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Cadillac will build a Tesla fighter, sources say, as GM's leading EV brand

WASHINGTON — Cadillac is expected to become General Motors' lead electric vehicle brand as the largest U.S. automaker gears up to introduce a new model under that luxury marquee to challenge Tesla, two people briefed on the matter said Thursday. GM is set to announce Friday as part of an investor update that a Cadillac will be the first vehicle based on its forthcoming "BEV3" platform, the people said. The vehicle platform is the basis for vehicle underpinnings, including the battery system and other structural and mechanical parts. GM is not expected to disclose on Friday additional details, including precisely when the Cadillac EV will be built, whether it will be a crossover or sedan, or where it will be assembled, the sources said. A GM spokesman declined to comment. GM had previously focused on making electric vehicles under its mass market Chevrolet brand, including its plug-in Chevrolet Volt and battery electric Bolt. GM announced last year it was ending production of the plug-in Volt as well as a low-selling plug-in Cadillac CT6, even as it moved to boost EV spending. GM said in November as part of its restructuring efforts it was doubling resources for electric and autonomous vehicle programs over the next two years. Last month, two Ohio senators asked GM to commit to building all future electric vehicles for U.S. buyers within the country. GM said in 2017 it planned by 2021 to introduce a new dedicated flexible electric vehicle architecture and an advanced battery system to support the development of at least 20 new models in the United States and China. GM said in 2017 that a new electric vehicle platform in 2021 will serve as a base for at least nine derivatives, ranging from a compact crossover to a large seven-passenger luxury sports utility vehicle and a large commercial van. Johan de Nysschen, who was then Cadillac's president, told Reuters at the Detroit Auto Show in January 2018 the luxury brand will play a "central role" in GM's electrification strategy, including China. He added that Cadillac would be "at the forefront" of rolling out new electric vehicles in the United States and China. He left GM in April. This week, GM said Cadillac sales in China rose 17.2 percent in 2018, surpassing 200,000 units for the first time. GM Chief Executive Mary Barra has said that GM aims to sell 1 million electric vehicles a year by 2026, many of them in China, which has set strict production quotas on such vehicles.

Infiniti Q50 Red Sport 400 priced at $48,855, AWD at $50,855

Infiniti's most powerful production model, the new Q50 Red Sport 400, now has a starting price. You'll need at least $48,855 for the rear-drive model or $50,855 for all-wheel drive. (Both figures include the $905 destination charge.) A fully loaded, rear-drive Q50 RS400 with Direct Adaptive Steering, navigation, adaptive cruise control, a heated steering wheel, and Infiniti's entire alphabet soup of safety equipment, tops out at $57,045. (Again, add $2,000 for AWD). When it comes to rear-drive competition, the closest base price to the Q50 is the 320-hp BMW 340i. This German undercuts the Infiniti by two grand, $46,795 to $48,855. But the BMW outprices the Q50 as soon as you start selecting options. A 340i with similar equipment to a loaded Q50 Red Sport 400 costs just under $60,000. All-wheel-drive German competitors also lose out in the price war. Like with the rear-drive models, the BMW 340i xDrive undercuts the Q50 RS400 by around $2,000. Add the options, and the Infiniti becomes a better value. The other two big German rivals, the Audi S4 and Mercedes-Benz C450 AMG start at a higher price and only get more expensive. Technically the S4 starts cheaper than the Q50, but only with the standard manual transmission. Selecting the S-Tronic dual-clutch model kicks the price from $50,125 to $51,125, and going for the top-end Prestige trim will bump potential Audi owners up to $57,025. Throw on must-have S4 options, including adaptive cruise control, adaptive dampers, and a sport differential and you'll be shell out $64,425 for the Audi. The Mercedes-Benz C450 AMG is the priciest choice in this group, starting at $51,725, or roughly $900 more than a base Q50 RS400 with AWD. Options, again, are the downfall here. Building a C450 to match a loaded Infiniti will drive the Mercedes' price up to $64,315. While it occupies something of a weird space relative to these vehicles, it's also worth mentioning the Cadillac CTS VSport. It's the only car in this impromptu pricing comparo that can outgun the Q50, with its 3.6-liter, twin-turbo V6 good for 420 hp and 430 lb-ft of torque. It also starts at $60,950, although that includes plenty of standard equipment. All this means that the Q50 Red Sport 400 represents a relative value. It packs more power than the Germans – 80 more than the 340i, 67 more than the S4, and 38 more than the C450 – and a more comprehensive list of options, too.

GM announces net 220 job increase as Trump visits Michigan

GM announced today that about 900 jobs would be added (or, importantly, retained) ahead of President Trump's arrival in Michigan, where he is expected to discuss his plan to roll back fuel economy standards. The timing of the announcement is almost certainly not coincidental, as appending it to a Trump visit gives it a higher profile and dovetails with the President's jobs agenda. It's less likely the decision itself was made for those reasons, but the free PR boost is a nice bonus. As for those 900 jobs themselves, they aren't all new jobs. The only net gain is approximately 220 jobs at the Romulus Powertrain Plant, which produces the 10-speed automatic transmission that's proliferating through the company's lineup. The 180 jobs at Flint Assembly and 500 jobs at Lansing Delta Township are retained jobs – that is to say, spots the company found for workers who would otherwise have been laid off. By the way, the Flint jobs will help with production of heavy-duty pickups, and the Lansing jobs are to produce the Chevrolet Traverse and Buick Enclave. Finding jobs for manufacturing workers in the auto sector, whether new or retained, is admirable. No matter how GM couches it, the company has created or retained a total of 7,000 jobs this year, and its total reinvestment in US production is around $1 billion. But these decisions are business ones, not political ones – timing the announcements to make them seem inspired by economic policy, or the political situation, is simply smart PR. Related Video: Image Credit: Bill Pugliano/Getty Images Celebrities Government/Legal Buick Cadillac Chevrolet GMC