GM Investing $2 Billion to Transition Spring Hill, Tennessee Plant

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Thread: GM Investing $2 Billion to Transition Spring Hill, Tennessee Plant

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    GM Investing $2 Billion to Transition Spring Hill, Tennessee Plant

    GM Investing $2 Billion to Transition Spring Hill, Tennessee Plant to Build Electric Vehicles, including Cadillac LYRIQ
    General Motors

    WARREN, Mich. — General Motors Co. (NYSE: GM) announced today that its Spring Hill, Tennessee assembly plant will begin the transition to become the company’s third vehicle manufacturing site to produce electric vehicles, joining Factory ZERO in Detroit and Hamtramck, Michigan, and Orion Assembly in Orion Township, Michigan. In addition, the company is confirming investments in five Michigan plants, including the Lansing Delta Township Assembly and Flint Assembly for future crossover and full-size pickup production.

    The all-new Cadillac LYRIQ will be the first EV produced at Spring Hill. Production of the Cadillac XT6 and XT5 will continue at Spring Hill. The facility will build both traditionally powered Cadillac products and EVs.

    The six U.S. facility investments total more than $2 billion, bringing the total amount GM has invested or committed to invest in its U.S. manufacturing sites to more than $29 billion since 2009. Today’s planned investments include:

    • $2 billion will be invested in Spring Hill Manufacturing to build fully electric vehicles including the luxury Cadillac LYRIQ. Through this investment, Spring Hill’s paint and body shops will undergo major expansions and the general assembly will receive comprehensive upgrades, including new machines, conveyors, controls and tooling. The renovation work in Spring Hill will begin immediately.
    • Production of the next-generation GMC Acadia will move to Lansing Delta Township Assembly, representing an investment of more than $100 million.
    • $32 million will be invested at Flint Assembly for future production of heavy-duty Chevrolet Silverado and GMC Sierra pickups, which have gained significant market share in the United States and Canada.
    • $17 million will be invested in the Romulus, Michigan propulsion plant to enhance automation and increase capacity of GM’s 10-speed truck transmission, which is used in full-size pickups and other key products, including the all-new Chevrolet Tahoe and Suburban, GMC Yukon and Yukon XL, and the Cadillac Escalade.
    • $3.5 million will be invested at Orion Assembly. In addition, $750,000 will be invested at GM’s site in Brownstown Charter Township, Michigan. Both investments are related to additional production of the Cruise AV test vehicle at Orion Assembly.
    *Full Press Release at Link

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    Re: GM Investing $2 Billion to Transition Spring Hill, Tennessee Plant

    IMO the best part is the plant will continue to make ICE vehicles so they’ll be able to dial in EV vs ICE depending on demand.

    “The facility will build both traditionally powered Cadillac products and EVs.”
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    Re: GM Investing $2 Billion to Transition Spring Hill, Tennessee Plant

    Quote Originally Posted by dannyg View Post
    IMO the best part is the plant will continue to make ICE vehicles so they’ll be able to dial in EV vs ICE depending on demand.

    “The facility will build both traditionally powered Cadillac products and EVs.”
    Hopefully we see more investments like this. Do you think the components will be coming in from Chainah?

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    Re: GM Investing $2 Billion to Transition Spring Hill, Tennessee Plant

    This sounds somewhat similar to what's happening to Ford's Oakville plant, transiting from ICE Crossovers to BEV Crossovers. My guess is that XT5/XT6 will be replaced by BEVs just like Edge/Nautilus.

    It's amazing how similarly these companies tend to mirror each other. Not to copy each other, but they are responding to the same market trends independently while reaching similar conclusions.
    Last edited by BORG; 10-20-2020 at 12:35 PM.

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    Re: GM Investing $2 Billion to Transition Spring Hill, Tennessee Plant

    It's a great deal. Spring Hill put a lot of faith into GM with Saturn so it's amazing that GM is finally making it right again.
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    Re: GM Investing $2 Billion to Transition Spring Hill, Tennessee Plant

    I'm still wondering if GM will do anything with the Baltimore plant that is still sitting empty, but being maintained.

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    Re: GM Investing $2 Billion to Transition Spring Hill, Tennessee Plant

    Can't wait to see these electrics hit the market.

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    Re: GM Investing $2 Billion to Transition Spring Hill, Tennessee Plant

    Quote Originally Posted by BORG View Post
    This sounds somewhat similar to what's happening to Ford's Oakville plant, transiting from ICE Crossovers to BEV Crossovers. My guess is that XT5/XT6 will be replaced by BEVs just like Edge/Nautilus.

    It's amazing how similarly these companies tend to mirror each other. Not to copy each other, but they are responding to the same market trends independently while reaching similar conclusions.
    Which platforms are Ford BEV's going on? The Mach E? Is that a dedicated BEV platform or is it an adaptation of an existing platform like the Bolt.

    I am looking forward to checking out the Mach E, based on range, it might make sense for me financially to switch to one. I cannot bring myself to drive a Tesla. I am not that cool.

    The other really tempting vehicle for me is the Lyric based on price indication. When I price out a BEV, I think of the price of gasoline as going towards the car payment

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    Re: GM Investing $2 Billion to Transition Spring Hill, Tennessee Plant

    Quote Originally Posted by mbukukanyau View Post
    Hopefully we see more investments like this. Do you think the components will be coming in from Chainah?
    I'm thinking Lansing Grand River might be next, since Caddy is leading the EV transformation for GM. I'm really glad Spring Hill is also making ICE, my guess is they'll do the same thing with Lansing Grand River and convert it to a flexible ICE/EV factory. That way, the ICE Camaro/CT4/CT5 can continue on while the EV products are developed etc. At least a few years, maybe one more gen? This my 100% speculation.
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    Re: GM Investing $2 Billion to Transition Spring Hill, Tennessee Plant

    Quote Originally Posted by dannyg View Post
    IMO the best part is the plant will continue to make ICE vehicles so they’ll be able to dial in EV vs ICE depending on demand.

    “The facility will build both traditionally powered Cadillac products and EVs.”
    I heard on the radio yesturday, they were talking about Hamtramck, "Now called Factory ZERO, that currently makes ZERO vehicles".
    - He wasn't trying to be funny, but the way it came out, hilarious.

    ------------------------

    Press Release (Summarized)

    - $2 billion will be invested in Spring Hill Manufacturing.

    - Production of the next-generation GMC Acadia will move to Lansing Delta Township Assembly, representing an investment of more than $100 million.

    - $32 million will be invested at Flint Assembly for future production of heavy-duty Chevrolet Silverado and GMC Sierra pickups.

    - $17 million will be invested in the Romulus, Michigan propulsion plant to enhance automation and increase capacity of GM’s 10-speed truck transmission.

    - $3.5 million will be invested at Orion Assembly.


    My thoughts:

    1) Interesting that they are adding (MORE) EV capacity, in Spring Hill, not compatible with Hamtramck facilities product?
    2) Maybe they are going to "fix" the Acadia?
    3) HD Truck don't fit the ZERO-ZERO-ZERO, but hey, that's what sells.
    4) More big trucks, mean you need more big truck transmissions.
    5) Bad news for Orion, $3.5 million, is chump-change in the big scheme of things, what are they doing fixing leaks in the roof and pot-hole in the parking lot?
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    Re: GM Investing $2 Billion to Transition Spring Hill, Tennessee Plant

    Quote Originally Posted by mbukukanyau View Post
    Which platforms are Ford BEV's going on? The Mach E? Is that a dedicated BEV platform or is it an adaptation of an existing platform like the Bolt.

    I am looking forward to checking out the Mach E, based on range, it might make sense for me financially to switch to one. I cannot bring myself to drive a Tesla. I am not that cool.

    The other really tempting vehicle for me is the Lyric based on price indication. When I price out a BEV, I think of the price of gasoline as going towards the car payment
    I'm not crystal clear on what the Oakville EVs are at this point, I just know that it constitutes 5 vehicles that includes crossover and performance beginning in 2025. Nautilus goes out of production in 2023 and the AWD Edge remains in product through 2024 before they gut the factory for BEVs in 2025. That means the 2023/24 EV replacements for Nautilus and Edge are likely coming from the Ohio Assembly plant, which I still can't wrap my head around since it produces commercial vehicles today. Originally those EVs were slated for Flatrock. Those two Crossovers are based on a 2nd gen EV architecture, although I'm not sure how it relates to Mach E at this time. They will be using Ford's new in-house motors, the Mach-E currently uses Bosch and GKN motors. The F-150 BEV will be the first Ford EV to debut their new motors. Mach E largely uses a custom platform, there is some debate on if it's related to C2, but it's a stretch to link them IMO. Either way there is almost no parts commonality so it doesn't matter.

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    Re: GM Investing $2 Billion to Transition Spring Hill, Tennessee Plant

    Quote Originally Posted by Ed753 View Post
    I heard on the radio yesturday, they were talking about Hamtramck, "Now called Factory ZERO, that currently makes ZERO vehicles".
    - He wasn't trying to be funny, but the way it came out, hilarious.

    ------------------------

    Press Release (Summarized)

    - $2 billion will be invested in Spring Hill Manufacturing.

    - Production of the next-generation GMC Acadia will move to Lansing Delta Township Assembly, representing an investment of more than $100 million.

    - $32 million will be invested at Flint Assembly for future production of heavy-duty Chevrolet Silverado and GMC Sierra pickups.

    - $17 million will be invested in the Romulus, Michigan propulsion plant to enhance automation and increase capacity of GM’s 10-speed truck transmission.

    - $3.5 million will be invested at Orion Assembly.


    My thoughts:

    1) Interesting that they are adding (MORE) EV capacity, in Spring Hill, not compatible with Hamtramck facilities product?
    2) Maybe they are going to "fix" the Acadia?
    3) HD Truck fit the ZERO-ZERO-ZERO, but hey, that's what sells.
    4) More big trucks, mean you need more big truck transmissions.
    5) Bad news for Orion, $3.5 million, is chump-change in the big scheme of things, what are they doing fixing leaks in the roof and pot-hole in the parking lot?
    Those Gasoline trucks pay for EV's

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    Re: GM Investing $2 Billion to Transition Spring Hill, Tennessee Plant

    Quote Originally Posted by BORG View Post
    I'm not crystal clear on what the Oakville EVs are at this point, I just know that it constitutes 5 vehicles that includes crossover and performance beginning in 2025. Nautilus goes out of production in 2023 and the AWD Edge remains in product through 2024 before they gut the factory for BEVs in 2025. That means the 2023/24 EV replacements for Nautilus and Edge are likely coming from the Ohio Assembly plant, which I still can't wrap my head around since it produces commercial vehicles today. Originally those EVs were slated for Flatrock. Those two Crossovers are based on a 2nd gen EV architecture, although I'm not sure how it relates to Mach E at this time. They will be using Ford's new in-house motors, the Mach-E currently uses Bosch and GKN motors. The F-150 BEV will be the first Ford EV to debut their new motors. Mach E largely uses a custom platform, there is some debate on if it's related to C2, but it's a stretch to link them IMO. Either way there is almost no parts commonality so it doesn't matter.
    Where does Rivian fit into all this?

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    Re: GM Investing $2 Billion to Transition Spring Hill, Tennessee Plant

    Quote Originally Posted by mbukukanyau View Post
    Where does Rivian fit into all this?
    It doesn't at all. That relationship was originally to develop a Lincoln flagship EV Crossover to be named Continental which would have been going into production next year...had it continued. But at this point there is no product partnership and Ford is developing its own EVs. I assume Ford just threw away $500 Million to prevent GM from buying Rivian at this point (Heinrich even gloated about that achievement on his way out the door after being fired). Lincoln was suppose to have the Rivian flagship EV and their new Ford designed Crossover by 2023, but now it's just down to the single midsize BEV Crossover. It was going to feature a ton of new Lincoln exclusive tech. Tech is where Lincoln is especially deficient right now with several new Ford vehicles getting amenities like hands-free adaptive cruise as part of Sync 4 (Mach E and F-150). That electronics architecture is also in Bronco, not in Bronco Sport or other C2 products like Corsair. It requires a major investment to rewire a platform for Sync 4 so it'll have to wait for all-new vehicles or major MCAs.

    Anyway, Ford's EV priority is Ford First, you won't see Lincoln spearheading anything like Caddy, but Ford may do a better job making good EVs appealing and affordable sooner than GM (Bolt EUV vs Mach E), while GM will do a better job selling flagship and luxury EVs up front (Hummer EV vs F-150 BEV). Ultimately they'll probably end up in the same spot by the end of the decade.
    Last edited by BORG; 10-20-2020 at 11:17 PM.

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    Re: GM Investing $2 Billion to Transition Spring Hill, Tennessee Plant

    Quote Originally Posted by mbukukanyau View Post
    Hopefully we see more investments like this. Do you think the components will be coming in from Chainah?
    Yes the Woohan Provence. We’re getting more than car components....
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