General Motors is planning to invest $240 million at its Warren transmission plant to shift production of Chevrolet Volt from Mexico, slated for introduction in about two years according to Detroit Free Press.
Besides, the automaker will invest an additional $300 million in other Michigan operations by the end of this year.
The Warren investment will generate opportunity for around 580 jobs at the plant.
It also makes 6-speed transmissions for models including Chevrolet Malibu, Traverse, Equinox and Impala; the GMC Acadia and Terrain, the Buick Enclave and the Cadillac XTS.
The sale of Volt has dropped down irrespective of GM’s expectations. Sales of the EV have fallen 13 percent this year through September to 14,540. Cadillac, introduced earlier this year has sold only 885 ELRs.
Toyota has sold fewer Prius plug-ins than Volts (11,842), but that modest total is up 49 percent from last year.
Ford has sold 15,809 of its two plug-in models, the Fusion Energi and C-Max Energi, this year through September, up 19 percent from the same period of 2013.
In addition, due to the gas price decline and slow step at which consumers adopt new technology, EVs are expected to reach forefront in the market, obliging the regulatory standards for better fuel economy.
Due to global regulatory requirements, electrification is a key part in making those target which mainly focuses the customer, explained, Mary Barra, CEO.
The shift confirms Michigan’s connection to GM’s electric vehicle development. Battery packs for the Volt are assembled in Brownstown Township.
ALSO READ : General Motors Exec endorses new all-electric car
The car, along with the Cadillac ELR, which is based on the same technology, is assembled at GM’s Detroit-Hamtramck plant.
In addition, GM’s Flint engine plant builds the 1.5-cylinder, 4-cylinder gas-fueled motor for the Volt. LG Chem in Holland, Michigan, makes the battery cells.
The demand for all electric vehicles is dropping amid falling gas prices. There is a continuing price premium on most EVs because they cost more to produce than comparable gas-fueled alternatives.