$120 million from GM sparks hope in Detroit (Chevy Malibu / Volt will be built there)

[Amerigo Vespucci]

With GM's $120 million investment, the plant that straddles the Detroit-Hamtramck border will build the Malibu and the Volt and reassure workers in this community.

By Steve Hargreaves, Senior writerApril 21, 2010: 3:36 PM ET

http://money.cnn.com/2010/04/21/news/economy/gm_detroit/index.htm?source=cnn_bin

NEW YORK (CNNMoney.com) -- General Motors' announcement Wednesday that it's investing $120 million in a Detroit auto plant is an encouraging sign for many in this hard hit city.

"Investment of that amount means long-term job security," said Tom Summers, vice president at union Local 22, which represents workers at the plant that straddles the Detroit-Hamtramck border. "And it shows that Michigan is still a centerpiece of manufacturing."

The investments are designed to produce the next generation of the Chevy Malibu, GM's best selling car, in the facility located just 5 miles northeast of downtown Detroit.

The Malibu is currently made at a Kansas City plant. It was also made at a factory about a half hour drive northeast of Detroit, but that plant is being retooled to make a smaller car.

Summers said 100 or so furloughed workers at the Hamtramck plant should be brought back, and maybe even new ones hired, over the next couple of years.

Ultimately, he said GM plans on running the factory three shifts a day, which could entail at least doubling the workforce. The plant currently employs just over 1,000 people and runs one shift a day.

[dmallind]

1. ...and once again good news is never ever responded to

...unless of course some ridiculous hook can be found to make it into (fake) bad news. Looks like they are having a hard time spinning this as bad news....

[Amerigo Vespucci]

2. Yep. "EVIL General Motors EXPLOITS Repressed Workers by CREATING JOBS."

:rofl:

:toast:

[DainBramaged]

17. yup yup uh huh yup yup

:fistbump:

[graywarrior]

3. I just hope they make energy efficient and AFFORDABLE cars

[dmallind]

4. ...and be profitable? And pay top union scale?

Affordable is in the eye of the payer, but based on everything I read here about companies exploiting workers if they do not get $30/hr+ and full cradle to grave benefits and pensions, plus what I already know about the cost of battery technology, making the Volt cost peanuts is going to be pretty tricky.

[Moosepoop]

5. I don't know what they anticipate for worker wages/benefits

but as of four months ago GM anticipated the price of the Volt could be around $40,000 before rebate.

http://money.cnn.com/2009/12/07/autos/GM_volt.reut/index.htm?postversion=2009120711

GM's new CEO Ed Whitacre gets cracking

But GM officials have also downplayed expectations for the Volt's commercial success because of the vehicle's steep development costs, high sticker price and limited production.

GM Vice Chairman Bob Lutz said last week at the Los Angeles auto show that he sees limited sales of electric cars over the next five years and that GM will ramp up output of the Volt plug-in cautiously.

GM would build 8,000 to 10,000 Volt models during the first full year of production, with an eventual ramp-up to 50,000 to 60,000 units annually, Lutz said.

GM executives have said the Volt could cost about $40,000 before a consumer tax rebate of $7,500.

[graywarrior]

9. Looks like I'll have to keep driving my 95 Camry

[Moosepoop]

11. Same here, I'll be keeping my Chevy Impala.

But that's because I won't be in the market for any new car, probably ever. I've always purchased good, used cars rather than buying new.

For new car buyers, the projected initial price of the Volt is substantially higher than that of other cars in its size range. But it's also lower than the average price of a new Suburban and some other SUVs were not that long ago.

There are (or were) many people willing to pay that amount for a vehicle. The question is whether the people willing and still able to spend that much will want to do so for this car, since it doesn't have the same features (size & room) that they were paying for before. Reduced fuel cost is a major feature, but still, I don't know if that will be enough to cause those who can buy them to do so.

[graywarrior]

13. The Ford hybrids are more affordable

[Moosepoop]

14. Yes, but they are a different type of hybrid.

http://usnews.rankingsandreviews.com/cars-trucks/Chevrolet_Volt/

The Chevy Volt is midsize, series-hybrid car. GM prefers to refer to it as "an Extended-Range Electric Vehicle," or E-REV. The distinction from traditional hybrids is important. All of the hybrids you can buy today -- like the Toyota Prius -- are parallel hybrids. They are essentially gasoline-powered cars with an electric motor to boost their gas mileage. The Volt is the opposite. It is a series hybrid -- an electric car with a small gasoline engine to boost its range.

GM says the gasoline engine will do less work in the Volt than in any previous hybrid. The electric motor, engineers claim, will be able to power the car all the way to 100 miles per hour, for up to 40 miles. The gasoline engine is just a generator that kicks in to recharge the batteries when they are near empty. In fact, some analysts believe the Volt may be capable of even longer battery-only cruises. Motor Trend reports, "engineers point out that the 40-mile range statistic bandied about is a conservative one that applies at the end of 10 years and 150,000 miles."

GM engineers estimate that the average driver will be able to travel 40 miles before the gasoline engine even ignites. But the range of the Volt under battery power alone will change based on how much weight it is carrying, how fast it is traveling, and other factors. The 40-mile figure is significant, however, because most Americans drive less than 40 miles per day. For many owners, the Volt would function as an electric car virtually all the time, using gasoline only when they took longer trips than they take on a typical day.

\

On those occasions when the Volt does need to run on the gas-powered engine, GM anticipates that it will get around 230 mpg for city driving, and over 100 mpg for highway/city combined.

So, yes -- Ford's hybrids are currently more affordable. They're also considerably different. I'm hoping that enough of those who can afford to purchase the Volt do so. Someday when they're on the used car market, I hope to get one myself.

[graywarrior]

15. See that's where I get all confused

[dmallind]

12. Seems about right. Affordable? To many, sure, to all, no.

Which is of course fine. New technology is rarely cheap to begin with, and some people are more willing and able to pay for early adoption.

[DevonRex]

6. We have a Malibu Hybrid and it's fantastic. It was affordable and gets

better than advertised gas mileage. We absolutely LOVE it. Not only that, but since we did the Cash for Clunkers thing and the clunker was destroyed, we got a fantastic tax break on our state taxes. It's the first time we have gotten a refund in over a decade.

[DainBramaged]

18. We do

We have a higher fleet average MPG than Toyota, and that includes our work trucks. The new Cruize will give you 40 MPG highway without being a hybrid. The Volt will be THE FIRST of a new generation of electric vehicles. And when the Hybrid version of the award winning 32 MPG Equinox comes out, then toYOYOta will have serious issues keeping up.

[fishwax]

7. god knows detroit can use the good news about now

:kick:

[eShirl]

8. good!

[JNelson6563]

10. Awesome!

Best news I've heard in a while. :toast:

[Statistical]

16. Come on VOLT!

Can't wait to see the volt on the road (retail version not prototypes).

Good news for Chevy. I hope they have initial success with this vehicle. It is a step in the right direction.