GM to invest over $2 billion in Lansing for hybrid vehicle production
U.S. automaker General Motors plans to invest more than $2 billion in the Lansing region, including $1.25 billion to ready its assembly plant for hybrid production. The company had previously focused mainly on battery-electric vehicles.
U.S. automaker General Motors (GM) said on Tuesday that it plans to invest more than $2 billion over the next several years in the Lansing region of Michigan. Of that amount, $1.25 billion is earmarked for preparing its Lansing Delta Township Assembly plant for future vehicle production, including hybrids. The move is part of the company's effort to regain market share by responding to shifting consumer tastes.
Reworking a federal grant
GM is working with the U.S. Department of Energy to restructure a previously awarded Domestic Manufacturing Conversion Grant and redirect the money to future hybrid production at the Lansing plant. Under the Biden administration, the company was awarded $500 million to convert a different Lansing factory to build electric vehicles. According to GM, those funds were never released.
What the plant builds today
The Lansing Delta Township factory currently assembles the gas-powered Buick Enclave, Chevrolet Traverse and GMC Acadia. In 2025 it produced a record 291,000 vehicles. GM has not said when it will begin building and selling hybrids. Sources told TechCrunch to expect hybrids across several brands rather than a single model line, and Reuters, citing anonymous sources, reported that hybrid versions of the Traverse, Enclave and Acadia are planned.
A change of strategy
Hybrids have grown more popular, partly because of rising gas prices. Toyota leads U.S. hybrid sales, followed by Honda, while Ford sold some 228,000 hybrids in 2025. GM has been slow to move in this direction: until recently its only hybrid was the Chevrolet Corvette E-Ray, of which it sold 2,444 last year. That model has been discontinued, deliveries of the hybrid Corvette ZR1X began in March, and a hybrid Corvette Grand Sport X is due next year.
GM had favored battery-electric vehicles and invested billions of dollars in shifting its lineup from gas-powered to all-electric. That strategy changed under the Trump administration, with the end of the federal EV tax credit and demand growing more slowly than expected. GM has not abandoned EVs, though their sales have fallen year over year, and it still sells the Chevrolet Equinox EV, Blazer EV and Cadillac Escalade IQ. The company said it will share specific details of its hybrid plans closer to launch.
