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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:

GM CEO Akerson calls out Tesla, says Cadillac will compete on EVs

Cadillac will be taking on Tesla Motors, the underdog EV manufacturer that's seen heaps of critical acclaim and stock market buzz with its most recent sedan, the Model S. "If you want to compete head-to-head with Tesla, and we ultimately will, you want to do it with a Cadillac," Dan Akerson, the chairman and CEO of General Motors, told media in Washington, according to The Detroit News.
Akerson continued, telling The News, "We'll sell more Volts and lose less money on the Volts than they'll lose on the Model S." He also took time to point out that Tesla getting vehicles out to customers isn't a guarantee of success or permanence, using Fisker as an example, saying "Does anybody even remember Fisker? I mean, there were a number of them; they are all gone."
This strong talk from Akerson comes after Doug Parks, another GM exec, let slip that the Detroit-based manufacturer has an EV in the works that will cover 200 miles per charge and only cost about $30,000, a massive upgrade over similarly priced EVs that struggle to top 100 miles per charge. Until that vehicle arrives, though, GM is preparing the Cadillac ELR, a small coupe that, like the Volt with which it shares technology, uses a gas engine as a mobile generator to recharge the batteries. Akerson took aim at Tesla again, saying, "But I do think when the ELR comes out late this year, early next - it's certainly the same postal code as Tesla, but now we're going to move up. It's not going to be a mass-produced car."

Cadillac sales chief Peffer resigns amidst slow sales

Cadillac continues to hemorrhage executives, as it's just seen its fourth high-level departure in the past year. Vice President of Global Strategic Development Don Butler (who defected to Ford) and European President and Managing Director Susan Docherty both left the company of their own volition, while Chase Hawkins, Cadillac's vice president of sales and service, was fired following a "violation of policy" in July of 2013. Strangely, it's Hawkins' replacement, Bill Peffer (shown above), who has handed in his papers this time around.
"Bill left to pursue other interests. Kurt McNeil replaces him, effective immediately," spokesman David Caldwell told Autoblog via email.
McNeil last held the VP of sales and service position back in 2012. He's currently the vice president of US sales for all of General Motors. According to The Detroit News, McNeil will take on the post in what is likely an interim capacity.