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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.

GM won't really kill off the Chevy Volt and Cadillac CT6, will it?

General Motors is apparently considering killing off six slow-selling models by 2020, according to Reuters. But is that really likely? The news is mentioned in a story where UAW president Dennis Williams notes that slumping US car sales could threaten jobs at low-volume factories. Still, we're skeptical that GM is really serious about killing those cars. Reuters specifically calls out the Buick LaCrosse, Cadillac CT6, Cadillac XTS, Chevrolet Impala, Chevrolet Sonic, and the Chevrolet Volt. Most of these have been redesigned or refreshed within the past few model years. Four - the LaCrosse, Impala, CT6, and Volt - are built in the Hamtramck factory in Detroit. That plant has made only 35,000 cars this year - down 32 percent from 2016. A typical GM plant builds 200,000-300,000 vehicles a year. Of all the cars Williams listed, killing the XTS, Impala, and Sonic make the most sense. They're older and don't sell particularly well. On the other hand, axing the other three seems like an odd move. It would leave Buick and Cadillac without flagship sedans, at least until the rumored Cadillac CT8 arrives. The CT6 was a big investment for GM and backing out after just a few years would be a huge loss. It also uses GM's latest and best materials and technology, making us even more skeptical. The Volt is a hugely important car for Chevrolet, and supplementing it with a crossover makes more sense than replacing it with one. Offering one model with a range of powertrain variants like the Hyundai Ioniq and Toyota Prius might be another route GM could take. All six of these vehicles are sedans, Yes, crossover sales are booming, but there's still a huge market for cars. Backing away from these would be essentially giving up sales to competitors from around the globe. The UAW might simply be publicly pushing GM to move crossover production to Hamtramck to avoid closing the plant and laying off workers. Sales of passenger cars are down across both GM and the industry. Consolidating production in other plants and closing Hamtramck rather than having a single facility focus on sedans might make more sense from a business perspective. GM is also trying to reduce its unsold inventory, meaning current production may be slowed or halted while current cars move into customer hands. There's a lot of politics that goes into building a car. GM wants to do what makes the most sense from a business perspective, while the UAW doesn't workers to lose their jobs when a factory closes.

GM, Pilot will build EVgo fast chargers at 500 truck stops across U.S.

All of our maps showing electric vehicle charging stations across the U.S. are going to need an update. Today, General Motors, Pilot and EVgo announced plans to work together on a nationwide DC fast charging network. The plan calls for 2,000 charging stalls that can deliver up to 350 kW to be installed at up to 500 Pilot and Flying J travel centers in the U.S. The goal is to have DC fast chargers available in 50-mile intervals across the country. The new charging stations will feature GM's "Ultium Charge 360" branding and "Pilot Flying J" logos but will not be limited to drivers of GM EVs. The plugs will use CCS connectors and be available to anyone. GM EV owners can take advantage of benefits, including the ability to make exclusive reservations, get discounts on charging costs and streamline the charging process with Plug and Charge and in-vehicle apps that can provide real-time charger availability. The first installation phase will take place in 2023, and "the bulk of the installations" should be completed by 2025, EVgo CEO Kathy Zoi said during a conference call with reporters announcing the plan. "We're gonna get going immediately and commence all of that engineering and planning stuff," she said. "We've got a pretty orderly plan." Pilot CEO Shameek Konar said the company expects the new EV charging stations to coexist with the current fuel infrastructure. "An average Pilot Flying J location is about 10 acres," Konar said. "This will be in addition to all of our gas pumps. The way I think about it is, this is a new source of energy that is going to coexist with gas for quite some time. We can debate how long, but we need to serve both groups of customers." Installing DC fast chargers at hundreds of Pilot's travel centers — aka truck stops — means there should be food, drinks, restrooms, WiFi and even showers available while you wait for an EV to charge. Pilot recently announced its “New Horizons” plan that will invest $1 billion in upgrading Pilot travel centers with more premium amenities, including expanded seating and lounge areas. While the exact amount of time it will take to charge an EV using these new stations will vary on the EV and its current state of charge, most EVs can refill from a low state of charge to around 80 percent in 20-30 minutes on a fast charger. The new stations are future-proofed to deliver up to 350 kW, a charge rate that few EVs today can handle.