Through these investments, GM continues to strengthen its significant manufacturing presence in Ohio,” said GM’s vice president of North American Manufacturing and Labor Relations, Phil Kienle. “Our Toledo and Defiance teams continue to focus on building world-class products for our customers and these actions are an investment in their futures.”
These new investments will “enable GM to retain 240 good-paying U.S. manufacturing jobs,” the automaker said, but did not confirm if they would create any additional positions. The automaker has invested more than $3.3 billion in the state of Ohio since 2009 and currently has more than 3,800 people employed in the state,
Officials in Ohio had previously come down on GM over its decision to close the Lordstown Assembly plant and sell the facility to up-and-coming electric vehicle maker Lordstown Motors. The state demanded the automaker repay the $60 million in tax breaks that it previously was given in exchange for keeping the plant open, but GM hoped it would be able to work out a deal with the state in which it committed to other, future investments rather than repaying the full $60 million. GM will now repay $28 million to the state of Ohio, including $12 million to fund community support programs in the Mahoning Valley area.
In addition to these most recent investments, GM is also currently building a large new battery manufacturing plant in Ohio as part of a joint venture with supplier LG Chem. The two companies will together invest more than $2.8 billion in the plant, which will employ more than 1,100 people. Battery cells manufactured at the LG Chem plant will be used in future GM electric vehicles such as the Cadillac Lyriq and GMC Hummer EV.