Tag Archives: GM

Buy/Drive/Burn: Economical American Compacts From 1982

Our recent Rare Rides coverage of the Chevrolet Citation made one thing very clear: We need more Citation content. Today’s 1982 Buy/Drive/Burn lineup was suggested by commenter eng_alvarado90, who would like to see all of you struggle. Citation, Aries, Escort, all in their most utilitarian formats. Let’s go.

Chevrolet Citation

The Citation is in its third model year for 1982, and sales have already fallen far from their initial peak of 800,000. The bloom is off this rose, but GM is still on track for six-digit sales this year. Sticking firmly to economy and utility, today’s Citation is a five-door hatchback equipped with the 2.5-liter Iron Duke inline-four and paired to a four-speed manual. Throttle-body injection is new this year and means 90 horses are underfoot. There’s also a new horizontal slats grille.

Dodge Aries K

The Dodge Aries is still new and is in its second model year for 1982. Chrysler started out strong last year with over 300,000 sales, and will likely reach that number again in ’82. Today’s Aries is the four-door wagon, as Chrysler does not offer a hatchback K-car at this level. Underhood is the base 2.2-liter Chrysler inline-four, which uses a two-barrel carb. Eighty-four horses are at the driver’s command, shifted through a four-speed manual. New this year: rear windows roll down on sedans and wagons, replacing the fixed glass.

Ford Escort

Ford’s Escort is also in its second model year for 1982. The American market Escort was supposed to be very similar to the European one for parts sharing purposes. However the respective design teams each headed their own direction, and the two cars share only an engine and transmission. Today’s five-door Escort hatchback is new for ’82, along with a new grille and presence of the familiar Ford Blue Oval. The base 1.6-liter CVH engine gets a high output version this year, which increases power by about 10 horses, to 80. Power is delivered to the front via a four-speed Ford MTX manual.

Economy and cheap driving are available to you, and they’ll probably hold up for at least three years before falling apart. Which gets the Buy?

[Images: GM, Chrysler, Ford]

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Prelude to the Prologue: Honda Names Next EV

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Honda

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Despite issuing some of the most realistic messaging pertaining to electric vehicles you’re likely to encounter within the automotive industry, Honda has started to come around to making bold commitments that it’ll probably have to revise. In April, the company stated that it wanted EVs and fuel-cell vehicles to make up 40 percent of all new-vehicle sales by 2030 — with the figure climbing to 100 percent by 2040.

Right now, its alternative energy products include the Honda Clarity and marvelously executed Honda E (neither of which are likely to be available in your area). But more vehicles are coming and the brand recently announced the starting point for the business’ battery-electric offensive targeting North America. The whole shebang is supposed to kick off in 2024 when the all-electric “Prologue” goes on sale. 

Honda announced the vehicle on Monday, stating that it would be the first in a series of EVs aimed at our market. But your author cannot stop but think of the obvious connections Honda is making to the Prelude (below), though the company never mentioned it directly and was probably wise not to sully by attaching the name to what’s likely to be another vanilla crossover.

<img data-attachment-id="1767352" data-permalink="https://www.thetruthaboutcars.com/2021/06/prelude-to-the-prologue-honda-names-next-ev/1997-honda-prelude-type-sh/" data-orig-file="https://www.thetruthaboutcars.com/wp-content/uploads/2021/06/97Prelude_TypeSH-source.jpg" data-orig-size="2916,1903" data-comments-opened="1" data-image-meta="{"aperture":"0","credit":"Wieck","camera":"Nikon SUPER COOLSCAN 4000 ED","caption":"1997 Honda Prelude Type SH.","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"1997 Honda Prelude Type SH","orientation":"1"}" data-image-title="1997 Honda Prelude Type SH" data-image-description="

Honda

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Remember how Mitsubishi attempted to leverage the Eclipse name to help draw attention to the Eclipse Cross? Presumably, so does Honda and we expect it doesn’t want to invite the same kind of comparisons that might enrage automotive journalists who have a tendency to fetishize old models.

The Prologue will be the first of two vehicles that Honda is co-developing with General Motors and will borrow the American firm’s Ultium battery pack. Vehicle number two will be an Acura model that’s yet to be named and is likely to use the same architecture.

From Honda:

In addition to the Honda Prologue, the company will introduce an all-electric Acura SUV in the 2024 calendar year. Both will utilize the highly flexible global EV platform powered by Ultium batteries based on the company’s strategic partnership with General Motors. Honda also plans to launch a new series of EV models in the second half of the decade based on a new e:Architecture, with development led by Honda.

“Our first volume Honda BEV will begin our transition to electrification and the name Honda Prologue signals the role it will play in leading to our zero-emission future,” said Dave Gardner, executive vice president of American Honda. “The Prologue will provide our customers with a battery-electric SUV with the excellent functionality and packaging they’ve come to expect from Honda.”

This is a pretty slick way of Honda diving into EVs in North America, without having to commit itself to global battery platforms. But that’s really only going to be praiseworthy if the Japanese automaker’s earlier reservations about EV adoption turn out to be correct. Its Clarity models are presently fielding just about all of its alternative-energy aspirations, with the adorable Honda E (below) taking care of a limited number of urban EV fans since its 2020 introduction. However, the battery-driven Clarity EV was pulled from the market that same year, mildly undermining its commitment to electrification.

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Honda

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[Images: Honda]

Rare Rides: A 1976 Pontiac Sunbird, Practical Malaise Luxury

Today’s Rare Ride marks the third time we’ve featured a Pontiac Sunbird in this series. The first Sunbird was from 1978 and presented itself as the Safari Wagon. But that was just a renamed Astre and not a real Sunbird. The second Sunbird we saw was a convertible with a 2000 in its name, a J-body from a time of naming turmoil at Pontiac.

In contrast, the Sunbird we have here is the original: An economical and optionally luxurious car that debuted in the Seventies without a confused identity. Your author’s never seen one in real life.

Sunbird debuted in 1976 as a replacement for the Vega-adjacent Astre. The Astre and Sunbird coexisted for a couple of years, as seen above in the confused wagon from 1978. Though a new car, the Sunbird remained on the same H-body Vega platform as its Astre predecessor. Available only with two doors, the subcompact was presented only as a two-door sedan for 1976. The following model year added a more aggressive hatchback. For 1978 and 1979, the Astre wagon was refreshed visually joined the lineup as the Sunbird Safari Wagon. The first Sunbird continued through the 1980 model year but was limited to two body styles in its final offering.

The rear-drive 1976 Sunbird was equipped with a base engine from the Vega, a 2.3-liter inline-four known as the 2300 (78 hp). The next year customers were rewarded with a new base engine: the powerful 2.5-liter Iron Duke. It produced between 84 and 90 horsepower dependent upon model year. Big spenders selected the Buick 3.8 V6 and its 110 horses, or the Chevrolet 305 (5.0L) as an option in 1978 and 1979. Transmissions on offer were a four-speed manual or three-speed automatic.

Customers could option their Sunbird with different packages to emphasize a luxury or sports personality. The Formula package was popular and included upgraded handling, spoiler, and decals. A quick seller, the Sunbird proved popular and GM sold nearly 480,000 Sunbirds over five model years. 1980 was a long-run year, as dealers needed inventory to hold them over until the ’82 arrival of the front-drive J platform J2000. It debuted at the start of Pontiac’s branding experimentation.

Today’s Rare Ride is firmly on the luxury end of the Sunbird spectrum. Dark red with a white vinyl coach roof, it’s got alloy wheels, whitewalls, a plush velour interior, and an automatic transmission. There’s even V6 power and air conditioning. It’s traveled 17,000 miles since 1976 and is in spectacular condition. The price is also spectacular: $29,000.

[Images: Pontiac]

Toyota Expanding Indiana Assembly Line, Adding Two New SUVs

Toyota is moving production of the Sequoia to Texas and bringing two new three-row SUVs to its Indiana plant.

Toyota Motor will add two new, three-row SUVs to its already large line-up of sport-utility vehicles, the automaker announced.

Though Toyota revealed only a few details, it indicated one of the new models will be sold through the Toyota division, the other through Lexus. To bring them online, meanwhile, the Japanese giant plans to invest $803 million to upgrade its plant in Princeton, Indiana.

Since it was opened in 1998, Toyota has spent $6.6 billion on the Princeton factory, known as TMMI. It currently produces three Toyota-branded light trucks, the full-size Sequoia, the latest-generation Sienna minivan that is produced solely as a hybrid, and the Highlander SUV which is produced both in hybrid and conventional gas versions.

The plant soon will have a bit more space available, even without the upgrade. Production of the Sequoia model will be transferred to Toyota’s San Antonio plant in 2022. That’s part of a broader shift in its manufacturing footprint coinciding with the launch of a new Alabama factory that will operate as a joint venture with Mazda.

New SUVs will target growing families

Toyota Indiana plant (TMMI) exterior

Toyota is investing $803 million into its Princeton, Indiana plant to build two new large SUVs.

The new models going into TMMI will be “designed with the active Gen Y American family in mind,” Toyota officials said, meaning they will be offered with three rows and seating for up to eight. Today, the flagship brand offers four different three-row SUVs, the Highlander, 4Runner, Land Cruiser and Sequoia. Lexus offers three rows in its LX, GX and RX utility vehicles.

Both new models will be “electrified,” though Toyota did not say whether that means conventional hybrids, like the Highlander, or more advanced plug-in hybrids like the RAV4 Prime. Neither of the new models is expected to offer an all-electric drivetrain, though the automaker announced in February plans to introduce three battery-electric vehicles for the U.S. market by mid-decade. At that point, Toyota previously said, it expects to offer electrified options for virtually every product in its line-up.

“This investment and new vehicle lineup will allow us to continue our work with electrification, expand our portfolio to about 70 models globally by 2025, and meet the needs of our customers while we accelerate toward carbon neutrality,” Ted Ogawa, CEO of Toyota Motor America, said in a statement.

Toyota’s Indiana plant produces the Highlander and Sienna before adding the two new vehicles.

Plenty of tech for Gen Y buyers

The new SUVs will use some of Toyota’s newest technologies, starting with a smartphone-as-key system allowing a motorist to operate it through an app, rather than a conventional keyfob.

The app also will allow the new models to park remotely, letting a driver exit before trying to squeeze the SUV into a tight space. And while it is unclear where the technology will first be used, the SUVs also will “allow for hands-free driving in certain conditions.” That sounds similar to semi-autonomous technologies now coming to market such as Tesla’s Autopilot, General Motors’ Super Cruise and the upcoming Ford Blue Cruise. Toyota has not offered details, such as whether it will charge a subscription fee as its competitors do.

Toyota has invested heavily in autonomous vehicle research and this week revealed it will buy the self-driving vehicle arm of ride-sharing service Lyft for $550 million.

The plans for the TMMI plant are expected to create another 1,400 jobs. This also will mark the first time a Lexus model will be built at the factory.

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Automakers Suspend Operations, Change Equipment Due to Chip Shortage

Ford is temporarily suspending production at its Kansas City assembly plant to deal with the shortage.

Automakers continue to search for ways to deal with the semiconductor chip shortage impacting the industry on a global scale.

Most companies cut back production and shift available chip inventory to high-profit vehicles like pickup trucks. Seemingly no automaker is immune to the problem, including pricey luxury and sports car makers. Mercedes-Benz, Porsche and others all recently announced moves to deal with the shortage.

This week is not different with Daimler, Stellantis and Subaru reporting today they are taking new measures to account for current run of chip shortages, both in the U.S. and in other facilities around the world.

New announcements

Ford plans to extend the shutdowns at plants that build its F-150, Ford Transit, Ford Explorer and Lincoln Aviator, Ford Edge/Lincoln Nautilus and Ford Mustang. The Kansas City Assembly Plant that builds its top-selling F-150 and Transit commercial van suspend operations for the weeks of May 3 and 10. It’s currently closed down.

GM is slowing production of its van at its Wentzville plant to deal with the chip shortage.

The Flat Rock, Michigan plant, which builds the Mustang, and Chicago plant that builds the Explorer and Aviator will also be down the first two weeks of next month. They’ve been down since the week of April 12, according to Automotive News.

The company plans to continue the reduced production of its Super Duty and medium-duty trucks at the Ohio Assembly Plant near Cleveland.

General Motors plans to move its Wentzville (Missouri) Assembly plant from three shifts to just two on a temporary basis starting the week of April 26. It’s cutting van production at the site. Production of its midsize pickups, the Chevy Colorado and GMC Canyon, are unaffected. The company just restarted operations at the facility last week after a two-week shutdown.

Other moves

In what may be the most novel approach to dealing with the issue thus far, Stellantis is using analog speedometers in some its Peugeot models instead of the digital ones they would normally come equipped with.

Mercedes C-Class line at Bremen 2021

Daimler is cutting hours for 18,500 workers at two plants in Germany as it waits for more chips.

The move affects only the Peugeot 308, Reuters reported, which are built in France. The brand sold about 98,000 of the 308 model last year. The 308 is being phased out this fall in favor of a new vehicle. The company may reduce the price as a result of the less advanced speedo.

Daimler plans to reduce hours for 18,500 employees and idle production at its Bremen and Rastatt plants in Germany. Bremen builds the C-Class as well as the GLC, GLC Coupe and the all-electric EQC. The Rastatt plant produces the A-Class hybrid as well as the A-Class sedan, B-Class and GLA compact SUV.

Japanese automaker Subaru Corp. revealed plans to temporarily suspend production at its plant in Lafayette, Indiana. The closure will be in place until the end of April, according to officials. It will affect about 15,000 vehicles for North America, officials noted. The company builds the Ascent, Outback, Legacy and Impreza at the site.

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GM, Ford Among 3 Dozen Michigan-Based Companies Objecting to New Voter Restrictions

GM Chairman and CEO Mary Barra was one of dozens of Michigan-based business leaders who signed a statement about voting rights.

Dozens of Michigan-based companies, including industry giants General Motors and Ford Motor Co., issued a strongly worded statement Tuesday objecting to Republican-sponsored bills that would make it more difficult to vote in Michigan and other states.

This marked the latest in a series of actions by some of the largest U.S. corporations to push back on GOP efforts to limit voting measures, such as mail-in ballots and access to ballot drop boxes, in the wake of former President Donald Trump’s defeat last November.

“Government must support equitable access to the ballot to ensure that all eligible voters can exercise their rights,” declared the statement issued by three-dozen Michigan companies. “Government must avoid actions that reduce participation in elections — particularly among historically disenfranchised communities, persons with disabilities, older adults, racial minorities and low-income voters.”

45 states target voting rights

Ford CEO Jim Farley

Jim Farley, Ford CEO, says ensuring “equitable access to voting” is critical to the long-term success of a free society.

After losing the presidential election, Trump declared the vote had been “stolen,” a claim universally rejected by election officials and the courts. But it has riled up hardcore supporters — like those who staged an attack on the U.S. Capitol on Jan. 6, as well as Republican legislators who have introduced bills aimed at restricting voter access in 45 states.

A bill has already passed in Georgia containing numerous restrictions that even prohibit providing bottles of water to those waiting on line to vote. The new law’s language has been widely criticized as targeting the racial minorities who helped Democrats regain control of the U.S. Senate by voting in the state’s two Democratic senators.

Michigan is one of the states now moving forward with proposed legislation that would, among other things require a voter to attach a photocopy of a government ID when returning a mail-in ballot. It also would ban communities from issuing prepaid return ballot envelopes. The GOP-controlled Michigan Senate is preparing to hold hearings on the measure this month.

Business backlash

That has triggered a strong backlash among Michigan’s traditional GOP-leaning business community. Among the organizations that co-signed the statement Tuesday are the leaders of GM, Ford and Stellantis — the company formed this year by the merger of Fiat Chrysler Automobiles and PSA Group. All four of the major Detroit-based sports teams signed the statement, as did various banks, utilities and other businesses.

Stellantis’ Mike Manley also lent his name to the letter calling for improved voting access.

Mary Barra, the GM CEO, issued an additional statement saying that, “we want to reiterate our belief that the right to vote is the essence of a democratic society and that the voice of every voter should be heard in elections that are conducted with integrity. Last year, we said we would leverage our voice to drive inclusion. Therefore, we are calling on Michigan lawmakers and state legislatures across the nation to ensure that any changes to voting laws result in protecting and enhancing the most precious element of democracy — the right for all eligible voters to have their voices included in a fair, free, and equitable manner.”

The 2020 election saw record voter turnout in much of the country, especially among blacks and other minorities that traditionally have turned out in lower numbers than whites. Michigan saw 5.5 million people go to the polls in November, a record in terms of raw numbers, as well as the highest percentage of the voting-age electorate in 60 years.

Senate leader under fire

The Senate measure in Michigan is being overseen by Majority Leader Mike Shirkey, a Republican who has himself come under fire for comments made on several occasions since Trump was defeated — the then-president losing to Joe Biden after winning in Michigan in 2016.

Donald Trump

President Donald Trump repeatedly claimed the 2020 election was stolen from him.

In February, a recording surfaced revealing that Shirkey told a gathering of Republicans that the Jan. 6 attack was a “hoax,” and had been “staged.” Shirkey said Tuesday the proposed state ballot bill would ensure that every vote will be “handled and counted the same.” He contended that the measure is a “perfunctory step to equitable access.”

The statement issued by Michigan business leaders on Tuesday did not specify what, if any, actions they might take if the bill were approved. Major businesses have taken more direct action in response to the passage and signing of the Georgia law, however.

A nation polarized

Major state businesses, including Delta Airlines and Coca-Cola spoke out harshly. Some have indicated they will consider shifting resources out of the state. Major League Baseball moved the annual All-Star Game to Colorado. And some film and TV projects have been relocated, as well.

The debate about voting rights comes at a time when the nation is as polarized as ever. The majority of Republicans believe the 2020 election was “stolen,” according to numerous polls, even though many major GOP leaders have dismissed such claims.

President Joe Biden took office in January despite claims of voter fraud.

One of the more significant developments has been a shift by many major corporations, a number of which have pulled back on political donations, especially to GOP campaigns.

Protecting the “historically disenfranchised”

In comments to company employees last week, Ford CEO Jim Farley stressed that the company “believes that equitable access to voting rights for all people is the bedrock of a democratic society.”

Echoing widespread concerns that proposed voter restrictions are aimed at minorities, Farley added, “We’re also aware that the right to vote in a free and fair election has been hard won in our nation, particularly for groups that have been historically disenfranchised. That’s why we support initiatives that promote equitable access and do not disproportionately affect any segment of the population.”

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GM Grows Board of Directors’ Diversity with New Whitman, Tatum

Meg Whitman, a technology leader and former head of Hewlett Packard Enterprise, will join the General Motors Board of Directors.

What was already the most diverse board of directors in the automotive industry just go a little more so, General Motors Co. expanding its board, adding Meg Whitman and Mark Tatum to fill the spots.

The move grows GM’s board from 12 to 13 members. Adding Whitman, a former Republican gubernatorial candidate in California and CEO of Quibi Holdings LLC, a media startup, results in women filling seven of the posts on the board. It makes GM the only automaker where women comprise a majority of the board.

Tatum, who is of Asian and African-American heritage, is the National Basketball Association’s deputy commissioner and chief operating officer. Diversity within the company has been a priority for Chairman and CEO Mary Barra since her appointment in 2013.

Diversity is a strength

GM quickly pointed out that the diversity of the company’s newly expanded board isn’t just limited to gender or ethnic background.

Diversity has been a theme during Mary Barra’s tenure as GM’s Chairman and CEO.

The company’s 12 independent directors have senior leadership and board experience in information technology, digital commerce, retail, higher education, investment management, international affairs, defense, transportation, cybersecurity, and pharmaceuticals, among others.

“Our diverse Board of Directors is a competitive advantage for GM as we work to deliver a better, safer and more sustainable world,” said GM Chairman and CEO Mary Barra. “Mark and Meg will bring unique experiences to the Board, especially in technology, brand building and customer experience that will help us drive value for shareholders and other GM stakeholders now and into the future.”

Diversity is a focus in the company’s executive ranks as well. Barra’s overseen a significant shift of women into higher level roles at the company during her tenure. Some of those include Dhivya Suryadevara as Chief Financial Officer, the first-ever woman to hold the job, and Alicia Bolder Davis as the Head of Global Manufacturing.

Others include Ann Cathcart Chaplin, corporate secretary and deputy general counsel; Margaret Curry, vice president, Tax and chief tax officer; Julia Steyn, head of urban mobility and Maven; Kimberly Brycz as senior vice president, Global Human Resources; and Pamela Fletcher, vice president, Global Electric Vehicle Programs. Both Boler Davis and Suryadevara left the company for other opportunities in the last 18 months.

Results are showing

Mark Tatum, deputy commissioner and chief operating officer of the National Basketball Association, will join the General Motors Board of Directors.

The push to diversify, at least by gender, is beginning to get noticed. GM was the top ranked company in the U.S. on the Gender Equality Global Report & Ranking for 2021. It was No. 5 globally, with a score of 71%, up from No. 11 and a score of 68% last year. GM was the only automaker in the Top 100.

Researchers noted GM achieved gender balance at the board level (at the time the report was issued, there were six women on GM’s board). Additionally, women represent 20% of the executive team, 32.2% of senior management and 21.8% of the workforce.

“They offer a living wage and flexible work arrangements to their employees. General Motors is the only company in the U.S. and globally that publishes a mean, unadjusted gender pay gap of less than 3% in all pay bands, and they have a strategy to close the gender pay gap. General Motors also publishes all eight of Equileap’s recommended policies that promote gender equality,” the report noted.

It is compiled by Equileap, a data research firm, which researched 3,702 companies based on 19 gender equality criteria, including gender balance from the board to the workforce, as well as the pay gap and policies relating to parental leave and sexual harassment. The average score for the Top 100 companies globally was 64 percent, an increase of 2 percentage points from last year.

Other automakers making moves

Alexandra Ford English has been nominated for the Ford Motor Co. board of directors.

GM’s top domestic rival, Ford Motor Co., currently has three women on its board of directors and nominated a fourth, Alexandra Ford English, daughter of current Executive Chairman Bill Ford Jr., who is virtually assured of election to the board later this year.

Ford English, 33, recently accepted another board position that elevated her profile. She took on the role as Ford Motor Co.’s representative to the Rivian board of directors. Ford Motor owns an equity stake in the EV maker. She’s held roles in corporate strategy at companies like Tory Burch and Gap Inc. as well as the automaker, which she joined in 2017.

The company’s global workforce is 28% female and 20% of its leadership comprises women. Some of it is top officers include Joy Falotico, president, The Lincoln Motor Co.; Lisa Drake, chief operating officer, North America; Suzy Deering, chief marketing officer; Dianne Craig, president, International Markets Group; Elena Ford, chief customer experience officer; Cathy O’Callaghan, vice president, Controller; and Kiersten Robinson, chief people and employee experiences officer.

Falotico, Drake and Deering have all moved into their roles in the last 12 months with the first two moving from other jobs within the company. Deering arrived at the automaker in January from eBay, where she was global chief marketing officer. She actually took over for Falotico, who now focuses solely on running Lincoln.

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GM Inks New Deal with Innovative EV Battery Maker

GM’s next-gen lithium metal batteries, the expected energy density increase may mean higher range in a similarly sized pack or comparable range in a smaller pack.

General Motors continued its charge to develop better batteries, announcing its partnership with lithium metal battery startup SolidEnergy Systems.

The company, also known as SES, is working on technology that would reduce the size of EV batteries while increasing driving range of the vehicle they’re used in. GM officials have long discussed the need to reduce battery costs, another factor in the production of electrified vehicles is weight.

Batteries are heavy and developing and using a smaller battery equates to weight savings, helping to further expand the improved range afforded by the batteries SES and GM are working to create.

Lighter, farther, cheaper

GM says its lithium metal battery with a protected anode offers the Big Three of EVs: affordability, high performance and energy density. The initial prototype batteries have already completed 150,000 simulated test miles at research and development labs at GM’s Global Technical Center in Warren, Michigan, demonstrating real-world potential, the company revealed.

GM announced a joint development agreement with lithium metal battery innovator SolidEnergy Systems.

The automaker isn’t just working with SES to bring lithium-metal batteries to fruition, but several other companies as well. However, it does have a history with SES, investing in the company six years ago through its GM Ventures arm.

This new deal is the next step in that collaboration, and as part of that progression, GM and SES plan to build a manufacturing prototyping line in Woburn, Massachusetts, for a high-capacity, pre-production battery by 2023.

Results mean EVs for all

“Affordability and range are two major barriers to mass EV adoption,” said GM President Mark Reuss.

GM’s prototype lithium metal batteries were developed at the company’s research and development labs in Warren, Michigan.

“With this next-generation Ultium chemistry, we believe we’re on the cusp of a once-in-a-generation improvement in energy density and cost. There’s even more room to improve in both categories, and we intend to innovate faster than any other company in this space.”

The goal is to incorporate these smaller, more powerful and less expensive batteries as part of the Ultium Platform that will be the basis for a slew of new EVs coming from the auto company. The first of those, the GMC Hummer hits the road this year.

GM is working to complete its $2.3 billion plant to build the Ultium batteries in partnership with South Korea’s LG Chem. The pair is setting up shop in Lordstown, Ohio. Officials recently revealed two more plants could be in the works. The first would be near GM’s plant in Spring Hill, Tennessee.

The company is investing $2 billion at that facility to prepare it to produce Cadillac’s first-ever all-electric model, the Lyriq. GM is investing $27 billion in electric and autonomous vehicles with plans to have 30 EV models available around the world by the end of 2025. The company declared it would end production of gas- and diesel-powered vehicles by 2035.

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Tesla, GM May Get Eligibility for Federal EV Tax Credits Again

2021 Tesla Model S

Buyers the new Tesla Model S may be eligible for a $7,000 tax credit not previously offered.

Tesla and General Motors may be considered polar opposites in many ways, but in one very big way they’re going to be almost bosom buddies: tax credits for EVs.

The market leader in the segment and the hopes-to-be-leader in the segment are soon able to once again access federal tax credits for the next 400,000 electric vehicles each automaker sells, if a new bill from Democrats makes it into law.

The Growing Renewable Energy and Efficiency Now Act (yup, GREEN) provides a new set of tax incentives aimed at renewable energy technologies, or in this case, vehicles. GM and Tesla buyers could get $7,000 tax credits for new EVs, if it passes.

Government getting involved

Chevy Bolt buyers may get to claim a federal tax credit that had been previously unavailable.

President Joe Biden is a proponent for the growth of electric vehicles, pledging to add 1 million new automotive jobs related to EVs and growing the nation’s underwhelming EV charging network by 500,000 by the end of the decade.

The new bill submitted by Representative Mike Thompson (D-California), who is Chairman of U.S. House Ways and Means Subcommittee on Select Revenue, all the other Democratic leaders on the subcommittee signed onto the bill, hoping Congress will take it up under a Democratic-controlled Senate and the Biden administration.

A similar bill was introduced in June 2020, then controlled by Republicans, and it failed. It was the latest of several attempts to reinstate the previous $7,500 tax credit. Democrats have attempted to resurrect the credit several times, each effort shut down by Senate Republicans. Now that Democrats have the final vote in any deadlock, it seems likely to make it through.

How the tax credit used to work and the new version

The original credit, passed during the Obama administration, limited the number of vehicles eligible for the credit to 200,000 vehicles. Tesla hit the mark first in 2018, followed by GM shortly after. Tesla CEO Elon Musk cut the price on vehicles in the U.S. after to help partially offset the loss of the credit.

Used EVs, if they qualify, can fetch a $2,500 tax credit through the GREEN Act.

The new version cuts the credit by $500, but it also changes the structure of the credit phase out after an automaker hits 600,000 vehicles. The first plan reduced the size of the credit in stages over the course of 12 months following hitting the end number. Now it drops to $3,500 for one quarter and then disappears. Owners who bought vehicles in the interim are not eligible to claim the credit retroactively – at this point.

Additionally, the GREEN Act allows used buyers to claim up to a $2,500 tax credit when purchasing a qualifying preowned electric car. The EV must be at least two years old and the sale price cannot exceed $25,000. Income caps for individuals and spouses filing taxes jointly may result in smaller credits, however.

Businesses aren’t being ignored as the bill creates tax breaks for companies and municipalities purchasing electric heavy-duty vehicles, including zero-emissions buses. Twenty percent of the sales price would be eligible for sales over $100,000.

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Fiat Chrysler to Judge: GM’s Being Paranoid, Please Ignore

<img data-attachment-id="1694902" data-permalink="https://www.thetruthaboutcars.com/2019/10/fiat-chrysler-and-psa-flirting-with-a-merging/shutterstock_1487541980/" data-orig-file="http://ghostridermotorcycle.com/wp-content/uploads/2020/08/fiat-chrysler-to-judge-gms-being-paranoid-please-ignore-5.jpg" data-orig-size="1000,750" data-comments-opened="1" data-image-meta="{"aperture":"0","credit":"","camera":"","caption":"","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"","orientation":"1"}" data-image-title="FCA HQ Fiat Chrysler headquarters fca headquarters FCA sign offices auburn hills" data-image-description="

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General Motors desperately wants to reopen a case dismissed last month by a federal judge, but Fiat Chrysler’s having none of it.

The racketeering lawsuit filed by GM against its crosstown rival alleged that FCA secured unfair labor advantages over GM via bribed UAW officials, with the automaker claiming last week that it possesses new evidence capable of convicting its automotive foe. A number of offshore bank accounts fueled the bribery effort, GM claims, with the automaker’s court filing accusing former UAW Vice President (and ex-GM board member) Joe Ashton of being a paid mole.

Gripping stuff, but FCA says it’s seen this movie before — and it’s a stinker.

According to Reuters, FCA has requested U.S. District Judge Paul Borman to pay no attention to GM’s request, saying its rival’s allegations amount to a “third-rate spy movie, full of preposterous allegations.”

The conviction of Ashton and imprisonment of former FCA labor negotiator Alphons Iacobelli, as well as the sweeping federal investigation into corruption and bribery at the highest levels of the UAW gives GM’s lawsuit weight, but the automaker won’t be able to prove anything unless it gets its day in court. Former UAW president Dennis Williams is also named in the suit as a beneficiary of FCA’s alleged bribery scheme.

GM has claimed since the outset that corrupted bargaining practices left FCA with an unfair labor cost advantage over its domestic rivals, costing its own operations billions. It wanted to collect, and still does.

In a court filing early last week, GM claimed that FCA’s bribery cash flowed by way of bank accounts in the Cayman Islands, Switzerland, Luxembourg, Liechtenstein, Italy, and Singapore. FCA says it’s all bunk, stating to the judge that it operates facilities in dozens of countries. As such, the number of offshore accounts is “unremarkable, and certainly not illegal.”

Continuing, FCA said the naming of FCA officials was a “despicable” act reminiscent of the McCarthy witch hunt of the 1950s.

In a letter seen by Reuters on Monday, FCA CEO Mike Manley told employees that GM’s efforts amount to a case of sour grapes.

“It is… clear to me that this series of attacks is directly related to our success in competing and winning where it matters, in the market,” Manley wrote. “The consistent strengths we’ve demonstrated over the last decade will be deployed to even greater effect as we complete our merger with Groupe PSA.”

Unswayed by FCA’s new filing, GM remained adamant that it would reveal “the full extent of harm the FCA bribery scheme caused GM,” stating that, “FCA’s corruption of the collective bargaining process remains undeniable.”

[Image: Daniel J. Macy/Shutterstock]