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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:

Cadillac prices the 2020 XT6 crossover from $53,690

Cadillac has announced official pricing for its new XT6 crossover, built in Tennessee. The three-row XT6, Cadillac's first big crossover, starts from $53,690 when it goes on sale later this spring. For that, Cadillac offers the "Premium Luxury" trim level model with front-wheel drive; AWD is optional. Above the Premium Luxury is the XT6 Sport, which comes standard with AWD and starts from $58,090. Both prices include destination charges. The sole engine at this point is the 3.6-liter naturally aspirated V6, which produces 310 horsepower and 271 lb-ft of torque; the transmission is a nine-speed automatic. The Premium Luxury and Sport differ visually, with the former offering more chrome and wood, while the latter has blacked-out trim in place of chrome and carbon trim instead of cabin wood. The wheel design is different between the trim levels, and the Premium Luxury has red taillights while the Sport version has clear tails. The Sport model has continuously adjustable shock absorbers. Both models have seven airbags as standard, as well as an HD rear camera, forward collision alert, automatic emergency braking and front pedestrian braking, front and rear park assist, lane change and blind spot alert, lane keeping assist and lane departure warning and rear cross traffic alert. The lighting is LED front and rear; inside, a heated steering wheel is standard, as is a power folding third-row seat and a remotely folding second-row seat. Seven-passenger seating is standard, and a six-passenger setup is optional with captain's chairs for the second row. There are option packages such as the Enhanced Visibility and Technology Package, which adds an eight-inch gauge cluster display and an HUD, both in color, HD surround vision with recording, and automatic parking assist with braking. The Driver Assist package adds adaptive cruise and enhanced AEB, and one can also specify night vision. The XT6 charges phones wirelessly and is Apple CarPlay and Android Auto compatible as standard. It also has a 4G LTE Wi-Fi hotspot with 3GB or three months' worth of data thrown in, and phones are paired via NFC. Cadillac is taking orders for the XT6 starting in March.

GM seeks national mandate for zero-emissions cars

DETROIT — General Motors says it will ask the federal government for one national gas mileage standard, including a requirement that a percentage of auto companies' sales be zero-emissions vehicles. Mark Reuss, GM's executive vice president of product development, said the company will propose that a certain percentage of nationwide sales be made up of vehicles that run on electricity or hydrogen fuel cells. GM says a nationwide program modeled on such a requirement in California could result in 7 million electric vehicles, or EVs, on U.S. roads by 2030. California wants 15.4 percent of vehicle sales by 2025 to be EVs or other zero emission vehicles. Nine other states, including Maryland, Massachusetts, New Jersey and New York, have adopted those requirements. In January, California Governor Jerry Brown set a target of 5 million zero-emission vehicles in California by 2030. The Trump administration criticizes California's ZEV mandate, saying it requires automakers to spend tens of billions of dollars developing vehicles that most consumers do not want, only to sell them at a loss. Reuss told reporters that governments and industries in Asia and Europe "are working together to enact policies now to hasten the shift to an all-electric future. It's very simple: America has the opportunity to lead in the technologies of the future." A national mandate also would create jobs and reduce fuel consumption, CO2 emissions and "make EVs more affordable," Reuss added. GM, the nation's largest automaker, will spell out the request Friday in written comments on a Trump administration proposal to roll back Obama-era fuel economy and emissions standards, freezing them at 2020 levels instead of gradually making them tougher. Under a regulation finalized by the Environmental Protection Agency at the end of the Obama administration, the fleet of new automobiles would have to get 36 miles per gallon by 2025, 10 mpg higher than the current requirement. But the Trump administration's preferred plan is to freeze the standards starting in 2021. Administration officials say waiving the tougher fuel efficiency requirements would make vehicles more affordable, which would get safer cars into consumer hands more quickly. GM on Thursday said it doesn't support the freeze, but wants flexibility to deal with consumers' shift from cars to less-efficient SUVs and trucks.