GM to Invest $2 Billion in Lansing as It Redirects a $500 Million Grant to Hybrids

General Motors said on October 27 that it will invest more than $2 billion in the Lansing, Michigan region over the next several years, including $1.25 billion to prepare its Lansing Delta Township Assembly plant for future vehicle production. The company is also working with the U.S. Department of Energy to redirect a previously awarded $500 million grant toward hybrid production at the factory.

The grant’s history explains the shift. It was awarded under the Biden administration as a Domestic Manufacturing Conversion Grant to support converting a different Lansing factory to produce electric vehicles, including hybrids, battery-electrics, plug-in hybrids and hydrogen fuel-cell vehicles — but the funds were never released, according to GM. Redirecting them to hybrids is the latest sign that GM is shifting strategy as EV demand slows.

The plant currently assembles the gas-powered Buick Enclave, Chevrolet Traverse and GMC Acadia, and produced a record 291,000 vehicles in 2025. GM did not say when hybrid production would begin or which models would be built there. Reports citing insiders and anonymous sources expect hybrids across multiple brands, including hybrid versions of the Traverse, Enclave and Acadia — but that lineup is reported, not confirmed by GM, so treat it as the likely direction rather than a product announcement.