According to AP sources, GM is planning to build an assembling plant for batteries somewhere south of Detroit. The plant will be for battery packs for the upcoming Chevy Volt. According to the story:
The new factory off Interstate 75 in Brownstown Township, about 15 miles south of Detroit, will take batteries made by LG Chem in South Korea and assemble them into packs that will power the new Chevrolet Volt, said one of the [sources].
The Volt will be due in showrooms sometime next year and be able to travel 40 miles after being fully charged. There is a small engine to supply gasoline anytime after that. And how much does this new car cost? An alarming “$35,000-$40,000”. Not a good sign with oil prices apparently stabilized.
Maybe that’s why, “GM doesn’t expect to make much money on the Volt initially…”
Though 100 jobs is better than nothing, it seems clear to me that GM is merely doing this for a public relations boost and not necessarily because this will become profitable for the company. I am predicting that our string of bailouts for General Motors is far from over.
At least South Korea will see some job growth.