General Motors is making the largest investment in company history in its home state of Michigan, announcing plans to spend nearly $7 billion to convert a factory to make electric pickup trucks and to build a new battery cell plant.
The moves, announced Tuesday in the state capital of Lansing, will create up to 4,000 jobs and keep another 1,000 already employed at an underutilized assembly plant north of Detroit.
The automaker plans to spend up to $4 billion converting and expanding its Orion Township assembly factory to make electric pickups and $1.5 billion to $2.5 billion building a third U.S. battery cell plant with a joint-venture partner in Lansing.
GM CEO Mary Barra said the investment would make Michigan “the epicenter of the electric vehicle industry.”
The state’s economic development board on Tuesday approved $824 million in incentives and assistance for Detroit-based GM. The package was unveiled and authorized by the Michigan Strategic Fund Board. It includes a $600 million grant to GM and Ultium Cells, the venture between the carmaker and LG Energy Solution, and a $158 million tax break for Ultium. The board also approved $66.1 million to help a local electric utility and township upgrade infrastructure at the battery factory site.
Both factories are scheduled to start producing in about two years, as GM rolls the dice on whether Americans will be willing to convert from internal combustion engines to battery power.
The Orion plant will join GM’s “Factory Zero” facility in Detroit in building new electric Chevrolet Silverados and GMC Sierra pickups. When both plants are making trucks on three shifts, GM will have the ability to build 600,000 electric pickup trucks per year, Barra said.
Already the company is getting great interest in the trucks from consumers, she said, without giving any numbers of reservations.
The announcement is a critical win for Michigan, which lost out on Ford Motor Co.’s $11 billion investment in three battery plants and a new vehicle assembly plant that went to Kentucky and Tennessee.
GM President Mark Reuss said it made sense for GM to locate the battery factory near its large manufacturing footprint in Michigan. The company’s ability to quickly convert existing factories such as Orion to build solely electric vehicles is a competitive advantage over companies that need to costly build brand-new plants, he said.
“We’re going to take advantage of that from an assembly plant standpoint, and then we’re going to put the new cell plants in the proximity to supply that footprint,” Reuss said.
GM says it will build four battery cell factories in North America. The Lansing announcement is its third, but Reuss said more may be needed as the transition to electric vehicles continues. The location of the fourth plant has not been announced.
General Motors is investing $154 million to renovate a plant in New York that will create an estimated 230 more jobs in order to produce electric motor parts.
In a statement on Friday, the company said the Western New York Lockport Components plant will begin facility renovations immediately.
The money will go toward renovating the building and providing new equipment needed to make the electric motor stator module, a key component for electric vehicles, per the statement.
The facility currently produces radiators, condensers, heater cores, evaporators, HVAC modules, oil coolers and other components needed for production of the company’s trucks and SUVs.
Approximately 230 jobs will be added between 2023 and 2026 as the facility transitions into producing motor components for electric vehicles, according to the company.
“GM’s investment in Lockport Components reaffirms our commitment to manufacturing in Western New York and our confidence in this team. They will build a crucial module in our electric motor assembly for our future electric trucks and SUVs," Gerald Johnson, GM executive vice president of global manufacturing and sustainability, said in a statement.
"This is an excellent example of how we are bringing our workforce along on the journey to an all-electric future while we scale our EV production capacity and maintain a flow of parts for our current vehicles,” he added.
- Bentley will start output of first full EV in 2025
Bentley starts production of its first full-electric car in 2025 as part of a 2.5 billion pounds ($3.4 billion) investment in sustainability over the next 10 years.
The electric Bentley will be built at the automaker's factory in Crewe, England. It's a critical step in Bentley's plan to switch its entire model range to full-electric vehicles by 2030, the automaker said in a statement on Wednesday.
Bentley did not provide details on the electric vehicle.
The investment will partly pay for a new assembly area called the Bentley Dream Factory at the Crewe plant.
In the statement, Bentley described it as "an industry-leading greenfield facility" with a low environmental impact.
"Securing production of our first BEV in Crewe is a milestone moment for Bentley, and the UK, as we plan for a long-term sustainable future in Crewe," Bentley CEO Adrian Hallmark said in the statement.
The EV is expected to be a version of a luxury EV with advanced self-driving functions being developed by Audi, which has oversight of Bentley within Volkswagen Group. Bodies-in-white would be built alongside the Audi at VW's factory in Hanover, Germany, then shipped to Crewe.
Bentley had a record year in 2021 as its global vehicle sales jumped 31 percent to 14,659, boosted by continuing high demand for the Bentayga SUV.
One fifth of Bentayga sales were plug-in hybrids, giving the brand leadership in electrification ahead of rivals such as Aston Martin and Lamborghini. Bentley said it would sell only plug-in hybrid and pure electric models by 2026.
Bentley will be beaten by UK rival Rolls-Royce, owned by BMW, to be the first ultraluxury brand to offer a pure electric vehicle. Rolls-Royce has said it will launch its first full-electric car, the Spectre coupe, in 2023, two years before Bentley.
Ferrari will launch its first full-electric car in 2025, while Lamborghini has said its first full-EV will appear by 2030. https://www.autonews.com/automakers-...t-full-ev-2025
- President Biden announced during his remarks at the U.S. Conference of Mayors that his Administration is teaming up with states, cities, labor, and industry to launch the Building Performance Standards Coalition, a first-of-its-kind partnership between 33 state and local governments dedicated to delivering cleaner, healthier, and more affordable buildings. With nearly 20% of the nation’s building footprint in their jurisdictions, the partnership facilitates new commitments to design and implement building performance standards at the state and local level, create good-paying, union jobs, lower energy bills for consumers, keep residents and workers safe from harmful pollution, and cut emissions from the building sector. Today’s announcement builds upon the Department of Energy’s efforts to upgrade one million homes, and makes progress toward President Biden’s goal to retrofit four million buildings and two million homes during his first term. https://www.whitehouse.gov/briefing-...nce-standards/
In other news……….
- Thailand rushes to contain oil spill after undersea leak
Thailand's navy and pollution experts battled Thursday to clear up an oil spill close to pristine holiday beaches, after an undersea pipeline leaked up to 50 tonnes of crude. The kingdom's Pollution Control Department has warned that the spill in the Gulf of Thailand, about 20 kilometres (12 miles) off the coast of Rayong province, could threaten a national park in nearby Ko Samet island. https://www.thejakartapost.com/world...sea-leak-.html