General Motors currently builds its each of its PHEV (partial hybrid electric vehicle) battery packs at the Brownstown Battery Assembly Plant in Michigan, but some production could be heading overseas sooner rather than later.
According to Autoblog, GM may shift some production to continue qualifying for green vehicle incentives in China. Specifically, the news revolves around the 2017 Cadillac CT6 PHEV, which will be fully assembled in China and shipped to the United States.
The battery packs for the CT6 PHEV will at first be made in Michigan, then exported to China for final assembly. But, under the “Made In China 2025” plan, GM may need to do more of it within Chinese borders. Cadillac has already defended its move to ship the 2017 CT6 PHEV from China to North America due to forecasted low demand. All other CT6s will be assembled in Michigan.
Bill Wallace, GM’s director of global battery systems, told Autoblog the battery production situation is “evolving”, and it’s safe to say some production will begin in China in the future.
Expect at least 31 miles of pure electric range from the 2017 Cadillac CT6 PHEV when it arrives this fall in China and in the United States early next year.
Comments
If China did not have such tough trade standards that we had to partner with Chinese companies and their government in order to sell cars there, I would have no problem with them importing their cars to the US. But we have minimal conditions for them to sell here and when I found out that the “Standard of the World” is building there to ship to here, instead of investing in our workers and resources, it made me decide to drop ALL GM products. I currently drive Mercedes and was going to trade in as well as buy a full size pickup when I retire next year, but Cadillac and Denali came off the table for choices when our Cadillac hybrid was announced to be built in China.
Drop Cadillac and Denali because it is built in China but opt for Mercedes which is German company. Curious???
You completely missed my point. I am for equal trade. No Country puts more restrictions on our products coming in than China. By comparison, we put none on their products, as evidenced by the fact that everything seems to be made in China, even toys with lead paint. They have minimal Enviromental concerns, and they manipulate their currency to discourage outside products. Compare that to Germany, who not only has minimal restrictions on our products, but factories in the US
Completely agree that their trade regulations are restrictive but that is the price to play.
The only reason why every automaker and every major company puts China on it’s todo list is their enormous profit potential despite the trade barriers.
There is talk of China dismantling their trade barriers but that is just talk at this point.
The ship has already sailed on banning all ‘Made in China’ products. There are to many jobs in NA that would be affected.
It isn’t a stretch to imagine that nearly all GMs small and luxury vehicles may very well be built in China by 2025 if current labor cost advantages and reflexively bowing to the “Made in China 2025” plan is paramount.
China aims to be the dominant world economy and “trade” to the Chinese government means they build everything they sell and consume at home and export their goods to other countries without ever needing to be bothered to accept imports. China makes a complete mockery of trade and our government and business leaders gladly let them stick it to us for their own short term gain.
It is time for the “Force China to Clean Up its Massive Environmental Pollution Right Now!” initiative and the “Insist That China Reciprocate Greatly or We’re Going to Close Our Ports to Their Ships and Watch Their Economy Wither Rapidly” initiative, both of which would be a boon not only to reducing global warming but to the sadly nonexistent “Made in USA Again” initiative that should be this country’s foremost priority. Duh.
Once TPP ( Trans-Pacific Partnership ) passes , and for the good of the United States I hope it doesn’t , things like this are only going to get much worse . GM ( aka Global Motors ) doesn’t give a d@mn about the workers that will loose their jobs or the communities that will eventually suffer because of it . There is no such thing as a level playing field when China manipulates their currency to make their workforce undeniably paid less than anyone else which makes it attractive for companies to keep sending jobs to their country .
I fully understand all the retoric out there that shouts the same lame excuse that we live in a global economy now , but China is still a communist country . A country that doesn’t even allow their people access to the World Wide Web . A country that will send their troops out in the streets against their own people . A country that continually hacks into our companies and government computers to gain top secret information .
I love the idea of a PHEV CT6 , but that car will never see the inside of my garage , and I will tell all of my friends the same thing .
I truly believe the only reason we put up with China’s games is because they hold the vast majority of this countries debt . And we don’t want to upset them for fear the dump all of the debt on the world market and the US would be in terrible trouble .
The fact is that GM thinking about sending ” some of ” the battery production to China means it is already a done deal .
Too bad Cadillac/GM won’t “Dare Greatly” to help reduce the trade deficit with China.
CCC
How do you see them ‘Daring Greatly’ to reduce the trade deficit?
If they build the vehicles here for Chinese consumption they will be far more expensive than the competition and sit on dealer lots. How will that change the balance?
I have no problem with GM building their cars for China in China. But if they want to bring cars here without restrictions, the same must be said about bringing our cars to their country. The fact that twice now you do not see this tells me that you do not fully understand all the restrictions a carmaker has to overcome, just to sell a car in China.
I do understand that there are tarriffs on imported products for the Chinese market (approx. 25%) and that there are also regulatory barriers as well.
You point did not specify that in your original post.
So you propose tearing up the trade agreements and instead raise import duties and increase tariffs on imported goods?
Actually, the tariff into China is 35%. Having said that, I am not for closing trade. I am for trade on equal footing including Enviromental impacts. It would be presumptuous to tell them to pay their workers a decent wage, that is more of a social (human equality?) issue which is also important but internal. But pollution affects on a global scale. Furthermore, the aforementioned tariff and monetary rates need to be equitable so that both sides benefit. Tariffs are used for one of two purposes; either to punish or to protect. A proper agreement calls for both sides to agree equally for the free trade principles that democracy stands for. It is clear that China has changed, and I applaud the changes, but it still has a long way to go. Let us encourage agreements that brings economic and social freedom to them that does not lower America’s freedoms and standards. This includes a sustained plan to keep us working as well. By the fact that they are buying our products, no matter where they made, they obviously need us as well.
I don’t have a problem buying a CT6 PHEV regardless of where it comes from. It is a buyer’s market and if you think about it, GM choose to work with China. They would be foolish not too.
It is like a rock and hard place, really.
My problem is the fact that China puts extremely difficult restrictions on us to bring them in or build them on their turf and GM does not hesitate to take the work away from the people who not only made them, but bailed them out during the Bankruptcy. Add to this the fact that the Chinese Government manipulates their currency at America’s expense and the lack of Enviromental concerns; it all adds up to a shady business deal that GM is getting past us. The American Standard of the World? I think not. If hybrids are supposed to promote the environment, why is GM building it in one of the most polluting countries?
GM has nothing to do with Chinese trade regulations/restrictions but simply needs to adhere to them if they want to do business there.
Check your facts Gerald. GM has added factory capacity and jobs since bankruptcy and is very profitable which benefits the thousands of line workers who have no problem cashing their record bonus cheques guaranteed as part of the UAW collective bargaining agreement.
Yes they were bailed out by the government but that wasn’t to help GM execs but the line workers and consequently the Tier 1 and Tier 2 suppliers. Do the math. That is one of the best deal the US (and Canadian ) governments have made since beeds to the Natives.
‘The Chinese government manipulates their currency’..yup very likely..and the US government doesn’t?
‘If hybrids are supposed to promote the environment, why is GM building it in one of the most polluting countries?’
What better place to build and where would they be needed most than the most polluting countries?
BTW…your posts seem a little hypocritical.
The first post is about boycotting Cadillac for Mercedes because they are taking food out of the mouths of the American worker. Seems weird to not support an American company.
Then part of the post above is about how Cadillac forgot it’s past and is neglecting the workers that helped built them but then aren’t you supporting a company with ties in Nazi Germany if my history is correct?
At least the profits for GM from around the world end up back in Detroit which ultimately helps NA workers period.
Wow. You really do not get this. GM also needs to play on an even playing field to bring the Chinese products here. No restrictions for our exports. And I have checked my facts. GM has less workers in the US SINCE the Bankruptcy (as opposed to pre Bankruptcy). This includes the jobs that you alluded to that have been added since the bankruptcy. As far as GM building cars outside the Country, just in Mexico alone, last year, GM outsourced $5 Billion dollars in jobs, and that was with a level playing field treaty. Enviromental: processing lithium batteries is a dirty business that has extreme environmental hazards that are safeguarded in the US and give the Chinese an unfair advantage in manufacturing costs as they create toxic sites. And cut the Nazi crap. Ford made products in Germany for Germany during that time period. I suppose you call that business to survive as well. My Mercedes was made in Alabama, United States of America. That German Company like many others, brought jobs to the US. In order for GM to do business in China, they MUST partner with the Chinese companies and Government. We do not do that to them.