General Motors (GM) is making significant investments in its facilities as part of its efforts to retool and introduce more efficient internal combustion models.

The company plans to invest over $500 million in its Arlington, Texas assembly facility, which will be used to improve the stamping and assembly areas responsible for manufacturing next-generation full-size SUVs with internal combustion engines. Additionally, GM intends to invest over $1 billion in two manufacturing facilities in Flint, Michigan, to produce heavy-duty trucks with new-generation internal combustion engines.

These investments come as GM aims to provide customers with a robust selection of internal combustion vehicles, even as the company plans to end the production of gasoline-powered vehicles by 2035. By upgrading its facilities, GM seeks to enhance its manufacturing capabilities and meet the growing demand for more efficient internal combustion models.

The Canadian market is also set to benefit from GM’s investment plans. The company will allocate C$280 million ($210 million) to its Oshawa Assembly in Canada to produce next-generation full-size vehicles powered by internal combustion engines. This move reflects GM’s commitment to catering to the diverse needs of its customers while transitioning toward a greener future.

However, GM has faced challenges in meeting regulatory requirements. The company recently paid $128.2 million in penalties for failing to satisfy the requirements of the Corporate Average Fuel Economy (CAFE) program. The penalties highlight the importance of adhering to fuel efficiency standards and underscore the pressure on automakers to reduce emissions and improve fuel economy.

In line with the focus on reducing emissions, the Environmental Protection Agency (EPA) has proposed a 56% reduction in average fleet emissions by 2026. This proposal is part of the EPA’s efforts to tackle climate change and promote cleaner transportation. The automotive industry, including GM, will need to make significant strides to meet these ambitious targets and contribute to a more sustainable future.