GM to Invest $336 Million in Detroit-Hamtramck Plant to Build Chevrolet Volt ER-EV
By Scott Doggett December 7, 2009
General Motors announced this morning that it will invest $336 million in the Detroit-Hamtramck assembly plant to begin production of the Chevrolet Volt extended-range electric vehicle in 2010.
This will brings GM's combined Volt-related investments in Michigan to $700 million, covering eight facilities. Detroit-Hamtramck will be the final assembly location for the plug-in Volt hybrid, using tooling from Grand Blanc, lithium-ion batteries from GM's Brownstown Township battery pack manufacturing facility, camshafts and connecting rods from Bay City, and stampings and the Volt's 1.4-liter engine-generator from Flint.
"We expect the Detroit-Hamtramck plant will be the first facility in the U.S. owned by a major automaker to produce an electric car. It is the hub for the wheel that we began rolling in 2007 when the Volt debuted at the North American International Auto Show in Detroit," said Jon Lauckner, GM vice president of global product planning.
"Since then, the field of challengers and partners has grown significantly. This competition will expedite the development of electric vehicle technology and infrastructure," he said.
After the Volt's debut in January 2007, other automakers announced six plug-in hybrid or electric vehicles later that year, followed by 19 introductions in 2008 and five more this year.
In addition to GM's $700 million in Volt-related facility investments, there are the many suppliers, utility companies and organizations investing in Michigan and the U.S. to support Volt production and electric vehicle development.
In August, the U.S. Department of Energy selected 45 companies, universities and organizations in 28 states for more than $2 billion in awards for electric drive and battery manufacturing and transportation electrification.
To reduce cost and maximize flexible manufacturing techniques, some equipment for Volt production is being reused from other GM facilities and installed in the Detroit-Hamtramck plant's body shop.
The Volt will be built on the existing assembly line at Detroit-Hamtramck. Assembly of Volt prototype vehicles will begin in the spring, with the start of regular production scheduled for late 2010. Volt pricing has yet to be announced.
Detroit-Hamtramck opened in 1985 and currently employs about 1,200 workers, including 1,100 hourly union workers.
"This investment is great news for the workforce as it helps pave the way for the future and the electrification of the automobile," Cal Rapson, vice president and director for UAW International Union, said in a statement.
The Volt is designed to drive up to 40 miles on electricity without using gasoline or producing tailpipe emissions. When the Volt's lithium-ion battery is depleted of energy, a gasoline engine-generator starts up and supplies electricity to the powertrain, extending the vehicle's range to about 300 miles before more electricity or gasoline is needed.
The Detroit-Hamtramck assembly plant straddles the border between Detroit and Hamtramck and is located about three miles from GM's headquarters. It has been used for production of Buick, Oldsmobile, and Cadillac vehicles.
Its 362-acre site was once an inner-city neighborhood known as Poletown, but was razed and converted to a $500 million assembly plant in 1985. Poletown was the location for 1,200 homes and businesses, and GM was simultaneously applauded and criticized for the neighborhood's destruction.
The auto factory was one of the most advanced when it opened, and was part of a modernization effort for GM that also included the Buick City complex in Flint. Some of the advances included a modular paint system, electric (rather than hydraulic) robots, and a plan for paperless operations.
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