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Good news in that I assume that additional jobs will be created...not-so-good news is the facility is LG owned and profits will flow off-shore.
 

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There seems to be some controversy about this because neither GM nor LG has been willing to confirm; however, it appears that at least some of the Bolt EV's battery cells have always been made at the Holland, MI plant.

Regardless, this expansion (plus the new Michigan component facility, which I believe will also be building the motor) represents significant cost savings and an increase in production capacity. Whatever production (components and cells) was occurring in Korea is likely to continue, as GM has stated that they will be expanding global sales of the Bolt EV.
 

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The Mary Barra blog post referenced as the basis for the story: https://www.linkedin.com/pulse/we-b...uture-heres-what-were-doing-today-mary-barra/


  • a production increase of the Chevrolet Bolt EV
  • expanded battery lab
  • two new EV entries in 2018
  • a prototype vehicle capable of a 180-mile range with less than 10 minutes of charging
  • 20 new all-electric vehicles globally by 2023
I wish we'd find out more about the U.S. EV entries. We've heard about the Bolt EV Incomplete, but I'd really like to see another offering or two stateside. I feel like GM should have been doing some better planning for the phase out of the Federal Tax Credit. I know the Bolt EV's success caught them by surprise, but that's not really an excuse.

These would all be welcome entries:
  • 70 kWh Malibu EV (even with 1 C charging, it would be a road tripping beast)
  • 80 kWh Colorado EV
  • Buick Enspire
  • Buick Encore EV (essentially, a plush Bolt EV)
 

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Second on another EV sedan. Not everyone wants a SUV and many EV buyers more likely in that camp.


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Labour is often the most expensive component and those wages stay in the local economy.
...which is a big win for the US economy for sure! That 8 - 15% profit going onto the bottom line of a foreign company, benefiting its stock holders isn't helpful to the US economy. That is my negative observation.

I believe that the lack of planning on the part of GM was intentional planning; planning for the 200,000th sale to coincide with the year end in order to maximize the diminishing tax credit far into the next year, thus aiding in selling EVs at higher margins for the greatest length of time before reaching the necessity of reducing the MSRP to remain competitive. (Maybe I should have broken that sentence into two. 8^)
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Good news in that I assume that additional jobs will be created...not-so-good news is the facility is LG owned and profits will flow off-shore.
Or will more likely get reinvested in the US which is the case in a global economy. That way they don't get taxed double, once in the US and again if they get repatriated. This is why Apple has over 400 billion dollars in offshore accounts because if they repatriate it back to the States it gets taxed at 40%. No body would want to hand over almost 200 billion dollars to the government. Other countries may have a lower repatriation tax but same principal applies.
 

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Second on another EV sedan. Not everyone wants a SUV and many EV buyers more likely in that camp.
That's right, the other half want a pick up truck.
 

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I believe that the lack of planning on the part of GM was intentional planning; planning for the 200,000th sale to coincide with the year end in order to maximize the diminishing tax credit far into the next year, thus aiding in selling EVs at higher margins for the greatest length of time before reaching the necessity of reducing the MSRP to remain competitive. (Maybe I should have broken that sentence into two. 8^).
If they were coming out with new EVs it seems like they could have planned it better because all they have is the Bolt to take advantage of the $7,500 tax credit.

GM will have to build and price their cars competitive to not only these guys but 6 thru 10 too! GMs focus seems to be China.

6-10? Honda, Chrysler, Mitsubishi, Audi, Volo? https://insideevs.com/monthly-plug-in-sales-scorecard/

5. BMW Group – 73,673
4. Toyota – 86,485
3. Ford – 109,634
2. Nissan – 122,950
1. General Motors (GM) – 189,758
via: https://insideevs.com/top-6-automakers-200000-federal-tax-credit-limit/
 

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Or will more likely get reinvested in the US which is the case in a global economy. That way they don't get taxed double, once in the US and again if they get repatriated. This is why Apple has over 400 billion dollars in offshore accounts because if they repatriate it back to the States it gets taxed at 40%. No body would want to hand over almost 200 billion dollars to the government. Other countries may have a lower repatriation tax but same principal applies.
So, is your contention that profits made in a foreign country are never reflected as profit back home in a positive way? There certainly has to be a benefit to a company to manufacture in a foreign country, or else why bother? Or are you saying that there are none? Color me confused on the issue.
 

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So, is your contention that profits made in a foreign country are never reflected as profit back home in a positive way? There certainly has to be a benefit to a company to manufacture in a foreign country, or else why bother? Or are you saying that there are none? Color me confused on the issue.
Not if they can help it. The benefits of manufacturing in another country is to avoid tariffs and make trade deals as well as labour costs, energy costs, transportation costs, expanding your operation world wide to take advantages that wouldn't be available to you if you just operated out of one country, lots of considerations. Britain had a thriving motor vehicle industry but now have only specialty manufacturers, yet they are making more cars there now than they ever have in the past. It's all foreign owned.

In the movie industry the profits made on a movie in that country tend to stay in that country to fund production costs of future movies rather than repatriate them and pay double taxes on them.
 

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Not if they can help it. The benefits of manufacturing in another country is to avoid tariffs and make trade deals as well as labour costs, energy costs, transportation costs, expanding your operation world wide to take advantages that wouldn't be available to you if you just operated out of one country, lots of considerations. Britain had a thriving motor vehicle industry but now have only specialty manufacturers, yet they are making more cars there now than they ever have in the past. It's all foreign owned.

In the movie industry the profits made on a movie in that country tend to stay in that country to fund production costs of future movies rather than repatriate them and pay double taxes on them.
I understand all of what you have written. What I DON"T understand is how it monetarily is beneficial to the stock holders of the parent company. SOMEHOW the stockholders are going to benefit or else why do it? For bragging rights? How the stockholders benefit is what I don't get. Can you help me out? (I feel so dumb 8^(
 

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One (of many) things Tesla has going for them....they are a truly American company (at least at this point in time). There still may be some foreign content (I do not know)....but they are all built in the USA by American workers. The profit from sales overseas should mostly come back home. Please correct me if I am wrong.
 

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One (of many) things Tesla has going for them....they are a truly American company (at least at this point in time). There still may be some foreign content (I do not know)....but they are all built in the USA by American workers. The profit from sales overseas should mostly come back home. Please correct me if I am wrong.
That’s true, but unlike GM (which is American owned too), Tesla does not treat its employees very well.


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Isn't the 'Giga Battery Plant' a partnership with Panasonic?
I believe that I read that that partnership has changed. I can't say how at the moment.
 

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That’s true, but unlike GM (which is American owned too), Tesla does not treat its employees very well.
"pros" and "cons" of union perhaps...

Employees at all the car companies have a choice to work at them or not. They are welcome to go anywhere they want.

and then there were issues because GM managed itself into bankruptcy...

On July 10, 2009, GM reported 88,000 U.S. employees, and announced plans to reduce its U.S. workforce to 68,000 by the end of 2009 after filing for bankruptcy.[61]
https://en.wikipedia.org/wiki/General_Motors_Chapter_11_reorganization
[61] https://money.cnn.com/2009/07/10/news/companies/new_gm/?postversion=2009071016
 

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One (of many) things Tesla has going for them....they are a truly American company (at least at this point in time). There still may be some foreign content (I do not know)....but they are all built in the USA by American workers. The profit from sales overseas should mostly come back home. Please correct me if I am wrong.
None of the profits will come back home. If they bring the profits back home they will have to pay a 40% tax on them. No company is going to do that. Trump wanted to reduce that tax to 15% but hasn't done that yet as he would need approval of Congress to do it. I don't think that's something that can be done by Presidential decree.
 
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