Brownstown, Mich. — With most of the recent news surrounding General Motors Corp. (GM) consisting of plant closings and downsizing, a signal that the company may be on the rebound can be seen in its recent leasing of a 166,144-square-foot industrial facility in the Detroit suburb of Brownstown. The company plans to use the facility, which is located at 20001 Brownstown Center within Brownstown Business Center, as a battery pack assembly plant that will manufacture lithium-ion batteries primarily for the company’s first extended-range electric vehicle, the Chevrolet Volt.
GM plans to invest $43 million to lease, renovate and retool the facility. Once it is operational in the fourth quarter of 2010, it will be the first lithium-ion battery manufacturing plant in the country operated by a major auto manufacturer. The opening will coincide with the launch of the Chevrolet Volt, which will begin production in 2010 as a 2011 model. The plant will be part of a wholly owned subsidiary of GM known as GM Subsystem Manufacturing LLC. Equipment installation is currently under way at the new facility.
The Brownstown Battery Assembly Plant will operate closely with GM’s Global Battery Systems Lab in Warren, Mich., which opened in June. The Battery Lab is situated within GM’s Technical Center campus and is dedicated to research and development for the company’s advanced battery system and electric vehicles.
Dan Labes and Jim McClowry of the Southfield, Mich., office of Grubb & Ellis represented the landlord, Ashley Capital, in lease negotiations. The lease has a 7-year term with a 5-year extension option. Representatives from Grubb & Ellis as well as GM did not respond to a request for comment as of press time.
— Coleman Wood