General Motors Co. has announced plans to retool its Lansing Delta Township facility in Michigan for the production of hybrid-electric vehicles. The company will utilize a $500 million grant from the Department of Energy to facilitate this transition, as detailed in a press release issued on October 27.
Originally intended for electric vehicle conversion, the Department of Energy has redirected the grant to support the plant’s shift to hybrid manufacturing, according to the release.
Current Operations and Upcoming Changes
Currently, the Lansing facility manufactures three-row SUVs, such as the Chevrolet Traverse, Buick Enclave, and GMC Acadia. Details regarding the specific hybrid models and their production timelines have yet to be disclosed.
This initiative aligns with GM’s wider strategy to enhance U.S.-based manufacturing. The Lansing project is part of a larger regional investment exceeding $2 billion over the coming years. This includes a previously announced $1.25 billion allocation to modernize the plant for future vehicle production. In July, GM revealed plans to invest approximately $9 billion in its U.S. manufacturing network and over $7 billion in domestic research and development.
Grant Details and Historical Context
The $500 million grant was initially awarded to GM in 2024 as part of former President Joe Biden’s Investing in America Agenda. Funded by the Inflation Reduction Act, this initiative allocated $1.7 billion to support at-risk automotive manufacturing sites. Stellantis also received substantial funding, including $335 million to retool its closed Belvidere assembly plant in Illinois and an additional $250 million to convert its Kokomo, Indiana transmission facility for electric drive module production.
In 2025, the Trump Administration temporarily halted certain EV-related funding and eliminated the $7,500 federal tax credit effective September 30, 2025. That October, the DOE canceled over 300 energy-related awards. At that time, the status of GM’s grant remained undecided, leaving the project in limbo until the recent restructuring announcement.
The Lansing plant achieved a milestone in 2025, producing over 291,000 vehicles, its highest annual output to date.
“Lansing’s strength starts with its people. Their skill and experience are why we continue to invest here,” said Mike Trevorrow, senior vice president of global manufacturing at GM, in a statement. “We’re building on what this team does well today while preparing for what customers will need in the years ahead. That means investing in our people, our facilities, and the ability to build a broad range of vehicles.”