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Auto Blog
an hour ago
- Auto Blog
GM Announced a Landmark U.S. Manufacturing Investment
GMC Hummer electric vehicles on the production line at General Motors' Factory ZERO all-electric vehicle assembly plant in Detroit, Michigan, U.S., on Wednesday, Nov. 17, 2021. More domestic manufacturing? GM says yes In an announcement late on June 10, one of the most prominent Detroit-based automakers, General Motors, announced its landmark investment plans that would catalyze auto manufacturing in the United States. The automaker announced plans to invest about $4 billion over the next two years to support its U.S. manufacturing plants and their efforts to produce gas and electric vehicles. The automaker did not specify how much money each plant would receive, but it said that the $4 billion in question would help adapt the Orion Assembly in Michigan, Fairfax Assembly in Kansas, and Spring Hill Manufacturing in Tennessee for future vehicles in its pipeline. Previous Pause Next Unmute 0:09 / 0:09 Walmart is selling a 'heavy duty' $89 step ladder for $48, and shoppers say it's 'sturdy and secure' Watch More Piego Connally, assembly team leader at the Fairfax Assembly plant in Kansas City, Kansas. — Source: General Motors These factories are set to produce new products General Motors plans to retool its Orion Assembly plant to produce gasoline-powered full-size SUVs and light-duty pickups starting in early 2027 in response to strong demand for these vehicles. Originally, Orion was set to be reconfigured for electric vehicle production, but GM has announced that its Factory Zero electric vehicle plant in Detroit will be the dedicated facility for manufacturing the Chevrolet Silverado EV, GMC Sierra EV, Hummer EV, and Cadillac Escalade IQ. GM's Fairfax plant will continue to be retooled to produce the next generation of the Chevrolet Bolt EV, with production expected to begin by the end of the year. However, the automaker announced that Fairfax will share production duties with the internal combustion version of the Chevy Equinox in mid-2027 and also focus on building the next generation of affordable EVs. Furthermore, GM also stated that some of its funding will be allocated to the Spring Hill plant, where it plans to manufacture the gasoline-powered Chevrolet Blazer in 2027, alongside Cadillac's gas-powered XT5 crossover and the Cadillac Lyriq and Vistiq EVs. A Chevrolet Silverado pick-up truck at a dealership in Colma, California, US, on Friday, Jan. 26, 2024. — Source: Getty Images GM's tariff response General Motors's multi-billion-dollar investment in U.S. factories comes at a time when President Donald Trump's tariffs on vehicle imports are putting direct pressure on the auto industry. Previously, GM indicated that these tariffs would cost the company between $4 billion and $5 billion this year, prompting executives to revise GM's full-year earnings guidance. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. According to GM sources who spoke with Automotive News and CNBC, production of the gas-powered Equinox will move to the Fairfax plant to supplement the current output in San Luis Potosi, Mexico. This change means that the Equinox manufactured in Mexico will be designated for overseas markets. Production of the Blazer will also shift from Ramos Arizpe, Mexico, where it is currently produced alongside the Chevy Blazer EV and the Ultium-powered Honda Prologue. GM said in its statement that this investment will help it reach the capacity to build more than 2 million cars per year in the U.S. 2025 Chevy Equinox 'We believe the future of transportation will be driven by American innovation and manufacturing expertise,' GM CEO Mary Barra said in a statement. 'Today's announcement demonstrates our ongoing commitment to build vehicles in the U.S and to support American jobs. We're focused on giving customers choice and offering a broad range of vehicles they love.' The investment announcement has been viewed as a win by prominent labor leaders, who see it as a direct reinvestment in a unionized labor force. In a statement, UAW President Shawn Fain, who previously aired direct support of Trump's tariffs, hailed the levies as a step forward for American labor. 'GM's decision to invest billions in American plants and prioritize U.S. workers is exactly why we spoke up in favor of these auto tariffs,' Fain said in a June 11 statement. 'The writing is on the wall: the race to the bottom is over. We have excess manufacturing capacity at our existing plants, and auto companies can easily bring good union jobs back to the U.S.' Final thoughts In remarks during a Deutsche Bank automotive investor conference on June 11, GM CFO Paul Jacobson confirmed that the automaker's multi-billion-dollar decision was made in response to Trump's tariffs, adding that though it's a lot of money, it can invest in what's next for the auto industry. 'A lot of the fear from talking to investors was that the policies that are being enacted by the administration were going to create a significant run on capital,' Jacobson said. 'Four billion dollars is a lot of money, but I think we've been able to thread that in ways that are capitalizing on the next generation of vehicles coming in, to do it efficiently, not building walls that we don't need to build where we can fill plants up, and also keep our capital forecast in line and consistent with where we've seen it.' At the same time, the company is relying on its flexibility. He pointed out that the improvements at the facilities at Fairfax and Spring Hill will be designed to adjust output based on customer demand for either gasoline or electric vehicles. 'That optionality is really important and critical for us as we move forward, being able to respond to where EV demand is going to be,' Jacobson said. About the Author James Ochoa View Profile
Reuters
an hour ago
- Reuters
FAA says probe closed into SpaceX Starship Flight 8
WASHINGTON, June 12 (Reuters) - The Federal Aviation Administration said on Thursday it closed an agency-required investigation into a SpaceX Starship Flight 8 mishap, citing the probable cause as a hardware failure in one of the engines. SpaceX identified eight corrective actions to prevent a re-occurrence and the FAA said it verified SpaceX implemented those prior to the Starship Flight 9 mission in late May.
Reuters
an hour ago
- Reuters
Meta signs deal for advanced geothermal power in New Mexico
NEW YORK, June 12 (Reuters) - Meta (META.O), opens new tab signed an agreement with XGS Energy to help develop 150 megawatts of advanced geothermal electricity in New Mexico to power the Facebook parent company's artificial intelligence expansion, the companies said on Thursday. Giant technology companies like Meta are striking unprecedented power deals to secure massive amounts of electricity for the data centers needed to develop AI, which is a top driver of the record U.S. power consumption projected for 2025 and 2026. Geothermal energy, which does not produce climate-warming carbon emissions, has become a popular source of electricity for Big Tech companies, many of which have emissions reduction goals. Unlike conventional geothermal power production, advanced geothermal does not rely on natural water sources. Last year, Google announced plans to fuel its data centers with advanced geothermal power produced by Fervo Energy. While 150 megawatts is a tiny fraction of the many gigawatts of power sought by technology companies to power AI, it would represent about 4% of total U.S. geothermal production. New Mexico, which lays claim to a section of the world's largest shale oil basin, has 160,000 megawatts of untapped geothermal power generation potential. The phased-in project between XGS and Meta is projected to be operational by the end of the decade. The advanced geothermal electricity will be deployed to the electric grid and support Meta's operations in the state. 'With next-generation geothermal technologies like XGS ready for scale, geothermal can be a major player in supporting the advancement of technologies like AI as well as domestic data center development," Urvi Parekh, Global Head of Energy at Meta said in a written statement. "We're excited to partner with XGS to unlock a new category of energy supply for our operations in New Mexico,' he said.
