There are two key components in an electric vehicle that automakers have to source. The key components are the electric motors and the battery packs. The electric motor is important because it actually moves the vehicle when in electric mode or helps the combustion engine propel the vehicle.
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GM has announced that it will become the first major US automaker to manufacture its own electric motors. The motors will be used in both electric vehicles and hybrids. The electric motors will first be used in rear-wheel-drive two-mode hybrid vehicles and the total investment form GM in the endeavor is $246 million in the US.
By building its own electric motors, GM says that it will lower costs and improve quality, reliability, and manufacturability of electric motors. GM will gain full control over design, materials selection, and the production process.