With electric vehicles struggling to support medium-term profits, General Motors announced an investment of more than $500 million to produce the next-generation internal combustion engine SUV

CTOnews.com, June 13-General Motors announced yesterday that it plans to invest more than $500 million (CTOnews.com Note: currently about 3.575 billion yuan) at its Arlington assembly plant in Texas to prepare for the production of the next-generation full-size SUV for internal combustion engines, details of which will depend on discussions with local government officials.

▲ Touyuan Pexels General Motors previously announced that it would achieve its target of producing 1 million electric vehicles a year by 2025, but electric vehicle production is difficult to improve the company's medium-term profitability due to the high cost of components such as batteries. As a result, the company decided to continue to focus on and produce currently well-sold SUV and other models with internal combustion engines to strengthen its revenue base.

Gerald Johnson, GM's senior vice president for global production and sustainability goals implementation, said: "investing in future full-size SUV production of internal combustion engines reflects both our long-standing commitment to our customers and recognition of the efforts of our Arlington plant staff, who broke the production record this year."

Arlington is currently responsible for the production of full-size SUV for Cadillac, GMC and Chevrolet. GM has invested more than $2 billion (currently about 14.3 billion yuan) in the plant since 2013. GM has the largest market share of full-size SUV in North America, and such models are also an important source of profit for the company.

If the investment is successfully completed, GM's cumulative investment commitments in parts and plants in the United States over the past decade will exceed $31 billion (currently about 221.65 billion yuan).