Please ensure Javascript is enabled for purposes of website accessibility

General Motors Will Spend $2 Billion to Convert a Third U.S. Plant to Electric Vehicles

By John Rosevear – Updated Oct 20, 2020 at 11:53AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The former Saturn factory in Tennessee will begin building an electric Cadillac in 2022.

General Motors (GM -4.37%) said today that it will spend $2 billion to convert a Tennessee factory to build electric vehicles (EVs), starting with the upcoming battery-electric Cadillac Lyriq SUV.

The plant in Spring Hill, Tennessee, once the home of GM's now-discontinued Saturn brand, will become the third U.S. GM factory dedicated to EV manufacturing once extensive renovations are complete. 

GM currently builds the battery-electric Chevrolet Bolt at a plant in Orion Township, Michigan, and plans to add at least one more EV there. The company announced in January that it is spending $2.2 billion to convert a second plant, near Detroit in the city of Hamtramck, to all-EV production. The company plans to spend at least $20 billion by 2025 to bring a new range of EVs to market in the United States. 

A prototype Cadillac Lyriq, a sleek electric luxury SUV.

GM said that it will spend $2 billion to build the electric Cadillac Lyriq and other EVs at its Spring Hill, Tennessee, factory. Production is expected to begin in 2022. Image source: General Motors. 

GM also announced a series of smaller investments in five other U.S. plants on Tuesday, including $3.5 million at Orion Township related to the Bolt-based Cruise AV self-driving taxi. 

"We are committed to investing in the U.S., our employees and our communities," CEO Mary Barra said in a statement. "These investments underscore the success of our vehicles today, and our vision of an all-electric future."

The $2 billion investment in the Spring Hill plant will cover extensive renovations including expanded paint and assembly facilities, and new tooling. The plant is expected to begin building the Cadillac Lyriq in 2022. 

John Rosevear owns shares of General Motors. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.