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Cadillac CT6 production ceases January 2020 as part of D-Ham layoffs

General Motors filed paperwork under the Worker Adjustment and Retraining Notification Act with Michigan's Department of Labor and Economic Opportunity this week, detailing events to come at the automaker's Detroit-Hamtramck Assembly Plant. Starting February 28, 814 salaried and hourly workers at D-Ham, as its called, will be laid off. The 753 workers represented by the UAW will begin receiving offers in January to relocate to facilities in Michigan and Ohio, or buyout offers. As the 4-million-square-foot plant winds down through April 3 to a skeleton crew, the Cadillac CT6 ceases production in January 2020, and the last Chevrolet Impala comes off the line on February 28. The loss of the CT6 represents the end of Cadillac's latest brief, and highly regarded, adventure into flagship sedans. It might also mean the end of the 4.2-liter Blackwing twin-turbo V8 engine, at least for the moment. Both casualties are calamities. The death of the Impala closes the door on a nameplate in production for 52 years since 1957, having started off as a top-tier trim for the 1958 Bel Air known as the Bel Air Impala, once advertised with the line, "Lets you know you're the boss." As part of the new four-year labor agreement with the UAW, GM is keeping D-Ham open to build a new line of battery-electric vehicles, ultimately investing $3 billion and tripling employment to 2,225 workers when fully operational. The agreement described the coming EV as a "van" that would commence production in late 2021, but various reports say what's actually coming is a range of premium EVs in pickup and SUV bodystyles under the program codename BT1. The easy predictions put an electric GMC Sierra and Cadillac Escalade among the EV fold, but not until 2023, according to auto industry forecaster LMC Automotive. Before that, LMC claims an electric van will debut in late 2021, along with a battery-powered rebirth of the Hummer brand in pickup and SUV forms, also in late 2021. 

VW, Rivian, Nissan, BMW, Genesis, Audi and Volvo lose EV tax credits starting tomorrow

The U.S. Treasury said Monday that Volkswagen, BMW, Nissan, Rivian, Hyundai and Volvo electric vehicles will lose access to a $7,500 tax credit under new battery sourcing rules. The Treasury said the new requirements effective Tuesday will also cut by half credits for the Tesla Model 3 Standard Range Rear Wheel Drive to $3,750 but other Tesla models will retain the full $7,500 credit. Vehicles losing credits Tuesday are the BMW 330e, BMW X5 xDrive45e, Genesis Electrified GV70, Nissan Leaf , Rivian R1S and R1T, Volkswagen ID.4 as well as the plug-in hybrid electric Audi Q5 TFSI e Quattro and plug-in hybrid (PHEV) electric Volvo S60. The Swedish carmaker is 82%-owned by China’s Zhejiang Geely Holding Group. The rules are aimed at weaning the United States off dependence on China for EV battery supply chains and are part of President Joe Biden's effort to make 50% of U.S. new vehicle sales by 2030 EVs or PHEVs. Hyundai said in a statement it was committed to its long-range EV plans and that it "will utilize key provisions in the Inflation Reduction Act to accelerate the transition to electrification." Rivian declined to comment and the other automakers could not immediately be reached for comment. Treasury also disclosed General Motors electric Chevrolet Bolt and Bolt EUV will qualify for the full $7,500 tax credit. GM said earlier it expected at least some of its EVS would qualify for the $7,500 tax credit under the new rules, including the 2023 Cadillac Lyriq and forthcoming Chevrolet Equinox EV SUV and Blazer EV SUV. Treasury said all GM EVs will qualify. Earlier, Ford Motor and Chrysler-parent Stellantis said most of their electric and PHEV models would see tax credits halved to $3,750 on April 18. Treasury confirmed the automakers' calculations. The rules were announced last month and mandated by Congress in August as part of the $430 billion Inflation Reduction Act (IRA). The IRA requires 50% of the value of battery components be produced or assembled in North America to qualify for $3,750, and 40% of the value of critical minerals sourced from the United States or a free trade partner for a $3,750 credit. The law required vehicles to be assembled in North America to qualify for any tax credits, which in August eliminated nearly 70% of eligible models and on Jan. 1 new price caps and limits on buyers income took effect.

GM drops diesel engines for 2020 Chevy Equinox and GMC Terrain crossovers

GM is officially discontinuing the diesel engine in the Chevy Equinox and GMC Terrain for the 2020 model year. The 1.6-liter turbodiesel was always an oddball of an engine in the compact crossover segment, and now the experiment has come to an end. The Car Connection initially reported the news, and a GMC spokesperson, Stuart Fowle, confirmed it to us this morning.  “A huge majority of our Terrain customers have opted for one of our two gas engines," says Fowle. We canÂ’t say this eventuality comes as a massive surprise, as we saw news from couple of months ago that GM was dropping all-wheel drive from the diesel-powered cars for 2020. Low demand was cited as the reason for that cull, and itÂ’s the same for the little GM crossovers this time around, too. These vehicles were the only ones powered with a diesel engine in their class, but thatÂ’s going to be changing. Just as GM is going away from the diesel, Mazda is finally bringing its diesel to market in the CX-5. YouÂ’ll only be able to get that engine in the most expensive ($42,045) trim level, combined with all-wheel drive, though. The cheapest Equinox diesel starts at a comparably low $30,795. ThatÂ’s a $2,400 upcharge over the base 1.5-liter turbo four-cylinder, and the value is questionable. Mileage is better, but diesel fuel is more expensive. Towing capability didnÂ’t increase over the base engineÂ’s 1,500-pound capacity, but the extra torque around town was nice. As diesels go in the U.S., this one was rather rough and noisy, possibly contributing to some turning their noses up after a test drive. Perhaps another reason for its demise was that the much quicker 2.0-liter turbo Equinox was only $100 more than the diesel. This engine offered significantly better towing at 3,500 pounds, too. You can read all about what we thought of the diesel in our first drive review here, but the 2019 model year is the last one if you had it on your shortlist. This article has been updated to indicate the source.