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GM announces battery supplier, development center

01/12/2009, 11:03 AM

By Andrew Ganz

General Motors CEO Rick Wagoner took the stage again this morning at the 2009 North American International Auto Show in Detroit to announce the automaker’s decision to partner with South Korean firm LG Chem to produce battery cells for the upcoming Chevrolet Volt - and potentially the upcoming Cadillac Converj. Wagoner also announced the automaker’s plans to create a large battery development center, likely in Michigan.

GM chose LG Chem over A123, a Boston-based battery supplier, though the automaker says it will continue to work with A123 in the future.

Wagoner said that the automaker will add more battery engineers when it opens a 31,000 square foot battery development center in the United States. The center, which will be the largest in the U.S., is planned for Michigan, though a final decision on location has not been chosen.

The automaker will also partner with the University of Michigan to create an advanced battery lab and an engineering department curriculum designed to feed directly into the burgeoning battery-electric industry. The battery lab will be located in U of M’s Ann Arbor campus.

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01/12, 11:27 AM

posted by:

Borat

Here are our taxes at work: South Korean company gets the work and Boston company doesn’t. Or well, so much for corporate patriotism. How do you explain that one, Need More Tax Bucks for GM?

Another thought: if Chevy Volt to run about 40K for your average American household, what would be sticker for corresponding Cadillac? And what would be the difference? More batteries?

01/12, 11:37 AM

posted by:

Bankruptcy2009

I’ll give GM credit they are trying to produce an Electric car, but Borat They have to go with a Supplier that they feel is more competitve ok. I applaud GM for at least trying to do the right thing. Putting my GM bashing aside for just a moment. and I mean just a moment. and only for a moment!
I also applaud GM for at least telling A123 that they will work with them again in the future so they’re not giving up on an AMerican company but feel they just don’t have the best at the moment. And that is what the Public wants is the Best. So give GM where credit is due. Just because they don’t go with an American company for the battery does’nt mean they’re totally unamerican. They realize the Public won’t settle for second banana. So to you GM fan boys that say I bash GM indiscriminately I say this. I don’t I tell it like it is. 95.5 % of GM is a Cow Pattie not waiting to happen it has already happened. Its the work on your electric vehicle program that GM so hope of redeeming itself.

01/12, 11:42 AM

posted by:

05Z88Path

What kind of name is “A123″ anyway? If their name is any indication of their creativity maybe it’s a good thing GM didn’t go with them….

01/12, 11:51 AM

posted by:

Borat

OK, do you know what LG stands for? Lucky Gold, I kid you not. I guess it is golden proof of credibility.

01/12, 1:23 PM

posted by:

bcjohnso99

Borat,

LG stands for Lucky Goldstar.

So tell me how patriotic it would be to buy the nearest competitor to the Volt, the Toyota Prius, considering it’s domestic content is near ZERO.

At least GM is working with a domestic university to help get the US up to speed with the times.

01/12, 1:39 PM

posted by:

PW

Not that anyone in Ann Arbor will care. That city is Michigan’s import heaven.

On another note, GM does not have the right to use patriotism to sell its products if it’s not going to partner with an American battery supply company. Well, they shouldn’t have the right to use patriotism to sell their products in the first place, but this tidbit just makes them hypocritical about it. I’m sure even the GM fanboys are getting all antsy about this, since they tend to be the most import-hating group out there, much like the company they’re a fan of.

01/12, 1:57 PM

posted by:

yarddog82abn

I have to take “Borat” side on this one. GM got the loan that is coming out of our tax’s, they should at least make sure every buck stays in the U.S. Even if the battery’s are produce in the U.S. the last buck goes to South Korea…

01/12, 2:35 PM

posted by:

Dangerous1

The Volt is a pipe dream General Motors had way before the financial crisis. They have already invested too much tine, manpower and dollars to abandon the project. The Volt makes great headlines, but it will never sell. It’s overpriced, and it suffers from the General Motors “design-by-committee” syndrome.

GM needs to design and build cars that people will want to buy if they want to get back to profitability. The Volt is an attention grabber which will bleed more of their scarce resources out the door.

01/12, 5:05 PM

posted by:

Lionwithoutpride

Dangerous1-

Your post reminds me of what people were writing about the Prius not too long ago. I agree with you that the pricing on the Volt is a killer (unless we see the return of $4 gas or a huge new gas tax and even then it is still questionable). Perhaps the Volt will serve the same function as a Corvette. The Corvette brings gearheads into the showrooms and then they look at the cheaper and more mundane performance cars. The Volt may bring in the curious eco-drivers who will, hopefully, look at the cheaper and less, but not totally deficient, energy saving vehicles GM offers. Look, I’m an optimist. This is just how I think . . .

To those concerned about the batteries. GM has to put the best batteries available now in the car, but look at what they are doing? As bankruptcy2009 noted, GM is willing to work with A123 in the future AND they are building a future by investing in battery research. LG may be the battery of choice now, but there is a good chance that GM’s efforts will lead to greater success in American battery manufacturing. Also, if you look at the writings of our founders, like Hamilton, they fully expected that tariffs would be placed on imports to fund the nascent local industries. Translation for today? It is utterly constitutional to use tariffs on import batteries (those on the Volt, the Prius, etc.) to fund companies like A123, or to at least make their products cheaper.

01/12, 10:43 PM

posted by:

darx_ider

Is this car ever gonna be built? It has been over 5 years since I first heard about it go to production !! I think it is just a fake phenomenon.

01/13, 9:33 AM

posted by:

bradleygt

wow darx….first i heard of it was about 2.5 years ago, and I was working for chevy from 04-08….you must have some great insider info…care to share how YOU alone knew of this 5 years ago?

 
 
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