DETROIT, Mich. (WKBN) – General Motors is hoping to retool the Equinox plant in Ingersoll, Ontario into a commercial electric vehicle manufacturing plant.
The nearly $800 million deal hinges on workers ratifying a new contract with the automaker.
The company hopes to produce their recently announced BrightDrop electric light commercial vehicle, the EV600, at the CAMI manufacturing plant.
The plant will be transformed over the next two years.
GM estimates that by 2025, the combined market opportunity for parcel, food delivery and reverse logistics in the U.S. will be over $850 billion.
According to the World Economic Forum, demand for urban last-mile delivery, fueled by e-commerce, is expected to grow by 78% by 2030, leading to a 36% increase in delivery vehicles in the world’s top 100 cities.
GM is also backing Lordstown Motors, who, like BrightDrop, produces electric work vehicles. The company recently requested a loan from the federal government to help speed up retooling at the former GM Lordstown plant.
Lordstown Motors CEO Steve Burns did not say how much money he is asking for from the U.S. Department of Energy.
The Energy Department has made similar loans to Tesla, Ford and Nissan in the past.