This is an Inflation Reduction Act program to enable vehicle manufactures to produce vehicles and products covering a broad range of the automotive supply chain, including parts for electric motorcycles and school buses, hybrid powertrains, heavy-duty commercial truck batteries, and electric vehicles.
MNA-OH PHEV Conversion and MUSe Battery System Assembly Plant Construction
- Awardee: American Autoparts, Inc (Mobis North America, LLC)
- Location: Toledo, OH
- Award: $32,617,879
American Autoparts, Inc., a subsidiary of Hyundai Mobis Co., Ltd., has launched a project to bring electric vehicle manufacturing and jobs to Toledo, OH, with total investments expected to be $65 million.
The Project consists of two phases where American Autoparts will: (1) convert its existing ICE complete chassis assembly plant located at the Stellantis Toledo Assembly Complex, into a PHEV and ICE complete chassis assembly plant, retaining 354 UAW union jobs and creating an estimated 38 new union labor jobs supporting the manufacture of a new light PHEV truck, and (2) construct a new battery system assembly plant located at the new 285,000 square-foot spec building at the Toledo Trade Centre Industrial Park, the former site of the North Town Square Mall, creating 185 new jobs and manufacturing battery packs for PHEV SUVs, PHEV light trucks and PHEV minivans. While the facility is not in operation yet, it is anticipated these workers could be represented by the UAW.
Jobs and Community Impact: Together, the Project will bring significant positive change to the greater Toledo, OH area, creating 223 new, high-quality, good-paying manufacturing jobs, 192 of which will be upskilled electrified manufacturing jobs. The Project continues American Autoparts’ commitment to Toledo, OH, which includes a labor and community benefit plan that will see American Autoparts exploring investment and collaboration opportunities with local high schools, trade schools, colleges, universities, community outreach and support programs, and the UAW Local 12 Union. The investment helps ensure a bright future for manufacturing labor in Toledo, OH.
Blue Bird Bus – Electric Vehicle Manufacturing Conversion Project
- Location: Fort Valley, GA
- Award: $79,728,146
Blue Bird Body Company intends to convert a prior Internal Combustion Engine (“ICE”) vehicle manufacturing location to a new 600,000 sq. ft. manufacturing facility for the production of zero-emission electric school buses while focusing on the education and training of its current and future workforce.
Blue Bird is recognized as a technology leader and innovator of school buses since its founding in 1927 and is the only U.S.-owned and operated school bus manufacturer Blue Bird is also the leader in Type D zero-emission school buses, having built its first EV bus in 1994, and commercially launched in 2018. There are over 2,000 Blue Bird EV buses on the road today, with over 500 delivered in the last fiscal year (ending September 30, 2023) alone.
As the largest manufacturer of Type D electric school buses in the country, Blue Bird will convert a brownfield site previously used to produce diesel-powered motorhomes to a dedicated manufacturing plant for EV and other Type D school buses. This will enable Blue Bird to meet the exponential growth of demand for EV school buses while strengthening domestic manufacturing of electrified vehicles, and the supply chain that supports that manufacturing.
This project will integrate automotive related suppliers in the area into the EV production vertical and boost the domestic supply chain of EV components. Also, Blue Bird will work with a local full-service design-build construction firm, providing an additional investment in the construction workforce in Middle Georgia.
Jobs and Community Impact: Blue Bird has been part of the Fort Valley community for nearly 100 years, which is a designated disadvantaged community. With this investment, it will be able to retain and expand its existing workforce of nearly 2,000 employees which includes union representation by the United Steelworkers who recently signed their first collective bargaining agreement with Blue Bird. In addition, Blue Bird projects adding more than 400 new, high-paying, and highly skilled jobs; upskilling the current workforce in partnership with the USW in electric vehicle technology.
Blue Bird is also committed to providing a robust Community Benefits Plan that includes training partnerships with regional high schools to create a local talent pipeline and investments in childcare to help working parents.
Cummins – Accelerating the shift to zero: Charting a path for workforce transition and community improvement toward a zero-emissions economy
- Location: Columbus, IN
- Award: $75,000,000
Cummins, a global power leader, continues to expand its technology portfolio to support customers in decarbonizing their operations, positioning itself as a leader in electrified technologies through Accelera by Cummins, its zero-emissions business segment. Accelera’s innovative solutions in batteries, traction systems, electrified accessories, and powertrain controls will help accelerate the adoption of zero-emissions heavy- and medium-duty trucks, buses and off-highway vehicles. Through Accelera, Cummins has been building electrification capabilities since 2017, now with thousands of battery-electric vehicles (BEVs) on the road that have generated more than 1.5 billion electric miles.
For this project, Cummins will invest $75 million in cost share towards a total of $150 million to convert approximately 360,000 sq. ft. of an existing manufacturing facility in Columbus, IN, the Columbus Engine Plant (CEP), to house manufacturing for zero-emissions components and electric powertrain systems.
Jobs and Community Impact: To support the additional manufacturing capacity this investment allows, Cummins anticipates adding approximately 250 new full-time jobs, with opportunities for the plant’s existing workforce, including members of the Diesel Workers Union (DWU) and Office Committee Union (OCU) to transition to these positions over time. When combined with the approximately 100 BEV-related jobs that exist at CEP today, total BEV-related jobs would be approximately 350 once the project is completed.
Cummins provides graduation coaches for high school students in this area to increase graduation rates, and it provides good paying jobs across a variety of disciplines. The site has also improved the local environment, reducing greenhouse gas emissions by approximately 30% since 2018, with a target to reduce emissions by an additional 50% by 2030.
The ripple effect of the expansion of BEV-related work at CEP reaches far beyond the facility’s walls – it’s a crucial step in advancing vehicle electrification, domestic battery supply chains, and environmental sustainability. The electric powertrains produced here will result in a greenhouse gas emissions reduction of approximately 104 million metric tons of carbon dioxide by 2030.
This project stands as a testament to Cummins’ dedication to innovation, community welfare and environmental stewardship, making a significant contribution to the local community and the broader goals of sustainable transportation.
Fiat-Chrysler Automotive – Conversion of Belvidere Assembly Plant to a Vehicle Assembly Complex for Electrification
- Location: Belvidere, IL
- Award: $334,763,050
Fiat Chrysler Automobiles (FCA) US will convert the idled Belvidere Assembly Plant (BVAP) to a Vehicle Assembly Complex for Electrification (the Project). This ambitious undertaking intends to restore operations at BVAP and transition its operations from producing traditional internal combustion engines (ICE) vehicles to assembling electric vehicles (EVs). This shift aligns with FCA’s commitment to spearhead the automotive industry’s electrification revolution.
Job and Community Impact: Through this project, FCA will reopen BVAP to restore nearly 1450 UAW jobs and provide opportunities to participate in the automotive industry’s shift to electrification. The Department of Energy will work with FCA to reopen the facility, reflecting the commitment in the current collective bargaining agreement. The Project intends to revitalize automotive employment in the Belvidere community and to significantly further the adoption and advancement of EV technologies in the U.S. automotive industry.
The Project is anticipated to incorporate significant upgrades to BVAP’s infrastructure, including the installation of new equipment, utilities, and foundational enhancements to support the advanced manufacturing processes of EVs. The Project, as proposed, would re-employ approximately 1,450 unionized and highly skilled employees.
As part of this project, FCA intends to leverage and expand its existing robust U.S. supply chains with the majority of the components for production anticipated to come from within North America. The Project’s commitment to prioritizing procurement of domestic upstream supply chain materials is backed by the Company’s broader investment in the U.S. EV manufacturing supply chain, which includes activities such as investing in mining operations to improve the availability of domestically sourced critical minerals for EV batteries and battery manufacturing within North America.
By facilitating the transition from ICE to EVs, the Project allows FCA to partner with the UAW to upskill employees experienced in ICE vehicle assembly. Additionally, by switching to EV manufacturing, the Project will significantly lower life cycle greenhouse gas (GHG) emissions compared to gasoline-powered vehicles and generate a significant and ongoing positive economic change in the local area through direct, indirect, and induced employment.
Fiat-Chrysler Automotive – Conversion of Indiana Transmission Plant for Electric Drive Modules
- Location: Kokomo, IN
- Award: $249,999,999
Fiat-Chrysler Automobiles (FCA) US proposes to convert the Indiana Transmission Plant (ITP) to initiate production of Electric Drive Modules (EDMs) to increase e-motor capabilities for incorporation into electric vehicles (EVs). This project will transition the plant’s manufacturing processes from internal combustion engine (ICE) technologies to electrified alternatives. By making these strategic changes, FCA US LLC intends to significantly further the adoption and advancement of EV technologies in the U.S. automotive industry.
Jobs and Community Impact: The Project is anticipated to result in the retention and upskilling of 585 employees, all of which are UAW employees, to be part of the new EDM and e-motor manufacturing processes at ITP. The remaining ITP employees will continue to be part of FCA manufacturing operations for FCA vehicles.
The Project will support the local Kokomo community by providing new job training for employees and additional employment opportunities for diverse contractors. The commitments toward these goals include partnering with local organizations and investing in engagement strategies for the benefit of the local communities and FCA employees.
General Motors – EV Conversion
- Location: Lansing, MI
- Award: $500,000,000
General Motors LLC (GM) proposes to convert its Lansing Grand River Assembly Plant (LGR), located in Lansing, MI, from producing internal combustion engine (ICE) vehicles to producing efficient electric vehicles (EVs). Constructed in 1999, LGR began assembling ICE vehicles in 2001. Refurbishment and retooling of the facility will allow GM to produce new electrified models and enable the facility to be considered for future EV programs.
GM production lines will further support and benefit from important investments in a US battery supply chain, accelerating commercialization of advanced, affordable EVs. In addition to battery investments, GM intends to continue utilizing its existing supply chain partners for commonalities and will continue to leverage GM’s scale to invest in a robust North American supply chain.
Job and Community Impact: This investment supports a strong future for this facility and its workforce, estimated to retain over 650 jobs while creating 50 new jobs. GM’s hourly workforce at the LGR site is 100% unionized with United Auto Workers. Partnering with the UAW, GM will help train workers with new skills needed at the facility for manufacturing world class EVs.
As a long-standing member of the Lansing community, the continued operation of this facility will provide impacts across region. GM’s engagement strategy includes coordinated meetings with locally impact groups, negotiating community benefits agreements, and ensuring high quality, good paying job creation. In addition to direct benefits, the conversion project will generate trade jobs and allow GM to diversify its contract and vendor network within the state of Michigan.
Harley Davidson – EV Conversion
- Location: York, PA
- Award: $89,000,000
arley-Davidson will expand its 650,000 sq. ft. facility in York, Pennsylvania for EV motorcycle manufacturing by incorporating new paint and assembly equipment, retaining and re-training its over 1,300 union workforce and hiring over 125 workers and pledging meaningful community and workforce enhancements.
This project shows Harley-Davidson’s commitment to electrification and builds on its already significant commitment to EVs, which started in 2014. In coordination with its affiliate, LiveWire, Harley-Davidson will increase production of existing LiveWire EVs and begin commercially producing additional Harley-Davidson and LiveWire branded EVs. Annual production will ramp up through 2033 and beyond. This growing EV portfolio will target a wide variety of end consumers and capitalize on the strength of the Harley-Davidson brand globally. Harley-Davidson will incorporate sustainable materials, energy efficient assembly equipment and waste reducing paint technologies.
With this grant, Harley-Davidson can invest in the existing York facility to accelerate placed-in-service dates, utilize and expand its experienced workforce and guarantee supply chain continuity — all of which expedites the U.S. transition toward EVs by creating more affordable, faster-charging EV options for customers. The manufacturing process will incorporate components from two Harley-Davidson owned, unionized facilities in the United States, specifically, electric powertrain units from Milwaukee, Wisconsin and fabricated and painted bodywork from Tomahawk, Wisconsin. As such, in addition to the York County job creation, Harley-Davidson will continue to employ highly skilled, unionized workers in Wisconsin to directly support the Company’s EV expansion efforts.
Jobs and Community Impact: Through these once-in-a-generation investments, Harley-Davidson will retain its York facility’s longstanding, skilled and unionized workforce at wages exceeding the 95th percentile for the area and industry, consistent with its existing union agreement with the International Association of Machinists and Aerospace Workers. Harley-Davidson will also hire construction workers at prevailing wages for the applicable facility conversion efforts. Under this grant, Harley-Davidson has committed to supporting its workforce and the surrounding community by pledging meaningful investments in supplemental transportation, daycare and mental wellbeing resources.
Volvo – Conversion of Commercial Trucks from Fossil Fuel to Zero Emissions
- Locations: Macungie, PA; Dublin, VA; Hagerstown, MD
- Award: $208,224,054
The Volvo Group and its Mack and Volvo brands are leaders in medium- and heavy-duty (HD) truck transport solutions, offering a variety of high-quality, innovative, and reliable trucks to their customers. The Volvo Group is driven by a vision to shape the future of sustainable transportation and is committed to its product portfolio being 100% fossil fuel-free by 2040.
The proposed project will upgrade/re-equip three (3) Volvo Group manufacturing facilities that supply and build all Mack and Volvo branded HD trucks for North America located in Macungie, PA; Dublin, VA; and Hagerstown, MD. The upgrades enable a novel manufacturing approach that will significantly increase the production capacity potential of battery electric vehicles (BEV)/fuel cell electric vehicles (FCEV). The upgrades will make BEV and FCEV trucks more efficient to produce and thus more cost-effective for the marketplace. These upgrades, among other factors, will enable increasing from two (2) BEV Class 8 truck models to a significantly increased production capacity and a complete Class 8 BEV/FCEV truck model line including updated BEV versions (with increased efficiency and range).
Job and Community Impact: This funding will help Volvo Group sustain the 7,900 existing union jobs in the U.S. while creating 295 new jobs. It also supports the company’s goal of retaining, retraining, and expanding its UAW represented workforce (and indirect jobs with suppliers) in the transition to clean energy technologies (e.g., BEV, FCEV). In addition, Volvo Group will work with the United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) and local community colleges to retain and retrain its workforce. These three communities have a long history of truck manufacturing and will be supported by this project through investments in local workers, apprenticeships, and job training.
