In 2022, GM said it would invest $760 million at the plant to prepare it to make drive units that will be used in future GM electric vehicles, and was GM’s first U.S. powertrain or propulsion-related factory transformed for EV-related production. The move comes at a time when uncertainty around potential tariffs on imported vehicles and parts have prompted automakers to make difficult decisions around supply chains and production plans, but GM said this move is unrelated to tariff concerns.

General Motors (GM) plans to ramp up transmission production at its Toledo facility in Ohio, a move that marks a shift from its earlier focus on electric vehicle (EV) drive unit manufacturing, reported Reuters.

A General Motors Co. plant in Toledo is beefing up capacity to build transmissions for gas-powered trucks while pulling out some equipment that had been installed recently to make drive systems for electric vehicles. GM informed workers at the Toledo Propulsion Systems plant of the changes on Wednesday. The plant recently got a $760 million upgrade to make drive units for battery-powered trucks like the Chevrolet Silverado EV and GMC Hummer EV. But those new production lines never ramped up amid slower-than-expected demand for electric vehicles. "General Motors will revise production plans at Toledo Propulsion to support additional capacity of ICE propulsion units in alignment with current market demand and manufacturing resiliency," GM spokesperson Kevin Kelly said in a statement. The plant is expected to beef up transmission production for GM's heavy-duty truck line. Chevrolet Silverado HD sales were up more than 12% in the first quarter compared to last year, with GMC Sierra HD up 9%.