Benzinga | Jan 19, 2022 03:47AM EST

GM Secures $1.3B Tax Break For Orion EV Assembly Plant Expansion

General Motors Co (NYSE:GM) has secured a tax break on its proposed $1.3 billion investment to expand the Orion assembly plant for building electric vehicles, the Detroit Free Press reported on Tuesday, citing an Orion township trustee.

What Happened: GM had earlier this month filed an application with the Orion Township, seeking tax abatement. The automaker plans to start the expansion in July and finish the construction by December 2025.

See Also: GM Raises 5-Year EV Investment Target To $35B, Following In Ford's Footsteps

The Orion Assembly Plant expansion would create or retain about 2,000 jobs for the legacy automaker.

Why It Matters: The Detroit-based legacy automaker is pumping in $35 billion through 2025 to develop electric and autonomous vehicles. It has set an aggressive target to launch 30 all-electric models globally by 2025.

Legacy rival Ford Motor Co (NYSE:F) has set similar targets and investment plans to catch up in the electric vehicle race, in which industry disruptor Tesla Inc (NASDAQ:TSLA) has a huge lead.

Price Action: GM shares closed 3.8% lower at $58.8 a share on Tuesday.

See Also: GM's Silverado EV's Fully-Loaded, Top Variant Sold Out In Minutes, Says CEO

Photo: Courtesy of GM