TOLEDO, Ohio — General Motors' Toledo Propulsion Systems plant will begin to move away from electric vehicle manufacturing and instead will swap it for production of parts for gasoline vehicles.

What You Need To Know

  • General Motors said the change is due to "market demand and manufacturing resiliency"

  • EV sales continued to grow last year and the start of this year

  • It's not known when the changes will take place

GM said the change is due to market demand. 

"General Motors will revise production plans at Toledo Propulsion to support additional capacity of ICE (internal combustion engines) propulsion units in alignment with current market demand and manufacturing resiliency," GM wrote in a statement to Spectrum News 1.

It's not known when the switch will take place. 

Three years ago, the auto company announced a $760 million investment in the Toledo facility to make it a drive unit production hub. As of now, GM hasn't produced any retail drive units there. 

The move comes as President Donald Trump implements tariffs on auto products. According to the Center for Automotive Research, it's estimated that the 25% auto tariffs will increase costs by around $108 billion for U.S. automakers this year. 

EV sales reached a record high last year. EVs accounted for about 8% of new car sales in the U.S. in 2024, according to Motorintelligence.com.

Electric vehicles remain more expensive than their gasoline-powered equivalents. New gas vehicles sold for $48,039 on average last month, Kelly Blue Book data says, while EVs sold for $55,273 on average.

The Associated Press contributed to this story.

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