factory zero tour

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In boost to electric vehicles, Biden tours GM plant in Detroit

Fresh from signing a $1.2 trillion infrastructure bill that provides substantial funds for a nationwide electric vehicle charging network, President Joe Biden was in Detroit on Wednesday to visit Factory Zero, the centerpiece of General Motors' shift to all-electric vehicles.

The assembly plant, which underwent a $2 billion conversion, will produce a variety of battery-electric vehicles, starting with the 2022 GMC Hummer EV. All told, GM plans to roll out at least 30 battery-electric vehicles by mid-decade and has laid out a plan in which it would shift entirely to battery power for its retail product line by 2035. But it is by no means alone. 

A newly released study forecasts that the global auto industry will invest at least $500 billion in its push to electrify by the end of the decade. The transition is accelerating rapidly. Whereas the 2021 model year ended with just over a dozen long-range battery-electric vehicles available for U.S. motorists, industry analysts expect that to grow to more than 50 by the end of next year.

Meanwhile, at the Los Angeles Auto Show, which opened Wednesday, all of the new models making their debuts this year are battery powered, including Subaru’s Solterra, concept vehicles from Hyundai and Kia and the first long-range battery-electric vehicle from Toyota, the bZ4X.

The coming year could be “critical” as the industry boosts electric vehicle spending and rushes new models to market, said Sam Abuelsamid, the principal auto analyst for Guidehouse Insight. At the end of last year, battery-electric vehicles made up barely 1 percent of the U.S. new vehicle market, and manufacturers lost money on every all-electric vehicle they built. But demand more than doubled during the first half of this year, and it has continued to gain momentum. 

Meanwhile, Tesla is operating in the black, and GM CEO Mary Barra is so confident about her company’s direction that she expects to push margins to over 10 percent by the end of the decade.

The rollout of new products is critical, industry observers say. While early battery-electric vehicles were largely concentrated in the small sedan and hatchback segment, new offerings are falling more in line with trends in the broader industry, with products like the Ford Mustang Mach-E and GM's new Hummer.

In addition, several vehicles — including the Tesla Model S and the new Lucid Air — can get 400 to 520 miles per charge, according to estimates from the Environmental Protection Agency.

But charging is a critical issue, one that Biden targeted as part of his infrastructure plan. All told, the plan includes over $280 billion for transportation-related projects. That includes $15 billion specifically to promote electrification — which includes the creation of a nationwide network of electric vehicle charging stations. Various states, including California, New York and Michigan, are setting up efforts of their own. And several of the largest private charging companies, such as ChargePoint, have gone public this year, raising billions of dollars.

Biden's infrastructure plan includes over $280 billion for transportation-related projects.

It helps to have the automotive media singing the praises of electrification. The influential Motor Trend magazine this week named the new Lucid Air its car of the year. On Wednesday, the Lucid sedan was named one of three finalists for North American Car of the Year. The Hyundai Ioniq 5 was among three SUV finalists, and the all-new R1T from startup Rivian was one of the finalists in the truck category.

However, some battery-electric vehicles scored poorly in the latest Consumer Reports Annual Automotive Reliability study, largely because of issues with Tesla products. The Model Y was one of the most problem-plagued vehicles in the study. On the other hand, the Kia Niro EV was the second best of all vehicles, according to owners, and the Ford Mustang Mach-E was another standout, said Jake Fisher, CR’s director of automotive testing.

Whereas Biden is looking for the carrot to encourage electric vehicle buyers, a number of state governments are turning to the stick. California, New York and Washington are all setting in motion plans to phase out internal combustion engines entirely — and not all automakers are pleased with the prospect. Toyota believes electric vehicles aren’t for everyone, the company's U.S. marketing chief, Mike Tripp, said this week at the Los Angeles Auto Show. The Japanese giant contends that the best approach to carbon neutrality is with a mix of battery-electric vehicles, conventional and plug-in hybrids and hydrogen fuel-cell vehicles. 

All told, the industry will spend about $515 billion to bring battery-electric vehicles to market by 2030, according to a new Reuters study. That’s nearly double what an AlixPartners report estimated less than a year ago.

It all depends, of course, on customer acceptance. But all signs suggest that buyers are rapidly plugging in.

Paul A. Eisenstein is an NBC News contributor who covers the auto industry.

GM's big preparation for President Biden's visit to Factory ZERO

General Motors is opening the doors of Factory ZERO assembly plant Wednesday to a headliner: the president of the United States.

President Joe Biden, 78, will get an afternoon tour of the retooled factory where GM will build all-electric vehicles.

Biden's visit comes on the heels of his signing into law a $1.2-trillion infrastructure bill he helped write. He is expected to outline how the legislation will help spur adoption of electric vehicles. GM has said its entire light-vehicle lineup will be electric by 2035.

Biden is also likely to talk up another piece of legislation, his Build Back Better plan, a massive social spending bill which, if passed by Congress in its current form, includes additional Medicare benefits and universal free pre-kindergarten, expanded incentives to encourage consumers to buy electric vehicles as well as tax credits for manufacturers building or converting plants to support EV adoption.

The final scope of that plan is still in question. But the infrastructure bill passed earlier this month by the U.S. House and signed into law by Biden on Monday includes $7.5 billion to begin installing 500,000 EV charging stations across the U.S., and upward of $10 billion for Michigan to fix roads and bridges, improve public transit, expand broadband Internet and more .

It also includes some other items that could change the products coming out of Detroit's automakers, with provisions that could eventually require technology that would passively detect if a driver is impaired and keep him or her from driving. These provisions could also see all new passenger vehicles fitted with collision detection and avoidance equipment.

GM spent $2.2 billion over the past 18 months to retool Factory ZERO in Detroit and Hamtramck and on Tuesday afternoon, teams of GM employees were working frantically to prep for the president, awaiting word from the White House on his agenda.

"He'll walk the line and see what the workers are doing," said a person familiar with the plans. The person asked to not be named because they are not authorized to share that information with the media.

Biden is also expected to drive one of the first production 2022 GMC Hummer EV pickups to roll off the Factory ZERO line, the person said.

Biden is a car enthusiast who in August 2020 ran a campaign ad that featured his 1967 Corvette. In it, he told the country that GM is making an all-electric version of its iconic sports car that will go 200 mph. GM did not comment.

More: The love story behind Joe Biden's 1967 Corvette and its price tag today

In May, Biden, whose father sold Ford cars, toured Ford Motor Co.'s new plant in the Rouge complex designed to build the all-electric F-150 Lightning. At that event, Biden decided to take the truck for a spin around the test track .

Then, in August, the president did an impromptu drive of an electric Jeep Wrangler Rubicon 4xe that was parked on the White House South Lawn.

Biden also visited a union training facility in Howell in October looking to boost support for his Build Back Better and infrastructure plans.

Ahead of Biden's visit, GM CEO Mary Barra will ring the New York Stock Exchange Opening Bell from the factory floor at 9:28 a.m. ET. People can watch it live at nyse.com/bell .

It's the first time Barra has rung the NYSE bell, said Jeannine Ginivan, GM spokeswoman. 

Factory ZERO, previously called Detroit-Hamtramck Assembly, was not supposed to exist. In late 2018, GM said it would permanently idle the factory, along with Lordstown Assembly plant in Ohio, Oshawa Assembly in Ontario and two transmission plants, in a cost-saving effort. 

But during 2019 contract negotiations with the UAW, amid a nationwide strike, GM agreed to retool Detroit-Hamtramck to build all EVs.

On Feb. 27, 2020, the  last Chevrolet Impala sedan  rolled off the assembly line and GM has designed a plant that it says will be one of the most advanced in the world, full of firsts such as running on 5G wireless technology, which allows robots, machines and computers to talk more smoothly with each other.

Last month, GM started building pre-production Hummer EVs . GM has 10,000 preorders for the Edition 1, which starts at $112,595. Those will be delivered to customers by year-end, Barra has said.

Next up, GM will build the 2023 GMC Hummer SUV, a Cruise Origin self-driving car and the Silverado E pickup at Factory ZERO. GM has said it will eventually employ 2,200 people  at the plant.

More: President Biden coming to Detroit next week to talk up infrastructure bill at GM plant

More: Peculiar steel beam marks last days at GM's Detroit-Hamtramck plant

Contact Jamie L. LaReau at 313-222-2149 or [email protected] . Follow her on Twitter @ jlareauan . Read more on General Motors and sign up for our autos newsletter . Become a subscriber .

General Motors opens ‘Factory Zero’

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General Motors has opened its ‘Factory Zero’ in Detroit-Hamtramck in the presence of US President Joe Biden. The company sees the conversion of the factory into an all-electric car plant as “a model for future renovations” of its existing facilities.

Pre-series production of the GMC Hummer EV electric pickup has already begun at the factory, which was converted into an all-electric car plant at the beginning of 2020 . The first units are to be delivered to customers this year. Soon, the SUV version of the GMC Hummer EV , the electric Chevrolet Silverado and the electric shuttle Cruise Origin will also be rolling off production lines at Factory Zero.

All these vehicles are based on the Ultium platform, which the manufacturer is calling “the heart of the EV product strategy”. This vehicle architecture includes not only the proprietary batteries (manufactured by Ultium Cells, a joint venture with LGES) but also the proprietary drive units called Ultium Drive and the power electronics.

Since the Ultium platform can cover more vehicle segments than internal combustion platforms, GM hopes for great savings potential. General Motors says that this platform for zero-emission vehicles will enable the company to standardise and streamline machinery, tooling and assembly processes. They say that this kind of flexibility allows for lower capital investment and greater efficiency as additional assembly line conversions take place.

General Motors CEO Mary Barra said: “GM’s U.S. manufacturing expertise is key to achieving our all-electric future”. In the presence of US President Biden, she said:  “We’ve equipped Factory Zero with the best and most advanced technology in the world to build the highest quality electric vehicles for our customers.”

The term ‘Zero’ is meant to stand not only for zero emissions from the electric vehicles built there but also for “GM’s vision of a world with zero crashes, zero emissions and zero congestion.”

General Motors claims that the conversion of the existing factory cost only about two-thirds of what it would have cost to build a new greenfield plant. The company hopes to avoid 15 billion US dollars (13.2 billion euros) in costs by 2030 when it converts other plants. When all plants have been converted towards electric vehicles, the amount saved is expected to amount to 20 to 30 billion dollars – this capital will instead be invested in customer-oriented products, services and technologies.

“To meet our ambitious EV transition, GM’s North American EV vehicle assembly capacity will reach 20 per cent by 2025, and then 50 per cent by 2030,” said Gerald Johnson, GM’s executive vice president of global manufacturing and sustainability. “Factory ZERO serves as a model for transitions that will take place at other factories around the world in the coming years.”

General Motors did release a picture of US President Biden next to a GMC Hummer EV, but a quote from Biden was not included in the press release. The US president had recently caused disgruntlement among international carmakers, with the stipulation that EV subsidies would only apply to electric vehicles built in the US.

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Biden at GM plant promises jobs of future will be in Michigan

Detroit  — On the assembly plant floor of General Motor Co.'s newly renovated Factory Zero electric vehicle plant, President Joe Biden on Wednesday took a victory lap on passage of the bipartisan infrastructure bill and pitched the importance of further spending to accelerate EV adoption.

He painted a picture of a nation on the precipice of resurgence thanks to industrial innovation in green technology and argued it could all be done without increasing inflation or veering into significant debt. 

"We're going to make sure that the jobs of the future end up here in Michigan, not halfway around the world," he said. "Here in Detroit, we're going to set a new pace for electric vehicles. This is not hyperbole. It's a fact."

Biden was joined by GM CEO Mary Barra, United Auto Workers President Ray Curry, Labor Secretary Marty Walsh, members of Michigan's Congressional delegation and more at the event, which launched the new Factory Zero Detroit-Hamtramck Assembly Center. It is GM's second EV plant so far within its North American footprint and is central to the company's plan to pivot from gas and diesel-powered vehicles to EVs.

Before delivering formal remarks, Biden toured the plant and took a spin in the new Hummer EV pickup. It will be produced at the plant along with other electric vehicles, including an electric Chevrolet Silverado pickup and the autonomous, electric Cruise Origin. He later called the Hummer "one hell of a vehicle" and marveled at its speed.

"Anyone want to jump in the back, or on the roof?" Biden joked with reporters and attendees. "This sucker's something else!"

During the plant tour, Biden commented on how "exciting" he found the new plant, said GM is helping to "change everything" and noted jobs at the plant are among the "most coveted" of union positions, according to pool reports.

Biden said the infrastructure bill signed on Monday would help the United States begin truly competing with China to dominate the future global electric vehicle supply chain. The bill includes $7.5 billion to help build out a nationwide electric vehicle charging network and $7.5 billion for electric school buses.  

But the proposed $1.75 trillion climate and social safety net package Democrats hope to vote on by the end of the week would include significantly more money to spark EV adoption, including billions of dollars in funding to re-tool or build clean energy and auto manufacturing facilities and funding for up to $12,500 consumer rebates for EVs. 

"For most of the 21st century, we led the world by significant margin because we invested in our people, we invested in ourselves," Biden said. "But something went wrong along the way.

"We stopped. We risk losing our edge as a nation, and China and the rest of the world are catching up. Well, we're about to turn that around in a big, big way."

The Detroit-Hamtramck plant is an example of the kinds of projects the legislation may support if passed. The 36-year-old plant was earmarked for closure by GM in 2018, but instead the automaker — following a 40-day strike by the UAW in fall 2019 — decided to invest $2.2 billion here to make EVs.

The plant is now in the pre-production phase for the GMC Hummer EV pickup, which will arrive at dealerships by year's end. The Hummer SUV and electric Chevrolet Silverado will also be built here. When fully operational, the plant is supposed to employ 2,200.

Factory Zero is one of five North American plants GM has so far slated to build electric vehicles. The automaker plans to sell 1 million EVs globally by 2025 and wants to have a zero-emissions lineup by 2035. 

Electric vehicles sales made up 1.9% of total auto sales in 2020, but they are expected to grow to 14.8% by 2025 and 34.1% by 2030, according to an IHS Markit forecast.

Barra, who once was the plant manager at the factory, said she "could not have imagined the role I would play someday in charting the future of transportation." 

The company is spending $35 billion in EVs and autonomous vehicles globally between 2020 and 2025 and plans to launch 30 new EV models by 2025, she said, adding the new Factory Zero will double the number of employees of the old plant. 

"It sets the stage for what's to come here and at many other GM facilities in the United States that will be transformed to support the production of full-electric vehicles," she said. "I personally have never been more optimistic about our company and our industry."

UAW leaders, too, expressed optimism that the future of transportation would be built by union members. The Build Back Better Act currently includes policy that would make union organizing easier, increase penalties for labor violations and give the UAW and the Detroit Three a leg up over competitors through a $4,500 tax credit for EVs built by union workers spearheaded by Rep. Dan Kildee, D-Flint Township, and Sen. Debbie Stabenow, D-Lansing. 

"Mr. President, you are the first president that I can recall standing up and using the word 'union,'" Curry said. "And, Mr. President, when you use the word 'union,' you back it up."

Biden also touted provisions in the infrastructure package that would combat PFAS chemicals, expand access to broadband internet, improve roads and bridges, advance public transit, build up resilience to flooding and other natural disasters, reduce supply chain bottlenecks.  

"There's so much more in this law," he said. "But most of all this law does something truly historic — this law is going to help rebuild the backbone of this nation."

He said the proposed Build Back Better bill would add to that by funding paid family leave, universal preschool, lower costs for some prescription drugs and expanded home care and child care help and more.

But   Michigan Republicans in Congress on Wednesday slammed Biden ahead of his visit for rising inflation, supply chain shortages, the staggering cost of what they called his “Build Back Broke” climate and social policy plan. They also highlighted reports that he’s allegedly contemplating shutting down a segment of the Line 5 pipeline under the Straits of Mackinac — a charge the White House denies.

“They're trying to put a bow on top of this big pile of garbage that's happening in the economy right now,” said Rep. Bill Huizenga, R-Holland. “The simple fact is real people are being hurt.

"Whether it is in the cost of autos — which is a huge issue for us in Michigan and for me in my district with a tremendous number of suppliers. Whether it's getting washing machines and refrigerators and things like that. It is having a real impact on people.”

Rep. Tim Walberg, R-Tipton, said he's glad GM's electric vehicle production will happen at the repurposed plant in Michigan. But he added "there will probably be less employees" because it doesn't take as many people to build EVs as gas- and diesel-powered vehicles.

"So we're gonna have to find a way to make sure that the others have the opportunity to find a life calling, as it were, in another field," Walberg said. 

And Rep. Lisa McClain, R-Bruce Township, ahead of the visit questioned the proposal in the Build Back Better bill that would offer $4,500 in consumer tax credits for cars made by union workers. 

“Why do you only get a tax credit if it's a union-made car? What's the matter with the non-union people? Why can't we do both?” McClain said. “If we're going to give tax credits, let's give tax credits for innovation, which works, and let's stop picking winners and losers.”

Canadian officials, foreign automakers and Tesla Inc. have opposed the EV tax credit proposal. Asked about the opposition on the way to Detroit, White House spokesman Chris Meagher said Biden is doing what he promised by “rebuilding” the middle class.

“He’s long said that the middle class built America, and that unions built the middle class. He's supporting providing workers the opportunity to organize for good jobs, good wages and good benefits,” Meagher said.

“There's a long history of using tax credits to incentivize choices, and that's true here. They'll lower the cost of EVs by $12,500 for a middle-class family, they'll bolster domestic manufacturing supplies across the country, and they'll position America to out-compete the world when it comes to EVs.”

Michigan's Democratic members of Congress praised the visit and the recently passed infrastructure legislation as a pivotal moment in Michigan and the auto industry's history. 

"We are living in a time in America where we can tell our children that we wrote history in America by believing in Joe Biden, believing in his vision," said Rep. Brenda Lawrence, D-Southfield, whose district includes part of the new plant.

Biden's visit is an opportunity to bring national exposure to advances in the U.S. auto industry, said Rep. Debbie Dingell, D-Dearborn. She said automakers are building high-performing electric vehicles that people want with long-range batteries. 

"The more he shows the American people that these vehicles are real ... then we're helping transform the industry. Keeping the U.S. auto industry at the front of innovation and technology," she told The Detroit News. "We put the world on wheels, now we're the new state leadership on mobility. That's what he's doing, reinforcing those messages."

Biden flew from Washington to Detroit on Wednesday afternoon on Air Force One, along with most of the Democrats in Michigan's congressional delegation. U.S. Reps. Elissa Slotkin, D-Holly, and Rashida Tlaib, D-Detroit, were not part of the group. 

Slotkin's office said she stayed in town to cast votes Wednesday afternoon. Tlaib was one of six Democrats in the House to vote against the bipartisan infrastructure bill this month because she objected to the bill being decoupled from a larger social spending and climate package. 

Democratic Gov. Gretchen Whitmer was unable to attend the event Wednesday because of previously scheduled meetings, including with leaders of the semiconductor industry in California. She plans to meet Thursday with the Semiconductor Industry Association Board of Directors to discuss ongoing efforts to increase domestic chip production and will attend the association's annual event.

Biden landed at Detroit Metropolitan Wayne County Airport aboard Air Force One around 2:20 p.m., where he briefly spoke with Lt. Gov. Garlin Gilchrist II on the tarmac. About an hour later, he arrived at the GM complex.

Despite its detailed EV plans, General Motors has ground to make up with Wall Street investors who still see Tesla Inc. and electric startups as the more valuable investments. Executives and experts expect that to change as GM gets more of its new EVs, powered by its proprietary Ultium batteries, on the market. GM's shares closed up 3% Wednesday.

The presidential visit Wednesday "should help further bolster Detroit's name in the EV game," said Jessica Caldwell, executive director of insights at Edmunds.com Inc., a vehicle information website, in a note.

"It wasn’t too long ago when the Big Three were somewhat outshadowed by startups dominating the EV news cycle. But they’ve since caught up rather aggressively, particularly within the electrified pickup space, which is vital to the Detroit automakers. They cannot afford to lose ground with trucks, which are their bread and butter vehicles."

[email protected]

Twitter: @bykaleahall

[email protected]

Twitter: @rbeggin

Washington Bureau Chief Melissa Nann Burke and Staff Writer Craig Mauger contributed.

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Zero Motorcycles Factory tour with pro-skater Bob Burnquist [Video]

Electric bike maker Zero Motorcycles filmed an interesting live tour of its Scotts Valley factory in California yesterday. You can watch the full video below. Expand Expanding Close

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