Washington promotes conversion of US car plants

The eleven factories are located in Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia. General Motors, Stellantis, Volvo, Blue Bird, Harley Davidson, Cummins, and ZF are among the programme’s beneficiaries. As suppliers Cummins and ZF are also on the list, the US government apparently wants to keep automotive factories open and ensure their supply chain.

ZF and its US subsidiary ZF North America will receive 157.7 million dollars “to convert a portion of its Marysville, MI facility from internal combustion engine (ICE) driveline component production to electric vehicle components to meet potential future customer orders.” Cummins Electrified Power will get 75 million dollars “in cost share towards a total of $150 million to convert approximately 360,000 sq. ft. of an existing manufacturing facility in Columbus, IN.”

The two major car manufacturers, GM and Stellantis, will receive the largest individual budgets by far. In the case of General Motors, Washington will support the conversion to EV production at the plant in Lansing, Michigan, which has already been decided. As reported, electric Cadillacs and Chevrolets will be built at the Lansing Grand River vehicle plant in future. The Ultium Cells battery cell factory in Lansing is not part of the grant, but it is supported by other programmes.

“GM’s investment and this Department of Energy grant underscore our commitment to US leadership in manufacturing and innovation, making sure we’re competitive at home and abroad,” said Camilo Ballesty, GM vice president of North America Manufacturing and Labor Relations. “Our Lansing Grand River team produces incredible vehicles for our customers, and we’re proud to bring our commitment to performance and quality into our EV future.”

For Stellantis, the funding totals $584 million, but is split between two plants: The transmission plant in Kokomo, Indiana, will be converted for the production of electric drives with almost 250 million euros. And at the conversion of the vehicle plant in Belvidere, Illinois, EVs will roll off the production line in future – subsidised with 334 million dollars.

The US government also wants to electrify commercial vehicles, and not just with electric axles from Cummins. Blue Bird Bus will receive 89 million dollars to convert its assembly line to electric buses. In the case of the Volvo Group, the US government will fund the production of fuel cell trucks for the Mack and Volvo brands with over 200 million dollars.

The ‘Domestic Manufacturing Conversion Grants‘ programme was announced about a year ago. Priority will be given to projects that either refurbish or convert production facilities or plants that have recently closed or are expected to cease operations soon. According to the government, the aim is to preserve existing jobs.

“There is nothing harder to a manufacturing community than to lose jobs to foreign competition and a changing industry,” said US Secretary of Energy Jennifer M. Granholm. “Even as our competitors invest heavily in electric vehicles, these grants ensure that our automotive industry stays competitive—and does it in the communities and with the workforce that have supported the auto industry for generations.”

energy.gov, energy.gov (list), gm.com