DETROIT – Normal Motors plans to speculate greater than $1 billion in two Michigan crops for manufacturing of next-generation heavy-duty vehicles, the corporate stated Monday.

The funding consists of $788 million to arrange its Flint Meeting plant to construct the heavy-duty gasoline and diesel vehicles. One other $233 million shall be invested within the automaker’s Flint Metallic Heart to assist manufacturing of the automobiles. Each crops are situated in mid-Michigan.

Regardless of GM’s dedication to completely provide all-electric automobiles by 2035, the corporate continues to spend money on conventional automobiles such because the Chevrolet Silverado and GMC Sierra heavy-duty pickups.

The notably worthwhile vehicles are in excessive demand, and gross sales are wanted to help in funding the automaker’s investments in EVs.

A GM spokesman stated building associated to the investments is scheduled to start throughout the fourth quarter. He declined to reveal particulars and timing of the next-generation pickups.

In 2022, GM reported gross sales of its heavy-duty pickups elevated by 38% in comparison with the prior 12 months, amounting to just about 288,000 vehicles bought.

The funding announcement comes forward of contract negotiations between the Detroit automakers, together with GM, and the United Auto Employees union this summer time.

For traders, UAW negotiations are sometimes a short-term headwind each 4 years that end in increased prices. However this 12 months’s negotiations are anticipated to be among the many most contentious and essential in latest reminiscence, fueled by a yearslong organized labor motion throughout the nation, a pro-union president and an trade in transition to all-electric automobiles.

“When enterprise is booming because it has been for the previous decade — because of the exhausting work of UAW members — the corporate ought to proceed to spend money on its workforce,” UAW Vice President Mike Sales space, who oversees the union’s GM unit, stated in a launch.

UAW leaders publicly laid out their high bargaining points final week, together with reinstatement of a cost-of-living adjustment that was eradicated throughout the Nice Recession; stronger job safety; and the top of a grow-in, or tiered, pay system that has members incomes completely different wages and advantages.