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GM announces $7 billion Michigan factory investment, most going to EVs

GM announced a $7 billion investment in Michigan manufacturing, much of which is earmarked for EV production. Four sites are included, but the key elements are a new battery cell plant in Lansing and the conversion of GM's existing Orion Township facility to expand production of the forthcoming Chevrolet Silverado EV and its GMC Sierra sibling.  GM says it is the largest investment announcement in company history and that it will create 4,000 new jobs. It also says 1,000 jobs will be retained. "We are building on the positive consumer response and reservations for our recent EV launches and debuts, including the GMC Hummer EV, Cadillac Lyriq, Chevrolet Equinox EV and Chevrolet Silverado EV," said GM CEO Mary Barra.  GM says the Orion expansion and new battery plant will support an increase in full-size electric truck production capacity to 600,000 units. This is in addition to the Factory ZERO facility in Detroit that will also be constructing the electric Silverado and Sierra.  The Orion Township factory current builds the Chevrolet Bolt EV and EUV, and will continue to do so during the plant's conversion. GM did not indicate what will happen with the Bolts once that conversion is complete or whether all will continue to be built at Orion. They do not use the Ultium vehicle architecture. GM will build other EV models at three other factories that are under construction or being converted. They are located in Spring Hill, Tennessee, Ingersoll, Ontario, and Ramos Arizpe, Mexico. GM says that it will have the ability to produce 1 million electric vehicles by 2025. The Ultium Cells Lansing facility is a $2.6 billion joint investment by GM and LG Energy Solution. GM says it alone will create 1,700 jobs once fully operational by late 2024. It will join two other GM Ultium Cells battery factories currently under construction in the United States, one in Ohio and the other in Tennessee.  Not all of the $7 billion investment will be for EVs. It also announced $510 million of the total will go toward upgrading the Lansing Delta Township Assembly to produce the next-generation Chevrolet Traverse and Buick Enclave. Money will also go to upgrading Lansing Grand River Assembly.

Even if GM does close all 5 of those plants, it'll still have too many

DETROIT — General Motors' monumental announcement on Monday that it will close three car assembly plants and two powertrain plants in North America and slash its workforce will only partially close the gap between capacity and demand for the automaker's sedans, according to a Reuters analysis of industry production and capacity data. Sales of traditional passenger cars in North America have been declining for the past six years and are still withering. After GM ends production next year at factories in Michigan, Ohio and Ontario, it will still have four U.S. passenger-car plants — all operating at less than 50 percent of rated capacity, according to figures supplied by LMC Automotive. In comparison, Detroit-based rivals Ford and Fiat Chrysler Automobiles will have one car plant each in North America after 2019. The Detroit Three are facing rapidly dwindling demand for traditional passenger cars from U.S. consumers, many of whom have shifted to crossovers and trucks. Passenger cars accounted for 48 percent of retail light-vehicle sales in the United States in 2014, according to market researchers at J.D. Power and Associates. This year, sedans will account for less than a third of light vehicle sales. That shift in turn has left most North American car plants operating far below their rated capacities, while many SUV and truck plants are running on overtime. The collapse in passenger-car demand is a challenge for nearly all automakers in the United States, including Japan's Toyota and Honda, which have the top-selling models in the compact and midsize car segments. Toyota executives said last month they are evaluating the company's U.S. model lineup. But Toyota also plans to build compact Corolla sedans at a new $1.6 billion factory it is building in Alabama with partner Mazda. The obstacles facing GM in its plans to close more auto factories became apparent on Tuesday as U.S. President Donald Trump threatened to block payment of government electric vehicle subsidies to GM. While it is not certain that Trump unilaterally has the power to do that, he made it clear he intends to use his office to pressure the company to keep open a small car plant in Ohio that GM says will stop building vehicles in March.

Chevy Silverado WT gets its own murdered-out trim pack

Media days for the 2015 Chicago Auto Show ended last week, but that hasn't stopped Chevrolet from adding just one more thing. The Bowtie brand showed off three new trim packages for its trucks in the Windy City – the Colorado GearOn and the Silverado Midnight and Custom – but protests from consumers over the price of these equipment packs has led the company to release a new trim group for its most affordable fullsizer, the Silverado WT. The $1,595 Black Out pack will be available on both the regular- and double-cab Silverado WT and offers a few simple, stylistic upgrades. Five-spoke, 20-inch black wheels are the headlining item, although Chevy will also include "deep tinted glass" and black bowtie badges both fore and aft. Available only in black (the company even paraphrases old Mr. Ford in its press release), the new package adds just enough to class up the otherwise dreary looking Work Truck. Chevy has only released one image for the time being, available up top. Dealers, meanwhile, are currently taking orders. Check below for the brief press release. Chevrolet Silverado Work Trucks Get Blacked Out DETROIT – Chevrolet is adding a $1,595 Black Out package for regular- and double-cab 2015 Silverado 1500 WT models. It includes 20" black painted aluminum wheels, P275/55R20 all-season blackwall tires, deep tinted glass and black bowties. Prices start at $28,895. The package is available for order now, and customers can have any color they want, as long as it is black. Editors' Note: Manufacturer's Suggested Retail Price excludes tax, title, license, dealer fees and optional equipment. Includes dealer freight charges and option package discounts. Founded in 1911 in Detroit, Chevrolet is now one of the world's largest car brands, doing business in more than 140 countries and selling more than 4.8 million cars and trucks a year. Chevrolet provides customers with fuel-efficient vehicles that feature engaging performance, design that makes the heart beat, passive & active safety features and easy-to-use technology, all at a value. More information on Chevrolet models can be found at www.chevrolet.com.