NEW YORK (AP) — General Motors plans to spend $800 million to turn a Canadian SUV plant into one that will make electric delivery vans.
Work on the plant, which is in Ingersoll, Ontario, will start immediately and take two years. The plant currently makes Chevrolet Equinox SUVs.
The electric delivery vans are part of GM’s new venture BrightDrop, which is building electric vehicles for delivery companies. The growth of online shopping has increased demand for electric vans as delivery companies look for cleaner vehicles to deliver packages.
BrightDrop’s first customer is FedEx, which will begin receiving GM’s EV600 electric vans later this year.