Production at Plant Zero

[renf]

I believe that GM announced two years ago that they would
invest about $2.1 billion to convert Detroit-Hamtramck assembly into Plant Zero.
According to Automotive News, the following number of
vehicles were produced at some local plants
Ford Dearborn 31,720 F-150s
Jefferson North 22,664 Jeep products
Mack Ave Truck 13,514 Dodge trucks
Factory Zero 2,750 Hummers

It appears that Plant Zero is assembling relatively few
vehicles. Do I have my numbers confused or is there an
explanation for the limited production at Plant Zero?
Thank you.

[Richard]

It’s probably a case of testing the waters with a low production product,it will highlight system shortfalls before implementing systems in high production lines where if the line shuts down to improve it it will be a lot more costly.

All of this EV wet dream is just as new to the manufacturers in building them as it is with us buying them,just on a different scale.

You cannot let the numbers impress you,$1 billion to them is like $1 to us little people.

In 2022 GM total revenue was $156.7 billion,it actually did not cost them $2.1 billion,it was a majority local and fed funds,so it’s not like they were out of pocket that amount.

But this whole EV thing was actually hatched back in the bailout,in order to receive it the manufacturers had to agree to start incorporating them in the future,that is a part of what is driving the mad rush,the clock running out on the agreement.

I am sure they want to be dealing with EVs about as much as a majority of everybody else,they are being forced into them just like we are.

[MikeM]

No surprise. They are making electric Hummers there. Your numbers are correct. They built a total of 4890 last year.

[renf]

Thank you for all the information. I admit that I have a hard time
conceptualizing one billion dollars. But when you mention that GM's
revenue last year was about $157 billion, I can see that $2 billion is
only a little more than a rounding error.

Thanks.

[sirrealone]

I thought I saw a headline on Detnews last month where they acknowledged that EV production numbers were slow for 2023 so far, but expected to pick up. Was probably behind the paywall, so nothing more than that.

[JBMcB]

They are setting up multiple lines in Hamtramck. The Hummer line is the first that's up and running. They are still working on setting up the other line [[or two, I forgot how many they are installing.)

Everything being shut down for a year or two has thrown off the timelines.

[Burnsie]

Google can be everyone's friend here.
https://electrek.co/2023/05/01/gm-pl...-silverado-ev/
"GM’s new EV parts plant is near the Orion Assembly plant to help streamline production of the upcoming Silverado EV pickup.

Although GM is planning to build the electric truck alongside the GMC Sierra at its Factory Zero in Detroit later this year, the automaker will expand to Orion as a second assembly in 2024. Altogether, GM expects to be able to build around 600,000 electric trucks annually."

[Richard]

They are setting up multiple lines in Hamtramck. The Hummer line is the first that's up and running. They are still working on setting up the other line [[or two, I forgot how many they are installing.)

Everything being shut down for a year or two has thrown off the timelines.

What level of automation is being implemented in the new lines,is it increasing or decreasing?

Conflicting reports,some have it at it is 45% more expensive for a manufacturer to build EVs over ICE.

Even though in Europe EVs might reach price parity with gasoline and diesel vehicles, no-frills small cars might become less affordable for those in other global markets—unless automakers can find a way to continue cost-cutting in their supply chain and manufacturing methods.

https://www.greencarreports.com/news...es-get-cheaper

London has moved forward with a $15 per day fee in order to have the ability to operate a ICE vehicle in the city.

That’s an average of $450 per month,just for the ability to drive a car in the city.

We are following the trends of Europe.

For city dwellers you can buy an EV about the same size as the little Fiats,for $7600.

Nissan has one that is larger for under $25,000

If they reach the production capacity of 600k cars,who are they going to sell them to and at what price.

For somebody that lives and works in the city,that little $7500 EV would probably fit the needs of 75% of the residents in their daily life,if they need to go out of town they can rent a Tesla.

I kinda think long term,auto manufacturing in the U.S. is on its last legs,no way in the world a unionized shop or manufacture is going to be able to compete with the market that is already established out there that has started out with zero legacy costs.

The K27, a vaguely Fiat 500-looking hatchback is the cheaper of the two, with a 17.7-kWh battery, an advertised range of up to 100 miles, and a top speed of 63 mph, making it capable of highway speed. Seven hours on a 240-volt feed is said to be enough to fully charge it, meaning it'll always be ready for a drive if left hooked up overnight.

The cost? As low as $12,999 after accounting for federal tax credits, though those with the budget to net all of the said tax credit may find Kandi's pricier option, the K23, more appealing.

Sized more like a Honda Fit [[RIP), the K23 is a subcompact EV with a significantly larger battery, at 41.4 kWh. Accordingly, its 28-horsepower electric motor can pull it to 70 mph, and as far from home as 188 miles, or 38 further than a base Nissan Leaf can go, and at a lower price to boot. Federal tax incentives included, the Nissan starts at $24,100, and the Kandi, at $22,499.

https://www.thedrive.com/news/35325/...car-in-america

The Chinese K27 that is being made for the U.S. market is not a bad looking little car,it sells for $12k and has already knocked over 1/2 of the new EV start ups in Europe,out of the EV game.

Americans as a rule do not care about other Americans ability to make a living because everything they buy is cheap Chinese made,the only thing really left is the car.

Can U.S. manufacturers compete with a $12k Chinese made car?

Even in Detroit when it comes to the pocketbook,there is no loyalty over cost when it comes to brands.

We are just brushing the dust off of the plans when it comes to EVs while China has already dominated the world in production and price.

2021 China was already producing 3.5 million EVs with the capacity already built to quadruple that.

Their production levels are increasing 200 - 300 % per year and their largest manufacturer of the more pricy sedan will reach their goal of 650,000 units per year - next year.

In 2022 the U.S. manufactured 918,000 EVs and has a 3% YOY growth rate compared to Chinas 200-300 % ?

In December 2022 the average sold price for an EV in the U.S. was $61,500.

Unless we become racist and slap massive tariffs on imported technology the U.S. and Canadian auto manufacturing sector is already smoked before it even got off the ground,at the cost of trillions wasted.

From EVs to everything green energy wise,we are allowing China to dominate our energy sector,those laid off factory workers in Detroit and Canada will not be able to go build solar panels or wind turbines because China can do it cheaper,they already do.

The irony is we are paying trillions in taxpayers dollars in order to build the foundation for them to step in,if we are going to step into this green wet dream we need to do something to insure that our workers will be able to have a happy ending,otherwise all we are doing now is paying for our own downfall .

Watch what happens in 2030,when the U.S. / Canadian market says they now have the capability to put 600,000 out and the lines start rolling,China will flood the market with their cheaper alternatives,they do not care,they will lose billions.

That is a game invented by the auto manufacturers and China is going to flip it around on them.