DETROIT-HAMTRAMCK

Grand Cadillac to be Built in Detroit

September 22, 2014 by admin 5 Comments

New model will sit at the top of Cadillac’s model range.

The worst kept secret in the automobile industry is this one: Cadillac plans to build a full-sized, rear-wheel drive sedan that will rival the BMW 7 Series, Mercedes-Benz S-Class, Lexus LS and the Audi A8. The top-of-the-range model has only been openly discussed for several years now with two recent concept vehicles, Ciel and Elmiraj, fanning the flames.

Built in Detroit

On Friday, Cadillac issued a press release announcing that its Detroit-Hamtramck assembly plant has been selected to build the unnamed flagship with production commencing in the fourth quarter of 2015.

Cadillac Ciel Concept.

An official preview of the new sedan is months away with GM saying that it would happen in the first half of 2015. Auto Trends has been told that the New York International Auto Show will showcase the new model, with a March 31, 2015, debut tentatively scheduled. The NY auto show will be open to the public from April 3 to 15, 2015.

Another possibility is a Jan. debut in Detroit, host of the North American International Auto Show. Personally, I’m leaning toward Detroit as it is the biggest stage for Cadillac’s most significant model ever.

The Detroit-Hamtramck facility is a logical choice as GM has invested more than $1 billon in the plant over the past five years. The plant currently builds several Cadillac models, including the ELR plug-in hybrid electric vehicle, the compact ATS coupe and sedan, and the midsize CTS sedan. Retooling for the new sedan is already done, reflecting an earlier $384 million investment commitment.

No Cadillac Models Replaced

GM also put to rest rumors that Cadillac’s XTS sedan would disappear once the new model arrives. Some analysts have looked at that sedan as a “place holder” until the grand sedan appears, but GM noted that the new model “adds to rather than replaces any model in the portfolio.” Likely, the slow-selling ELR will also hang around for at least another model year too.

Newly installed Cadillac President Johan de Nysschen, formerly with Audi and Infiniti, noted that the flagship model will extend GM’s luxury brand’s range. He also pointed out that the vehicle will lift Cadillac in other ways. “In addition to new technology in the car itself, we are instituting innovative manufacturing techniques to assemble it with the precision deserving of a luxury make,” stated de Nysschen.

Cadillac sales are down 4.7 percent year-to-date in a market that is experiencing double-digit increases. The brand should erase its shortfall by year end as new ATS coupe and Navigator models draw people to Cadillac showrooms.

Cadillac Elmiraj Concept.

Omega Platform

The flagship Cadillac will be built on GM’s all-new Omega platform, itself derived from the Alpha platform underpinning the ATS and CTS. Even so, the cost for launching the new platform cannot be paid by a vehicle selling for upwards of six figures, given that fewer than 10,000 units will be sold each year.

Auto Trends believes that there are two models that will ultimately be derived from Omega: Buick’s large coupe, what likely will sport the Riviera moniker, and the next generation Escalade SUV. The most recent generation Escalade was introduced for the 2015 model year, but its run is expected to be a short one. My guess is that the Riviera will debut by 2017 and the Omega-based Escalade by 2018.

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GM Provides $449 Million for Next Chevrolet Volt

April 11, 2014 by admin 2 Comments

The second-generation Chevrolet Volt to debut for 2016 model year.

Sales of the Chevrolet Volt fell by 1.6 percent in 2013 to 23,094 units, but that isn’t stopping General Motors from pressing forward with its plans to bring the second generation of its unique hybrid-electric car to the market. Sales of the Volt are far below the 45,000 annual units the automaker had initially projected for calendar year 2012, a model that has also spawned Opel/Vauxhall, Holden and Cadillac variants.

Vehicle Electrification Investment

This week, GM announced that it would invest $449 million to upgrade the processes at two of its manufacturing plants Detroit-Hamtramck ($384 million) and Brownstown Battery Assembly ($65 million) as it prepares to introduce its updated PHEV models. The investment made in Hamtramck since 2009 will now top $1 billion, part of a $2.8 billion technology expenditure the automaker has made over the past five years in Michigan alone.

Detroit-Hamtramck will receive equipment upgrades, new body shop tooling, and other improvements to build the second generation Chevy Volt and two other products. Its Brownstown investment will support the next generation of lithium-ion battery production and other battery systems.

The Chevrolet Volt and like models are known as extended-range vehicles, powered by an electric propulsion system. The current models run on electric-fed power for upwards of 38 miles before a 1.4-liter gasoline generator kicks in. That generator sends energy to the propulsion system to turn its wheels. At present, Detroit-Hamtramck produces PHEVs for markets in 33 countries; additional production capacity is reserved for building the midsize Chevrolet Malibu and large Chevrolet Impala sedans.

Brownstown Battery is located south of Detroit and is the sole plant producing lithium-ion batteries for GMs PHEVs. GM says that it is a landfill-free plant, one made possible in part by a US Department of Energy grant. It is also the first high-volume battery plant of its kind operated by a major car manufacturer.

Next Generation Chevrolet Volt

What GM will do to improve upon its Voltec platform is not clear although the automaker would like to extend its electric-only range, perhaps to somewhere between 50 and 60 miles. The automaker may also produce a lower cost base edition with a smaller battery pack, one with a range somewhat closer to the current 11-mile range for the 2014 Toyota Prius Plug-in. That would allow GM to cut the Volts base price, even pushing it below the $30,000 threshold. However, any reduction in range will also reduce the federal tax credit many customers receive, currently pegged at $7,500. The Prius PHEV is assisted by a $2,500 tax credit as per the EPA.

Beyond the Chevrolet Volt and its current variant, GM may bring out a crossover version, possibly reserving that model for Buick or GMC. What GM also wants is a model better suited to take on the Tesla Model S, a long-range electric-only vehicle. If GM goes with such a model, it could replace the Cadillac ELR and compete wheel-to-wheel with Tesla. Full vehicle electrification and a 200-mile range? We’ll see.

GM Recall Challenge

GMs electrification news comes as the company is embroiled in an ignition safety recall for six retired vehicles 2005-2010 Chevrolet Cobalt and Pontiac G5; 2003 to 2007 Saturn Ion; 2006 to 2011 Chevrolet HHR; 2006 to 2010 Pontiac Solstice; and 2007 to 2010 Saturn Sky. GM CEO Mary Barra has provided testimony before Congress and dealers have begun making repairs to the more than 2.6 million affected vehicles.

Cadillac ELR to Make Detroit Debut

December 18, 2012 by admin 2 Comments

Voltec technology comes to Cadillac.

The Cadillac ELR, a four-passenger electrified coupe, will make its formal debut at the North American International Auto Show in Detroit this January. This vehicle, based on a modified version of the platform that powers the Chevrolet Volt, will be built at Detroit-Hamtramck with production expected to begin in late 2013. GM made its announcement today and sent out a shadowy teaser photo for public consumption.

Teased: 2014 Cadillac ELR

Converj Concept

The ELR is an extended-range electric vehicle with a backup gasoline engine. Its body, however, may be its most notable feature as it is based on the concept Converj, a model first showcased at the 2009 NAIAS. The vehicle was green-lighted, canceled and resurrected as GM worked through bankruptcy and its reorganization, with GM giving this car its go ahead in 2011. In October, the automaker announced that it would invest $35 million in the plant to ready it for ELR production.

Bringing the ELR to the market comes as GM ramps up Cadillac visibility in North America and abroad. In 2012, Cadillac was given two new models the larger XTS sedan and its all-new ATS compact sedan. The Cadillac ATS has been welcomed with critical acclaim, evoking comparisons with the segment-leading and benchmark-setting BMW 3 Series.

New Models

New Cadillac products in the pipeline besides the ELR are the next generation Escalade, an updated CTS sedan and possibly several new body styles based on the ATS. Cadillac may also bring to the market a smaller SUV to slot below the Escalade.

Bringing the ELR to the market presents a significant risk to GM, but it does allow the company to spread out its EV engineering costs across more model lines. The Chevrolet Volt built alongside the Opel/Vauxhall Ampera for European markets and the Holden Volt for Australia. Sales of the Chevrolet Volt this year are running at a pace that is more than double what GM sold in 2011.

Unlike the Volt and Ampera, the ELR will target a different buyer as its price point will likely begin north of $60,000. That’s about $20,000 more than the Volt for a vehicle that seeks to establish a footing in the luxury segment. Then again, in this segment price is rarely a chief factor for car shoppers.

More Information

Auto Trends will have more information about the 2014 Cadillac ELR following its Jan. 15 press debut as well as other General Motors news.

GM Invests $35 Million For Cadillac ELR Plant

October 16, 2012 by admin 1 Comment

Cadillac ELR Coupe — This stylish coupe will be made in Michigan.

The Chevrolet Volt will soon be joined by an upscale cousin. The Cadillac ELR, a svelte coupe that is based on the Cadillac Converj concept, will go into production in late 2013. This car will be built at the Detroit-Hamtramck Assembly Plant in Michigan, a manufacturing facility that will receive a $35 million upgrade to handle production of the extended-range Cadillac ELR.

Keynote Speech

GM announced its investment at the SAE Convergence Conference in Detroit today. Mark Reuss, General Motors North America President said in his keynote address, “The ELR will be in a class by itself, further proof of our commitment to electric vehicles and advanced technology. People will instantly recognize it as a Cadillac by its distinctive, signature look and true-to-concept exterior design.”

The sleek Cadillac ELR will be powered by an electric propulsion system that features a T-shaped lithium-ion battery, an electric drive unit and a four cylinder engine. That engine is expected to be different from the one used in the Chevrolet Volt. Indeed, although the two models share many of the same technologies, the bodies will be strikingly different. The ELR’s interior will be unique too from the roof liner to the dashboard and down to the floor panels.

Customer Base

GM has yet to announce pricing for the ELR, but this car will seek to capture a customer base that includes current luxury car buyers as well as electric vehicle enthusiasts. Volt currently retails for about $40,000 and ELR is expected to top $60,000. Cadillac has not released production goals for this vehicle yet.

Along with the ELR, Cadillac is in the midst of its most aggressive new model line rollout ever. For the 2013 model year, both the XTS and ATS were introduced. A new version of the Escalade is up next and both the CTS and SRX will be updated soon thereafter. Its compact ATS line will most likely expand too, perhaps including coupe, convertible and wagon models to effectively compete against the BMW 3-Series.

GM is also moving Cadillac global and has tasked Robert E. Ferguson with the job of leading Cadillac. Ferguson reports directly to GM CEO Don Akerson. Cadillac is gaining sales in China and is increasing its presence in Europe. Look for GM to match Audi, BMW and Mercedes-Benz in global reach, with the ELR included in that effort.

Michigan Plant

Detroit-Hamtramck will continue as the sole operating facility for GM’s extended-range electric vehicles. Along with the Cadillac ELR, the plant produces the Chevrolet Volt, the Holden Volt and the Opel Ampera, the latter vehicles exported to markets in Australia and Europe respectively.