General Motors Toledo Propulsion Systems Shifts Focus to Internal Combustion Engine Parts
TOLEDO, OHIO — Big changes are underway at General Motors’ Toledo Propulsion Systems, as the facility shifts its production focus in response to evolving market demands. While the plant had initially prepared for a future dominated by electric vehicle (EV) production, General Motors is now adjusting its strategy to meet the growing demand for internal combustion engine (ICE) components, particularly those used in heavy-duty trucks.
Tony Totty, president of United Auto Workers Local 14, addressed the workforce, explaining that this shift is driven by current consumer preferences, rather than external factors such as tariffs. “This isn’t tariff-related, it’s market demand,” Totty stated, emphasizing that consumers are now favoring heavy-duty trucks, prompting GM to prioritize the production of ICE propulsion units at the Toledo plant.
According to an internal memo shared with employees, GM’s leadership outlined plans to increase production of internal combustion engine units at the facility, while scaling back on the production of EV parts. The memo clarified that the facility will continue producing components for electric vehicles, but certain equipment and one production line will be removed to make space for the ICE transmissions.
Totty acknowledged the shift, noting that while the company’s original vision in 2022 included a significant investment—over $750,000—to prepare the Toledo plant for EV production, the demand for electric vehicles has not materialized as expected. “The demand for EV is too soft for us to turn the switch on our operation,” Totty explained.
Despite the reduction in EV-related production, Totty remains optimistic about the future of electric vehicles and hopes that the market for EVs will eventually strengthen. For now, however, the focus on internal combustion engine components is seen as a positive move by employees, as it brings more stability to operations. Totty expressed confidence that meeting the high demand for heavy-duty truck parts would ultimately benefit the workforce.
General Motors has indicated that the production adjustments will not result in an increase in the number of jobs at the Toledo facility. A spokesperson for GM stated that the revised production plans aim to align with current market demand and ensure manufacturing resilience, without any expansion of the workforce.
While this marks a notable shift in the company’s production priorities, the decision underscores GM’s commitment to remaining responsive to the automotive market’s dynamic needs. For now, Toledo Propulsion Systems is adjusting to support the growing demand for internal combustion engine parts, even as it maintains a foothold in the electric vehicle market.
