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GM investing $2 billion in Tennessee plant to build Cadillac Lyriq, other EVs

DETROIT — General Motors said on Tuesday it will invest $2 billion to convert its Spring Hill, Tennessee, factory to produce electric vehicles, starting with the new Cadillac Lyriq, alongside existing combustion-engine Cadillacs. Spring Hill will be GM's third U.S. electric vehicle factory, along with existing plants in Detroit and Orion Township, Michigan. The Tennessee plant was built in 1990 as the exclusive source for GM's now-defunct Saturn brand. The Cadillac Lyriq crossover is slated to go into production in Spring Hill in late 2022, according to AutoForecast Solutions (AFS), which tracks industry production plans. AFS said it expects some electric vehicle production will be announced at a later date for a factory in Mexico. Among additional investments, GM on Tuesday said it will spend $32 million at its truck plant in Flint, Michigan, to increase production of the Chevrolet Silverado and GMC Sierra heavy-duty pickups. GM will spend $100 million to shift production of the redesigned GMC Acadia crossover from Spring Hill to a plant near Lansing, Michigan. Spring Hill will continue to build the gas-engine Cadillac XT5 and XT6 crossovers. The plant also will build other future electric vehicles in addition to the Lyriq. The automaker's plans for investing in U.S. factories comes with two weeks left in the U.S. presidential election campaign. President Donald Trump and Democratic rival Joe Biden are competing for support from auto workers in Midwestern swing states. GM Chief Executive Mary Barra has outlined plans to invest $20 billion by 2025 in new electric vehicles and battery technology. The automaker is spending $2.2 billion to overhaul and retool its Detroit-Hamtramck factory to build a GMC Hummer EV electric pickup truck in late 2021, followed by an automated robotaxi and other electric vehicles. GM builds its electric Chevrolet Bolt at a large assembly plant north of Detroit.

It's going to cost $12 billion to fix Cadillac

The Cadillac CT6's development predates Johan de Nysschen taking over at Cadillac, but the forthcoming flagship is the luxury brand's first major new product launch since the beginning of his tenure. The vehicle's debut also marks the beginning of a comprehensive $12 billion renewal plan bringing eight new vehicles in the next five years. Now, the former Audi and Infiniti exec is talking about joining Caddy and the company's future. "Cadillac will be a powerhouse global luxury brand that will command the respect of its peers," de Nysschen said about the forecast state of the company in 2020 to Bloomberg. He disclosed that three of those new vehicles under the five-year plan would be crossovers and reiterated that plug-in hybrids are on the way that would take advantage of the Chevrolet Volt's tech advances. De Nysschen also reminisced about joining Cadillac last year. He told Bloomberg that leaving Infiniti wasn't an easy decision, and there were apparently long conversations on the phone with General Motors President Dan Ammann discussing strategy for the luxury brand. De Nysschen was apparently clear that a greater investment and more autonomy from the corporate mother ship were vital. These days, the revitalization of Cadillac is just getting rolling. The company has a swanky New York office with a dedicated team to focus on the future. According to de Nysschen, the brand will grow its staff to around 150 people by the end of the year, compared to over 40 now. The marketing plan is to position the American luxury brand as a more distinctive product versus more common German rivals. It's going to be very interesting to see if this new Caddy can dare greatly enough to accomplish these lofty goals.

Weekly Recap: Cadillac's crossover blitz hinges on the 2017 XT5

Cadillac's aggressive new cadence of crossovers begins next spring with the arrival of the 2017 XT5, the first of four new utility vehicles that Cadillac will unleash in a bid to win more customers and revitalize its image. The XT5 replaces the aging SRX, and it's the first SUV to use the brand's new naming scheme (cars will use the corresponding CT prefix). Billed as the cornerstone of Cadillac's remade crossover lineup, the XT5 will join showrooms right after Caddy's new flagship, the CT6 sedan. It will be on display next week at the Los Angeles auto show after first appearing this month at the Dubai motor show. "It's pivotal to our ongoing growth, which is why we've developed XT5 from the inside out to provide customers more space, more technology, more luxury, and more efficiency," Cadillac president Johan de Nysschen said in a statement. "Pivotal" is almost understating the XT5 and the red-hot midsize crossover segment. The SRX is Cadillac's top seller in 2015, posting a 25-percent increase and its 56,732 units (up 25 percent) are more than one third of the brand's 141,090 sales this year. Yes, the totals have been partially incentive-fueled, and Cadillac put an average of $7,225 on the SRX's hood in October, according to TrueCar data. Still, it's an impressive performance for any vehicle, especially one that's had few major changes since the new generation launched as a 2010 model. "The SRX has been selling very well, given how late in the lifecycle it is," AutoPacific product analysis manager Dave Sullivan told Autoblog. It outsold the all-new MKX last month and really only trails the Lexus RX. This is the volume model for Cadillac and dealers need this to be a grand slam, not just a home run." Cadillac is adamant the XT5 isn't an SRX re-skin. It has a new chassis, more interior room, and adds features like Apple CarPlay and Android Auto. Thanks to a new structure, the XT5 sheds 278 pounds compared with its predecessor, which should improve fuel economy and driving character. The crossover uses General Motors' latest 3.6-liter V6 rated at 310 horsepower and 270 pound-feet of torque, and it is fortified with variable-valve timing, cylinder-deactivation, and stop-start features. The V6 will team with an eight-speed automatic transmission and a twin-clutch all-wheel-drive system than can summon all of the torque distribution to the front or rear axles. Cadillac will also sell a 2.0-liter turbo four-cylinder model in China.