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GM's redesigned full-size 2021 SUVs face delay over coronavirus

As General Motors works to conserve cash for the coronavirus pandemic, the automaker reportedly told suppliers that it is postponing development of several future vehicles. The situation may cause GM to delay the launch of the 2021 Cadillac Escalade, GMC Yukon, Chevrolet Tahoe and Chevrolet Suburban SUVs, which had been planned to roll out in April. The original launch plan for the redesigned full-size SUVs, which are some of the most profitable vehicles produced by GM, had called for production of the current models to end at its plant in Arlington, Texas, this week. After a retooling process, the redesigned SUVs were slated to begin production late in the month of April. In an email to suppliers viewed by Reuters and confirmed as authentic by GM, the automaker also said it was suspending development work on six future vehicle programs, including updates of the Chevrolet Equinox, GMC Terrain, Cadillac XT4, Bolt EV, Chevrolet Silverado and GMC Sierra. GM said preproduction work on those programs would be pushed back to calendar year 2021, with most of the updated vehicles scheduled to be launched as 2022 models. According to the Detroit News, work has also been paused on the Chevy Camaro and a future version of the Corvette that has yet to be unveiled and wasn't planned for production during the 2020 calendar year. Last week, the automaker told employees and suppliers it was delaying work on some future vehicles while pushing ahead with near-term models such as its redesigned full-size SUVs and the GMC Hummer EV, Cadillac Lyriq, Chevrolet Bolt EUV and Cruise Origin, as well as its new Ultium battery system. A GM spokesman who spoke with Reuters reiterated on Monday what the automaker had said last week — that the situation with its U.S. plants was "fluid" and that the automaker would "continue to evaluate" whether and when to reopen those plants on a week-by-week basis, with "employee safety" guiding that decision. GM said previously that it was closing most of its U.S. plants indefinitely. In its Monday email, GM asked suppliers to stop work on all pre-production tooling and pre-production parts manufacturing, but also not to dispose of any tooling or materials. GM told Reuters it had solicited volunteers from its workforce to finish the build-out of the current SUVs on a single shift in Arlington.

The real costs of keeping a Chevy Volt on the road

The release of the new, 2016 Chevy Volt is sure to bring a surge of used electric vehicles to the market as early adopters trade their older models in. Many of these cars are selling for a fraction of their original price, thanks in part to federal and state incentives that lowered the initial cost to the first owner, which opens these cars up to a whole new class of consumers. While the prices are getting attractive, potential buyers are still hesitant to buy a used EV due to uncertainty about service and repair costs, but there may be some good news on the horizon. The Chevy Volt comes with a battery warranty that is good for at least 8 years and 100,000 miles, but many of the Volts popping up on the market have passed that 100,000-mile mark. The threat of needing a new battery can be a deterrent, especially with some dealers quoting prices as high as $34,000 for a full "drive motor battery replacement." That sum is more than the MSRP of a 2016 model. Some of the fear of EV maintenance and repair comes from the mystery of the individual pieces that make up the drivetrain and charging system. If we take a look at the Volt in terms of analogs to a traditional internal-combustion vehicle, the outlook becomes a little more friendly. The Volt battery pack consists of three lithium-ion modules in a T-shaped arrangement, each of which can be serviced individually. Module 1 is made up of 90 cells and corresponds to GM part number 22954462, which retails for $3,258.33; module 2 is made up of 72 cells and corresponds to GM part number 22954463, which retails for $2,930.00; lastly, module 3 is made up of 125 cells and corresponds to GM part number 22954464, and retails for $4,933.33. These part numbers have been added to the dealer order systems but have not shown up in the distribution centers at this time. Although all three of the modules add up to a fairly large $11,121.66 total and are still on hold for dealer ordering, the good news is that in most cases these battery cell modules do not need to be replaced. There are many other individual pieces mounted on the battery pack that are serviceable, such as the Battery Energy Control Modules (BECM) and the Battery Interface Control Modules (BICM). These modules control and monitor the battery packs and charging system and have been known to fail while the lithium-ion battery cells are not at fault. Some have been replaced under warranty, but if you are stuck buying one they run about $255 a piece for the part.

Chevy 'committed to marketing Bolt the right way'

The 2015 edition of the annual AltCar Expo in Santa Monica, CA in September was a relatively quiet affair. Attendance felt light compared to previous years. But that didn't mean there wasn't something happening that might have just as big an impact on the plug-in scene as anything that's ever happened in previous years at the Santa Monica Convention Center. I say this because of what GM's Shad Balch told me about Chevy's plans to market the upcoming Bolt electric car. This is GM's next-gen electric vehicle, which will have a roughly 200-mile range and may cost about $30,000 after tax incentives (maybe). To say he's excited to start selling this car is an understatement. Set aside the obvious challenge Chevy will have with cars named both the Volt and the Bolt, especially when some languages exchange the pronunciation of the letters B and V. Set aside the fact that, for now, Balch is dealing with his own company actively advertising against the product he's trying to get people excited about. Balch, GM's manager of new product and public policy communications, is tremendously positive about the Bolt's chances in the marketplace when it arrives in 2017 or 2018. "Driving an EV is, in every proof point, better than a gas-powered car, except for charging." - Shad Balch AltCar and the concurrent National Drive Electric Week represented the Bolt's West Coast debut, and Balch told me that the car's arrival in California shows how "Detroit recognized that they need to send it out to their number one market." The car's appearance outside of the Motor City was "The most encouraging part for us out here, being in the market ... to be able to explain that we are committed to marketing this car the right way. ... We're trying to make that known as much as possible, because that is the number one criticism that we hear. That's why events like these are so important, because we can't wrap up into a 30-second spot what these cars are capable of. I can't even explain it to you in 10 minutes what it's like. But the thing is, driving an EV is, in every proof point, better than a gas-powered car, except for charging." Now, there's a fairly decent chance that GM will hit the 250,000-vehicle limit for the $7,500 federal tax incentive right about when the Bolt comes to market, so I had to ask how the Bolt gets marketed if the price tag jumps up a few thousand dollars. Balch was straightforward. "Well, we would sell fewer cars," he said. "It's pure and simple. ...