GM Plans Over $2 Billion Investment in Lansing Plant for Hybrid Production, Restructures Federal Grants
General Motors announced a plan to invest more than $2 billion in the Lansing area, Michigan, with $1.25 billion allocated for preparing hybrid vehicle production, while working with the U.S. Department of Energy to restructure a previously awarded but unreleased $500 million electric vehicle conversion grant.
General Motors stated on Tuesday that it plans to invest more than $2 billion in the broader Lansing region of Michigan over the next several years, including $1.25 billion to prepare its Lansing Delta Township Assembly plant for future hybrid vehicle production. This move marks a significant adjustment in capital allocation strategy by the Detroit-based automaker as it responds to shifting consumer preferences toward hybrids amid declining sales volumes.
The company said it is working with the U.S. Department of Energy to restructure a Domestic Manufacturing Conversion Grant previously awarded under the Biden administration. The original $500 million grant was intended to support converting a different Lansing factory to produce electric vehicles, including battery-electric, plug-in hybrid, and hydrogen fuel cell models. According to GM, those funds were never released and will now be redirected to hybrid production at the Delta Township facility.
Currently, the Lansing Delta Township plant assembles gas-powered Buick Enclave, Chevrolet Traverse, and GMC Acadia models, producing a record 291,000 vehicles in 2025. While GM has not provided specifics on when hybrid vehicles will begin production and sales, insiders told TechCrunch to expect hybrids across multiple brands rather than a single vehicle line. A Reuters report, citing anonymous sources, indicated plans to build hybrid versions of the Chevrolet Traverse, Buick Enclave, and GMC Acadia at the factory.
Hybrid vehicles have become increasingly popular in the U.S. due to rising gas prices. Toyota leads the market in hybrid sales, followed by Honda. Ford also gained considerable market share, selling approximately 228,000 hybrids in 2025. In contrast, GM had previously bet heavily on battery-electric vehicles, investing billions to shift its portfolio away from internal combustion engines. However, this strategy changed under the Trump administration with the end of federal EV tax credits and slower-than-expected demand. GM continues to sell numerous battery-electric vehicles but is now pivoting its product mix toward hybrids.