General Motors Company (NYSE:GM) is delving deeper into the electric car space. The company is ramping up investments as it seeks to expand the production of electric vehicles to keep up with growing demand and competition.
GM Electric Cars Push
Immediate reports indicate the company plans to start building the Cadillac Lyriq electric SUV at the Spring Hill Tennessee plant. If everything goes as planned, Lyriq production should go into mass production in late 2022. The company currently builds electric Chevrolet Bolt at an assembly plant in the northern suburbs of Detroit.
General Motors is reportedly opened to moving production to other plants in a bid to ramp up production. Expansion into other plants could see the company making significant investments to other plants as the automaker looks to produce as many electric vehicles to rival industry leaders of the likes of Tesla Inc. (NASDAQ:TSLA).
Chief Executive Officer, Mary Barra, has already confirmed plans to invest up to $20 billion as part of an effort to strengthen GM’s ambitions around electric vehicles. The company is also looking to enhance its vehicle battery technology. The push comes barely a month after the company invested close to $2 billion on Nikola as it also seeks to strengthen its ambitions on fuel cell technology.
Gasoline Cars Focus
The automaker has already confirmed plans to spend up to $2.5 billion in overhauling and retooling the Detroit Hamtramck factory. The restructuring will allow the company to focus on the development of the GMC Hummer EV electric pickup truck, an automated robotaxi, among other electric cars.
Amid the increased focus on electric cars, General Motors do not intend to go slow on its fossil fuel cars. The company is already ramping up investments in its gasoline-fueled pickup trucks and sport utility vehicle from which it generates a good chunk of its profits. Investments in gasoline trucks and sport utility cars should allow General Motors to generate a sufficient amount of cash flow to pursue its electric car ambitions.