American automobile giant General Motors (GM) seems to have hit a speed bump in its electric vehicle (EV) production plans as it has reportedly delayed the launch of EV drive units at the Toledo Propulsion Systems Plant in Ohio by several months. According to emerging reports, production of EV drive units at the Toledo Propulsion Systems Plant has been delayed from the first quarter (Q1) to the fourth quarter (Q4) of 2024.

A representative of a United Auto Workers (UAW) union revealed that the Toledo facility, which is traditionally focused on producing transmissions for internal combustion vehicles (ICEs), underwent a substantial transformation with an investment of $760 million. The retooling of the facility involved shutting down the six-speed transmission production line in April this year to make room for the new EV-dedicated assembly lines.

Initially, as already mentioned above, the Toledo Propulsion Systems Plant was expected to commence production of EV drive units in Q1 2024. However, some unforeseen circumstances and issues forced the automobile maker to have postponement it. The delay has reportedly impacted a number of permanent as well as temporary employees who have been on layoff since the spring, following the closure of the ICE transmission line.

The electric drive units produced at the Toledo production facility are very essential components for some of GM's main EVs, including the GMC Hummer EV, Chevrolet Silverado EV, and the GMC Sierra EV. Notably, the production of the Silverado EV and Sierra EV has already been postponed to 2025. The production of these EV will take place at GM's Orion Assembly Plant in Michigan.

Simultaneously, the Factory Zero facility in Detroit will keep on gradually increasing production of the GMC Hummer EV and Chevrolet Silverado EV.

At present, the Toledo facility employs approx. 1,600 workers, and the aforementioned delay affects temporary workers eagerly awaiting recall since the suspension of the ICE transmission line.

While GM hasn’t officially made any comment on whether the Toledo plant delay will have an effect on the production timelines of other EV offerings, the setback has undoubtedly prompted questions about the automaker’s broader EV strategy. From a positive standpoint, UAW Local 14 President Tony Totty sees the delay as an opportunity for a smoother launch. Emphasizing that the initial schedule for the EV drive line's launch was aggressive by retooling standards, Totty added that the delay would provide management and workers with additional time to ensure a successful and well-prepared introduction of the crucial products in the company’s electric lineup.