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GM to announce second U.S. battery plant, in Tennessee, with LG Chem, sources say

General Motors and South Korean joint-venture partner LG Chem will announce a second U.S. battery cell manufacturing plant on Friday, revealing plans for a $2.3 billion factory in Spring Hill, Tennessee, three people familiar with the matter said. The plant will use a different, more cost-effective battery chemistry than the one the companies will offer from the joint-venture plant they are building in Lordstown, Ohio, the sources said on Wednesday. The battery will be for the Cadillac Lyriq electric crossover vehicle that GM will begin building at its nearby Spring Hill assembly plant next year, the sources said. The timing of the Tennessee battery plant's opening is unclear, but there will be a period when the battery is supplied for the Lyriq by another LG facility until the Tennessee plant opens and it will not come from Lordstown, one of the sources said. GM would not confirm the details and declined further comment, and a spokesman for LG did not have an immediate comment. A Tennessee economic development spokeswoman also declined to comment. The No. 1 U.S. automaker previously said it was exploring the feasibility of another U.S. battery cell plant with LG's battery unit, LG Energy Solution, via its Ultium Cells LLC joint venture. Sources previously told Reuters that GM and LG Chem were in advanced talks with Tennessee officials, and that the plant there would be similar in scope to the $2.3 billion Lordstown plant. GM said in October it would invest $2 billion in Spring Hill to build EVs. The Detroit automaker said last year it was investing $27 billion in electric and autonomous vehicles over the next five years. Sources previously said GM would need more battery plants beyond the Tennessee one to meet aggressive EV targets. GM has set a target in January of halting sales of light-duty gasoline and diesel-powered vehicles by 2035. LG Energy said last month it planned to invest more than $4.5 billion in U.S. battery production over the next four years, including plans to build at least two new plants. LG had been embroiled in a high-profile dispute with rival South Korean firm SK Innovation in the United States after LG alleged SK stole trade secrets, but the companies settled that and other disputes with SK agreeing to pay $1.8 billion to LG. (Reporting by David Shepardson in Washington and Ben Klayman in Detroit; Editing by Matthew Lewis) Related Video:

Mystery Cadillac Escalade prototype spied testing on public roads

This mystery Cadillac Escalade prototype could be a rumored V model featuring a supercharged LT4 V8. This prototype, sporting a fancy exhaust and other unique elements under fairly elaborate camouflage, was spied testing on public roads in Michigan.  Since it's still quite comprehensively disguised, we can't say much for certain about what this prototype has going on underneath. We can see a new set of wheels, a quad-tip exhaust and what appears to be a redesigned lower front bumper, but our spies didn't indicate anything else definitive — not even the telltale whine of a supercharger. That seems a glaring omission, given that a V model would almost certainly be powered by the same supercharged V8 found in the CT5-V Blackwing, where it is expected to develop well north of 650 horsepower.  Cadillac chief engineer Tony Roma has previously suggested that more V-badged cars are in the pipeline without confirming which ones or when to expect them. An unverified report published in February 2021 claims the Escalade's 6.2-liter V8 will soon receive a 200-horsepower bump thanks to a factory-backed, dealer-installed supercharger; a full-fledged V model would take that formula a step further. If you're not familiar with Cadillac's latest performance offerings, "V" models are now the mid-range performance variants, similar to Audi's "S" cars in that they offer a bump in power and handling but stop short of being full-blown track monsters. That treatment is reserved for the new "Blackwing" nameplate, which was derived from the twin-turbocharged V8 of that same name that was originally slated to power those range-topping models.  Related video:

Why Cadillac is willing to lose 43 percent of its dealers

Cadillac is offering about 400 dealers in the United States a lump sum of money to close down. That represents over 40 percent of Cadillac dealers in America. Offers start at $100,000 and top out at $180,000. The average offering is around $120,000. According to Automotive News, Cadillac chief Johan De Nysschen estimates it will cost the automaker around $50 million to close these dealers. Any dealer that chooses to remain open will have to submit to Cadillac's ambitious Project Pinnacle, which will divide dealers into incentive categories based on how many units they sell. "Every single Cadillac dealer will have the potential to earn significantly higher profits than they do today," says De Nysschen. Dealers have until November 21 to decide if they want to take the cash or submit to Project Pinnacle. A logical question: Why is Cadillac willing to spend $50 million to close down 43 percent of its dealers? First, GM's luxury brand has way more dealerships than it needs. Second, the 400 dealers with offers to shutter each sold 50 or fewer vehicles in 2015, representing just 9 percent of its sales volume in America. So, while closing these smaller dealerships may have a small initial impact on sales, it's not going to be a major hit to Cadillac. Related Video: News Source: Automotive News - sub. req.Image Credit: Gary Cameron / Reuters Cadillac Car Dealers Luxury Performance