GM invests 2.2 billion dollars in the construction of autonomous electric vehicles/ Cadillac to become the leading EV brand

GM invests 2.2 billion dollars in the construction of autonomous electric vehicles/ Cadillac to become the leading EV brand

30. January 2020 0 By Horst Buchwald

GM invests 2.2 billion dollars in the construction of autonomous electric vehicles/ Cadillac to become the leading EV brand

New York, 30.1.2020

Last week GM subsidiary Cruise unveiled the Origin, its first self-propelled car without a steering wheel and pedals. At that time, CEO Dan Ammann promised to reveal details of the production in the coming days. Well, today is the day: GM announced to spend 2.2 billion dollars to retrofit its Detroit-Hamtramck plant for the production of autonomous and electric vehicles.

In addition to the Origin plant, the plant will also produce fully electric SUVs and pickups. The automaker plans to launch 20 electric types by 2023, the first of which will be an electric truck, which is scheduled to go into production in 2021. Soon after” will follow the Cruise Origin, a shared electric self-propelled vehicle that was unveiled last week in San Francisco. Detroit-Hamtramck will be the first “fully equipped” GM assembly plant for electric vehicles, the company said.

GM says its electric truck is scheduled to go into production in 2021.

This represents an about-face for GM, which had planned to close its Detroit-Hamtramck plant in June 2019, but changed course after talks with the United Auto Workers union last fall. Detroit-Hamtramck employs around 900 people and produces four vehicles, including the Chevrolet Impala and Cadillac CT6. The plant was one of five North American plants whose closure GM has announced. GM said that it would be “shut down” for several months starting at the end of February, when renovation work will begin.

It is also the second major production announcement by GM in recent months. Last December, the automaker said it was setting up a joint venture with South Korean LG Chem to mass produce batteries for electric cars, with the two companies planning to invest a total of $2.3 billion in the construction of a new plant in Lordstown, Ohio. This plant will supply battery cells for the electric vehicles manufactured in Detroit-Hamtramck.

GM said Michigan state tax incentives made the decision possible – although the automaker had not disclosed the amount. “This investment helps keep Michigan at the epicenter of the global automotive industry as we move toward an electrified future,” GM President Mark Reuss said in a statement.

GM has not launched a new electric vehicle since the Chevy Bolt in 2016. The company plans to make Cadillac its leading EV brand, which it hopes will help it catch up with other automakers in the luxury market.

Last year, Audi, Mercedes-Benz, Jaguar and BMW introduced high-end electric vehicles that are expected to compete with Tesla’s S and X models. The announcement of the Origin was a significant milestone, as it was the first purpose-built autonomous vehicle without traditional controls that eventually went into mass production. The vehicle was developed with the help of Honda, which is a major investor in GM’s Cruise subsidiary. The driverless electric shuttle has the same dimensions as a small crossover and is designed to be used as part of a ride hailing service.

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