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GM will make Chevy Volt production announcement tomorrow

Thing are apparently happening to get the next-generation Chevy Volt ready for public consumption. The most obvious proof is in a preview of an announcement (possibly coming tomorrow) that the two main places where General Motors gets the Volt ready -the Detroit-Hamtramck Assembly Plant and the Brownstown Township battery assembly facility - will be getting big money upgrades and lots of new positions. The Hamtramck plant builds the Volt and its fancier cousin, the Cadillac ELR, as well as the global versions of the Volt. The Detroit News reports that GM will add 1,400 jobs and spend roughly $450 million at the two locations in order to build the redesigned Volt. What's less clear is exactly what the updates will bring us. We've heard that the new volt will be a 2016 model and come on a new chassis. Speculation in The Detroit News about tomorrow's announcement runs the gamut from a new compact PHEV with less electric range and a lower price (which makes sense) to an updated Volt with more electric range (heard it before) to a new all-electric vehicle (the moon shot). If there's any hints to be gleaned in the international Volts, there are also reports coming in that the Opel brand will get an all-electric vehicle that is cheaper than the Ampera. Read into that what you will. We pestered GM's Kevin Kelly on the new Volt (again) and he said (again) that he couldn't give out any more detail other than what's been reported. He just told AutoblogGreen that there will be an announcement tomorrow and that it will be about the Hamtramck and Brownstown facilities and involve the Volt. So, stay tuned.

5 reasons why GM is cutting jobs, closing plants in a healthy economy

DETROIT — Even though unemployment is low, the economy is growing and U.S. auto sales are near historic highs, General Motors is cutting thousands of jobs in a major restructuring aimed at generating cash to spend on innovation. It's the new reality for automakers that are faced with the present cost of designing gas-powered cars and trucks that appeal to buyers now while at the same time preparing for a future world of electric and autonomous vehicles. GM announced Monday that it will cut as many as 14,000 workers in North America and put five plants up for possible closure as it abandons many of its car models and restructures to focus more on autonomous and electric vehicles. The reductions could amount to as much as 8 percent of GM's global workforce of 180,000 employees. The cuts mark GM's first major downsizing since shedding thousands of jobs in the Great Recession. The company also said it will stop operating two additional factories outside North America by the end of next year. The move to make GM get leaner before the next downturn likely will be followed by Ford Motor Co., which also has struggled to keep one foot in the present and another in an ambiguous future of new mobility. Ford has been slower to react, but says it will lay off an unspecified number of white-collar workers as it exits much of the car market in favor of trucks and SUVs, some of them powered by batteries. Here's a rundown of the reasons behind the cuts: Coding, not combustion CEO Mary Barra said as cars and trucks become more complex, GM will need more computer coders but fewer engineers who work on internal combustion engines. "The vehicle has become much more software-oriented" with millions of lines of code, she said. "We still need many technical resources in the company." Shedding sedans The restructuring also reflects changing North American auto markets as manufacturers continue to shift away from cars toward SUVs and trucks. In October, almost 65 percent of new vehicles sold in the U.S. were trucks or SUVs. That figure was about 50 percent cars just five years ago. GM is shedding cars largely because it doesn't make money on them, Citi analyst Itay Michaeli wrote in a note to investors. "We estimate sedans operate at a significant loss, hence the need for classic restructuring," he wrote. The reduction includes about 8,000 white-collar employees, or 15 percent of GM's North American white-collar workforce. Some will take buyouts while others will be laid off.

GM throttles back Chevy Malibu, Buick LaCrosse production over swollen inventories

As inventory of the Chevrolet Malibu and Buick LaCrosse continues to pile up, General Motors will be idling its Fairfax Assembly Plant for two weeks, according to Automotive News. This move comes about a month after the plant was shut down for three weeks in late December and early January for the same reason. As of January 31, the GM had a 94-day supply of Malibu stock while the LaCrosse was a little worse with a 117-day supply.
Just last week, GM announced that it would be investing $600 million in upgrading this plant, but it's unclear what future plans the company has in store for Fairfax considering slow sales of both the plant's models. We do expect a refreshed and more luxurious LaCrosse shortly and an early design update for the Malibu to be announced at some point this year, although we have had no official word as to when either will happen.