Chevrolet Bolt EV to disappear from lineup as new technology rolls out

General Motors' most affordable and accessible electric vehicle currently in the lineup — the Chevrolet Bolt — will eventually disappear to make way for more EVs on the automaker's Ultium platform.

GM has said the future Equinox EV, to be revealed in September, is expected to start at about $30,000, making it one of the most affordable EVs GM offers. The 2023 Bolt EV will start at $26,595 and the EUV will start at $28,195.

The Bolt and Bolt EUV, an SUV styling of the car, are on the automaker's BEV2 platform, which stands for battery electric vehicle.

But GM's upcoming EVs will be powered by its proprietary Ultium battery propulsion system, raising the question: How much longer will the Bolt be relevant to Chevrolet's lineup?

"Will Bolt be in our portfolio 'x' numbers of years from now? No, it won’t," Steve Majoros, Chevy's vice president of marketing, told the Free Press on Monday. "It’s a great product right now. It will be with us for some time. But as we scale and ramp volume here, portfolios change."

Majoros would not confirm timing for when the Bolt EVs will exit the lineup, but he said, “It’s going to be with us for the foreseeable future and as we ramp portfolio, then we’ll see about the long game for that, so … more to come.”

GM has said it will add at least four new EVs to Chevrolet in the next few years: The 2024 Silverado EV, 2024 Blazer EV, an Equinox EV and an electrified Corvette.

GM builds the Bolt vehicles at its Orion Assembly plant in Orion Township. But as part of a $7 billion investment in manufacturing in Michigan announced earlier this year, GM is upgrading the plant to start building the Silverado EV and electric GMC Sierra at Orion in 2024. GM said production of the Bolt EV and EUV "will continue during the plant’s conversion."

GM's luxury brand Cadillac is rolling out the 2023 Lyriq SUV now, GMC has the 2022 Hummer pickup out and Buick will also get an EV in the next few years. GM intends for all its vehicles across its four brands to be electric by 2035.

This would not be the first time Chevrolet bumps a vehicle to make room for another. In 2019 Chevrolet retired the hybrid Volt to make way for the all-electric Bolt, which gets about 250 miles on a single charge.

“We’re in the pioneering stages of EV technology,” said Michelle Krebs, executive analyst at Cox Automotive. “We will see a lot of new product coming to the market and we may see some product go. BMW eliminated a lot of its early EVs.”

Krebs said there remains the possibility of GM keeping the Bolt name to use on a new EV, "if they feel it has value."

GM revealed the Bolt as a concept car in January 2015 and started producing them in 2016. Since then, it has sold more than 140,000.

But it hit a snag last year when GM had to recall all 2017-22 model year Bolts due to defective batteries that posed a potential fire risk. GM stopped building new Bolts late last year to work with its battery maker LG Energy Solution on fixing the batteries in that recall.

With a battery fix under way, Chevrolet restarted production in April at Orion. It is working to bring production back up with a goal this year of surpassing the Bolt's annual sales record of 24,000. In the second quarter, GM sold 6,945 Bolt EVs and EUVs, down 38.3% from the year-ago period.

But Majoros said Chevrolet has pent-up demand for the Bolt. Last month, GM said it will be cutting the price for the 2023 Bolt and Bolt EUV by about $6,000. The 2023 model year Bolt EV will start at $26,595. The 2023 Bolt EUV will start at $28,195. Both prices include the delivery fee.

The price reduction is to ensure the Bolt EV/EUV are competitive in the marketplace by making affordability a priority, GM has said.

Jesse Toprak, chief analyst at Autonomy, an EV subscription company, said GM's decision to lower the price of the Bolt will make it the cheapest EV available and potentially bring in new customers.

Majoros said even when the Bolt eventually fades from the lineup, it offers value now.

“Products come and go all the time," Majoros said. "It’s what right for the customer at this time if you want to get into an EV that has an attractive price point, great styling, great technology, phenomenal range" and free home installation of chargers.

More:A unique GM lab in Milford holds secrets to future EV driving here, and on the moon

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Contact Jamie L. LaReau at jlareau@freepress.com. Follow her on Twitter @jlareauan. Read more on General Motors and sign up for our autos newsletter. Become a subscriber.

GM voluntary buyouts: Details of offer to salaried workers

An ordinary Thursday turned into a day of uncertainty and confusion when General Motors salaried workers heard that voluntary buyouts, which some dub as generous offers, were suddenly on the table.

Anyone who wants to go has until noon, Eastern time, March 24, to decide. Yes, we’re talking about just two weeks here to figure out if you’d stay or go.

The good news is that Thursday's news wasn't another sudden layoff. GM announced job cuts in late February. Now, it's offering a voluntary buyout to salaried workers. Hourly employees are not eligible.

“Right now, it’s a voluntary package, so it’s only an opportunity,” said David Kudla, CEO of Mainstay Capital Management in Troy.

A chance to consider if you want to switch careers, take your talents elsewhere, or even retire.

GM makes buyout look tempting

Kudla calls the deal on the table a “pretty good package.” Someone who has been with the company 12 years or more is looking at a maximum of 12 months in severance pay.

“We got a lot of calls today,” Kudla said Thursday afternoon, shortly after the big news on the GM buyouts broke.

Getting a year of severance could be very tempting for many who have been with GM for a while. And some predict that there could be plenty of takers — and not just those who are close to retirement.

GM has communicated a message that it needs to get leaner as the industry pushes to expand electric vehicle sales. The automaker wants to accelerate attrition and achieve $2 billion in cost savings by the end of 2024.

"Employees are strongly encouraged to consider the program," said GM spokesperson David Barnas.

"By permanently bringing down structured costs, we can improve vehicle profitability and remain nimble in an increasingly competitive market.”

On a rough day on Wall Street, auto stocks took a bigger hit. GM stock closed at $37.82 a share Thursday, down $1.94 a share or 4.88%. The Dow Jones Industrial Average closed at 32,254.86 points, down 543.54 points or 1.66%.

Phones start ringing

Financial advisers like Sam Huszczo said their phones started ringing off the hook Thursday once GM told salaried workers about the buyout packages to reduce its costs and workforce.

"A rich offer like this is showing that they're serious about that strategy," said Huszczo, a chartered financial analyst in Southfield.

Some employees might be surprised to hear about a buyout now, he said, because often automakers have rolled out such deals around August or September. The news of the latest buyout comes early in the year. And it's got some real money behind it.

"This feels like GM is just trying to throw money to solve this issue at the moment. And it will give a nice transition to the people who take it," Huszczo said.

The latest GM offer, Huszczo said, is better than a voluntary buyout back in 2018 when a GM employee with 12 years of service was offered just six months in severance. In 2018, financial planners said, clients saw offers of up to six months of severance, including health care coverage during that time. Those on the executive level received one year of severance in 2018, planners said.

The 2023 offer is being made to all U.S. salaried employees with five years or more of service as of June 30, 2023. A buyout offer is being made to all GM global executives with at least two years of service.

GM said it is offering three packages based on level and service to the company.

"This GM offer is a good offer," said Huszczo, who has reviewed auto buyouts for clients for several years.

"It doesn't mean everybody should take it. But it is an offer that I think is better than what we've seen in the past."

Some details of the deal

GM’s Voluntary Separation Program, based on a memo obtained by the Free Press and sent to U.S. salaried workers Thursday, includes the following:

Severance: “One month of pay for every year of service up to 12 months of pay, paid as a lump sum,” according to the GM memo.

“One month of pay for every year of service up to 12 months of pay, paid as a lump sum,” according to the GM memo. Some money for health coverage: “Employees enrolled in the company’s group medical plan will receive an additional lump sum payment that equals their monthly cost to continue group health benefits under COBRA, for every year of service up to 12 months,” the memo stated.

“Employees enrolled in the company’s group medical plan will receive an additional lump sum payment that equals their monthly cost to continue group health benefits under COBRA, for every year of service up to 12 months,” the memo stated. Keeping some bonus cash: The bonus would be pro-rated for the 2023 performance year, paid as a lump sum, according to the memo.

The bonus would be pro-rated for the 2023 performance year, paid as a lump sum, according to the memo. Help looking for work: “Outplacement assistance, if requested, for 3 months.”

“Outplacement assistance, if requested, for 3 months.” They can keep the car for a little while. GM’s memo said: “Most company vehicle drivers may retain the use of their company vehicle until their final day of employment or April 28, 2023 (whichever comes later), with some exceptions.” The employee is going to be responsible for all fuel expenses and maintenance once they are no longer actively working.

GM said all global executives with at least two years of service are eligible for a package that includes base salary, incentives, COBRA and outplacement services.

As with any buyout offer, GM employees must think carefully about their next move.

Will a buyout work for you?

Kudla said leaving voluntarily and accepting the severance package can make sense for someone who is looking to leave GM anyway in the next year or so.

Or it can work for someone who is financially and emotionally prepared to retire soon. Kudla's firm is offering to email a report to those considering a buyout called “Separating From GM” if they sign up at www.mainstaycapital.com.

Kudla said it's hard to speculate whether more layoffs and job cuts would be ahead at GM. Instead, he suggested that employees considering a buyout look at their own balance sheets. When it comes to all buyout packages, Kudla said, it's important that employees view those offers within the context of their own financial plan.

More:GM job cuts leave some employees distraught, analysts unimpressed

More:GM to make more job cuts, trim costs with voluntary separation offers

More:1,000 salaried Ford workers retire after pension warning from automaker

More:What Ford salaried workers saw as a payout in latest layoffs

Tough discussions ahead in next few days

Everyone’s situation is going to be different. Some GM employees may have children still in college. Others might have just bought a brand-new home. And, yes, many fear what could happen if they don’t take the buyout and opt to stay at GM.

Could they be laid off in the future? Are they prepared to find another job? If they’re considering retiring, are they ready to move onto the next chapter? What kind of savings will they be able to tap into as they go forward?

Are they prepared if there is a recession ahead in the next year or so?

Many times, these sorts of offers or situations have a limited window, which can trigger some emotional upheaval.

Some might feel rushed now because the offer is better than what's been available to others who faced layoffs.

The severance payout that Ford offered salaried workers who were laid off last year was less generous.

The maximum payout for laid-off salaried employees at Ford in late August was nine months for those who had 20 years or more with the company, plus medical coverage during that time.

Someone with 10 years to 11 years of service at Ford, for example, saw four months of pay in a lump sum as part of their severance and six months of health care coverage.

Huszczo said it's important to take a hard look at the data — and various scenarios for your future ― before making any decision. How much debt are you carrying? How likely is it that you can you easily move forward elsewhere?

Having a choice on what to do next is far better than being shown the door.

Even so, you cannot make a big move just because you're worried that another round of layoffs is ahead. Or allow the emotional roller coaster to get the better of you simply because a decision is needed in just a few weeks.

Contact Susan Tompor: stompor@freepress.com. Follow her on Twitter @tompor. To subscribe, please go to freep.com/specialoffer.

GM to offer a high-end design center exclusively for select clients

For the select few who pass General Motors' vetting process and qualify to buy the ultra-luxury Celestiq electric vehicle, the automaker will give them access to a design facility, to be called Cadillac House at Vanderbilt, where they can work directly with designers to personalize their car.

Cadillac will hand-build the Celestiq and is expected to make fewer than 500 a year. It will arrive to customers in late spring 2024. In a few months, Cadillac will open pre-orders for the car, Joe Singer, Cadillac spokesman, told the Free Press. It a "ultra low-volume" production vehicle for "a high-net worth customer," Singer said. He added that "Anyone can pre-order, but not everyone will get the vehicle."

If you want one, along with an invite to Cadillac House at Vanderbilt, check your bank account. The car starts at $300,000.

Rock star client among the first

Celestiq customers from around the globe will have access to Cadillac House at Vanderbilt, which includes a one-on-one concierge to guide clients through the personalization process and provide access to a Cadillac designer and other exclusive services.

One of the first Celestiq clients is rock star Lenny Kravitz, who talked about his grandfather's love Cadillac and said, "I've always dreamed of designing my own car," in this video Cadillac released in October.

“We’re still engaging with Lenny at this point," Singer said. "I don’t have any updates that I can share about his vehicle. We are continuing that partnership with him.”

A building of unique design and heritage

The Cadillac House is named after designer Suzanne Vanderbilt, who joined GM Design in 1955. She worked in the Cadillac studio and was one of a handful of women car designers at the time. Her early work included the design of a 1958 Eldorado Seville Coupe called Baroness and the Cadillac Saxony convertible. She retired in 1977.

Cadillac House at Vanderbilt is a single-story, 30,000 square-foot modernist-style building at GM Global Technical Center in Warren designed by architect Eero Saarinen. It is near the main entrance and served as Central Restaurant with a wide glass wall, offering panoramic views of the campus. The design won an Honor Award from the American Institute of Architects in 1955.

GM will complete a redesign of the space by late summer. Clients will be able to visit Cadillac House in person or virtually for, "a unique opportunity to collaborate with our design team, enabling clients to directly translate their vision of their Celestiq into a one-of-one piece of moving sculpture," said Bryan Nesbitt, executive director of Global Cadillac Design, in a statement.

More:Cadillac aims to prove it's still the world’s finest automaker with the 2024 Celestiq EV

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Contact Jamie L. LaReau: jlareau@freepress.com. Follow her on Twitter @jlareauan. Read more on General Motors and sign up for our autos newsletter. Become a subscriber.

GM's white-collar workers face deadline to consider buyout offer ...

General Motors Co. white-collar workers who want to take a buyout have a noon deadline Friday. But they could end up waiting up until March 31 to know whether GM will let them stay or go.

For some, the last day of work could be as early as April 1. But some who accept the voluntary buyout will be required to stay beyond April 1 to assist in the transition of their work duties at GM. All would leave by June 30.

GM salaried employees have been able to change their mind during the window of the offer, which began March 9 until March 24, but at noon March 24, decisions will become final, according to Maria Raynal, a GM spokesperson.

The final decision on who stays or goes rests with the automaker's executives.

“If there is an important business reason to retain a person, they can deny the employee’s expression of interest. If employees are turned down for separation it means that leadership sees them as important to the organization going forward,” according to an FAQ obtained by the Free Press that GM supplied to employees.

Financial planners across Michigan and other parts of the country spent the past two weeks talking with existing clients and reaching out to new ones as GM salaried employees weighed one of the biggest financial moves of their careers: Stay or go?

Could my job get cut later?

"The biggest concern we've heard revolves around the 'what if' factor," said Jack Riashi Jr., a financial adviser with Bloom Advisors in Farmington Hills.

What if they don’t take the money offered in a buyout but later see GM cut their job? What if GM has trouble down the line reaching a $2 billion cost-cutting target? GM said the program is being offered as a "way to accelerate attrition and achieve $2 billion in cost savings by the end of 2024."

What if someone in her 30s or 40s takes the buyout but cannot find a new job after the buyout money is gone?

More:GM puts generous buyout on the table: What salaried workers should consider

More:Chevrolet will end Camaro production in 2024 as it shifts to electric lineup

The employees, Riashi said, who seem to be the least likely to take the buyout are the ones who are confident in their role at the company.

How will this impact me but also my co-workers?

GM employees aren't reflecting publicly on how they're handling the pressure to make a decision or what they feel about the terms on the table. One salaried employee told me she wasn't able to make a statement given GM's strict rules on the process. Employees were instructed by GM in an FAQ to not comment to the media about the buyout.

GM made the offer to a majority of its 58,000 U.S. white-collar employees.

More:GM looks to hire tech talent from massive job cuts in Silicon Valley

More:GM job cuts leave some employees distraught, analysts unimpressed

David Kudla, CEO of Mainstay Capital Management in Troy, said phones have been ringing consistently and the firm's staff has been working 10-hour to 12-hour days to answer questions, as GM employees have had just two weeks to make a big decision.

"Many who are within a year of their planned retirement are taking the voluntary separation program," said Kudla, who says his firm has answered questions for hundreds of GM employees.

"Those who were within a couple years of retirement are considering the offer, and many are taking it."

Part of the conversation, he said, often involves wondering what leaving the company soon would mean for co-workers or how leaving might impact a specific vehicle program where the GM salaried employee is directly involved.

"What I have found that is very admirable is the loyalty to GM, their vehicle program and fellow employees," Kudla said.

GM initially rolled out the generous buyout offers — putting up to 12 months of severance on the table for those with 12 years or more of service — on March 9 to salaried employees in the United States with five years or more of service as of June 30. Severance is one month of pay for every year of service up to 12 months of pay, paid as a lump sum.

A buyout offer is being made to all GM global executives with at least two years of service, as well.

The offer applies to GM salaried employees, not hourly. Contract talks between GM and the United Auto Workers union will take place this year; the contract exprires in September.

Can I keep the cellphone?

The FAQ, which was updated March 13, included questions from GM employees like: What if I missed the June 30 cutoff for the five-year length of service by just a few months? Can I get a buyout? Answer: No.

Question: Are “salaried represented” included in the program? Answer: Yes.

Question: “Since the medical COBRA equivalent will be paid in a lump sum, will I receive money to offset the applicable taxes?” Answer: No.

GM earlier told employees that those enrolled in the company’s group medical plan will receive an additional lump sum that equals their monthly cost to continue group health benefits under COBRA, for every year of service up to 12 months.

Question: “Can I keep my GM issued cellphone upon termination?” Answer: “No, you cannot keep your phone, but you can keep your number.”

Steve Azoury, owner of Azoury Financial in Troy, said he has heard from about a half a dozen people who work at GM. For one woman who is 61, he said, the buyout figure was around $115,000 and sounded pretty good. She had been with the company for 10 years.

But he told her that she shouldn't take the buyout. She was making good money and the buyout, in his view, was not enough money to give up a job for someone who wants to keep working.

"Then again, if she keeps her position, what’s keeping General Motors from tapping her on the shoulder in two months and walking her out? It’s a tough call for those in this situation," Azoury said.

Daniel Milan, managing partner and investment adviser representative at Cornerstone Financial Services in Southfield, said the firm has heard from about 15 GM employees.

"As always, the older someone is, the more likely they are to accept the offer," Milan said.

The deadline gets real

Financial advisers like Sam Huszczo said some clients started reviewing their options just a week ago.

"Then over the weekend, this deadline got real for people," Huszczo said Thursday. "I will have been working from 7 a.m. to 10 p.m. for four days straight, including today." He was set to meet with 20 employees through Thursday.

Some people, he said, appear to be really on the fence.

One GM employee was on luxurious vacation in the sun for two weeks when the news broke but hadn't been checking the phone or emails. He returned home to find out about the buyout on Tuesday.

"He walked into a hornet's nest," Huszczo said.

The rumor mill, according to some GM employees that he's talked with, seems to indicate that upper management isn’t getting the number of takers that they were hoping to get at this point.

But Huszczo said it's very likely way too early to tell, as most people planning to take the offer won't officially put their name in until Thursday evening or Friday morning.

Many clients within two years of retiring anyway, he said, seem to be more willing to take the offer.

Some had been looking for other jobs before this news and had serious irons in the fire. Some younger employees want to switch to new opportunities in new industries.

Many who have had a tougher time deciding, Huszczo said, are those long-term GM salaried workers who might be three to five years away from the day they once wanted to retire.

“This is too short of a time frame to make a decision on something that’s been in your life for 25-plus years,” Huszczo said. “And it feels rushed from their vantage point. The default setting for people feeling rushed is to do nothing, to avoid a mistake.”

Contact Susan Tompor: stompor@freepress.com. Follow her on Twitter @tompor. To subscribe, please go to freep.com/specialoffer.

GM's new Canada factory will be key to Michigan electric vehicle ...

General Motors will build a new factory in Quebec, Canada, as part of a joint venture with a South Korean chemical maker that will be key to Michigan's future building electric vehicles.

On Monday, GM and POSCO Chemical said they are working with the governments of Canada and Quebec to build a new factory in Bécancour, Quebec, which is about midway between Montreal and Quebec City.

Construction of the new factory, which will begin immediately, will cost about $400 million ($500 million Canadian). It will create 200 jobs once it's operating in 2024, GM said. It will eventually feed critical battery materials to several U.S. battery plants, including one to be built in Lansing.

“GM and our supplier partners are creating a new, more secure and more sustainable ecosystem for EVs, built on a foundation of North American resources, technology and manufacturing expertise,” Doug Parks, GM executive vice president of Global Product Development, Purchasing and Supply Chain, said in a statement.

Material comes to Michigan

In December GM signed a "non-binding term sheet" to create a joint venture with POSCO. The automaker executed definitive agreements with POSCO in the first quarter. POSCO is the majority owner, GM said.

GM declined to provide dollar figures of its savings in battery cell development from the joint venture "due to competitive reasons," said GM spokesman David Barnas.

But for a previous story, Parks said that "we hope to yield significant cost reduction in this space" from processing cathode active material with POSCO versus buying it from a supplier.

The new facility, once running, will make cathode active material, or CAM, for GM’s Ultium batteries. CAM is a key battery ingredient consisting of processed nickel, lithium and other materials representing about 40% of the cost of a battery cell, Parks said.

The Quebec site’s construction will allow for future expansion as GM continues to pursue other potential EV supply chain projects, Parks said.

Unifor, the union that represents Canada's autoworkers, said GM's decision to build a factory in Canada is good news for the country and its workforce.

"Today’s announcement by GM is the latest in a series of good news stories, further proving that Canada has everything it takes to be a world leader in electric vehicle and critical component manufacturing all across the supply chain," said Shane Wark, Unifor assistant to the national president, in a statement. "Unifor welcomes this announcement and hundreds of new auto sector jobs to Bécancour."

GM's Ultium platform and battery cells will power upcoming EVs such as the Chevrolet Silverado EV pickup, GMC Hummer pickup and SUV and Cadillac Lyriq SUV.

GM just started building the Hummer EV at Factory ZERO in Detroit and Hamtramck late last year. That plant also will build a Hummer SUV, Cruise Origin and the 2024 Silverado EV in the future.

GM also will spend $4 billion to convert its existing factory in Orion Township to make Silverado electric pickups. GM has said it will spend about half a billion dollars to make upgrades to its two existing vehicle assembly plants in Lansing.

GM's new U.S. plants

The Quebec facility will supply CAM to the Ultium Cells LLC facilities that GM and LG Energy Solutions are building as part of that joint venture.

One of those plants will be in Lordstown, Ohio, which starts operating this year.

Construction continues on a second Ultium Cells plant in Spring Hill, Tennessee. GM will start building the 2023 Cadillac Lyriq this spring at nearby Spring Hill Assembly.

In January, GM said it will invest $7 billion in Michigan factories over the next few years, which will create 4,000 jobs and retain another 1,000 jobs. That breaks down to GM spending $2.6 billion to build a new battery factory in the Lansing area. The 2.8 million-square-foot facility is scheduled to open in late 2024.

GM has said it will build a fourth Ultium Cells factory, but it has not disclosed the location yet.

GM also is investing more than $1 billion at its manufacturing complex in Ramos Arizpe, Coahuila, Mexico, for a new paint shop and innovative technology. That complex will start operations in June 2021 to build 2023 model year EVs.

More:'Slap in the face' UAW says of GM's move to build EVs in Mexico

In January 2021, GM said it would invest $800 million to convert CAMI Assembly in Ingersoll, Ontario, to Canada’s first large-scale electric delivery vehicle manufacturing plant building electric commercial vans for GM's start-up BrightDrop.

More:GM's BrightDrop adds Walmart as EV customer, expands order with FedEx

“With this new processing facility in Bécancour, GM will help lead the EV battery supply chain while also launching Canada’s first full EV manufacturing plant in Ingersoll, Ontario, later this year," said Scott Bell, president and managing director, GM Canada.

Made in North America

GM is investing $35 billion through 2025 to develop EVs and self-driving cars. It has said it will introduce 30 new EVs globally by middecade with plans to deliver more than 1 million annual global EV sales by 2030.

POSCO said in December the joint venture will help it advance its own research and accelerate the adoption of EVs based on product development, mass production capacity and raw materials competitiveness.

“POSCO Chemical is set to expand battery material supplying capability across North America through establishing a cathode material plant in Canada,” POSCO CEO Min Kyung-Zoon said in a statement.

By the end of 2025, GM has said it plans to have capacity to build 1 million electric vehicles in North America, and the company targets the majority of components by value to be sustainably sourced, processed or manufactured in North America.

More:GM names new executive leaders to supply chain and self-driving units

More:Personal conflict led GM exec Steve Kiefer to retire

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

Honda is spending $3.5 billion to build a battery factory in Ohio ...

CNN —

Honda and South Korean battery maker LG Energy Solutions are investing $3.5 billion to build a joint venture battery factory in southern Ohio, the car company said Tuesday.

An exact location hasn’t been announced but the factory, which is expected to employ 2,200 people, will be in Fayette County, southwest of Columbus. Honda did not say how much of the $3.5 billion it would contribute. Honda already employs almost almost 11,000 people in its various manufacturing facilities in the state.

Construction on the battery plant is expected to begin early next year and should be completed by the end of 2024. Lithium-ion battery cell production is scheduled to begin at the factory about a year after construction is completed, according to Honda.

Honda and LG are ultimately expected to invest a total of $4.4 billion in the facility, Honda said in its announcement.

Honda recently revealed the design of its next electric SUV, the Honda Prologue. That SUV, as well as other upcoming electric vehicles from Honda and its Acura luxury brand, will be based on General Motors engineering and will use GM’s Ultium battery packs. But the batteries being made at the new factory in Fayette County will be specifically for Honda and will go into other future electric vehicles of Honda’s own design. These vehicles will start going on sale in 2026.

Honda will also invest another $700 million to make changes to three existing factories in Ohio to prepare them to make electric vehicles and major components for EVs. Changes will be made to Honda’s Marysville Auto Plant, East Liberty Auto Plant and Anna Engine Plant. The addition of electric vehicle production at these plants, which will also continue making combustion-powered vehicles for some time, will add about 300 jobs, according to Honda.

The changes will enable the Anna Engine Plant to produce battery cases. At the Marysville plant, battery cells from the Fayette County battery factory will be installed in the battery cases made in Anna. The completed battery packs will be put into electric vehicles built at both Marysville and East Liberty.

Honda has said it plans to sell only electric vehicles in major markets, including the United States, by 2040.

Manufacturing batteries, battery packs and electric vehicles in the United States could make the new Honda EVs eligible for tax credits under the new Inflation Reduction Act expected to go into effect beginning next year. These manufacturing and investment plans were made long before that law was passed, said Bob Nelson, executive vice president of American Honda Motor Co.

The Marysville factory opened in 1982 and was Honda’s first auto factory in the United States. Honda now has 18 factories producing Honda and Acura vehicles in the United States.

GM to cut jobs, trim costs with voluntary separation offers

About a week after General Motors unexpectedly cut several hundred jobs to help it trim costs and form a top-tier workforce to guide its transition to an all-electric car company, CEO Mary Barra told employees Thursday morning that there will be more job eliminations to come — this time voluntary.

In the memo, obtained by the Free Press, Barra told employees that GM will offer a voluntary separation program to all U.S. salaried employees with five or more years of service, and to all global executives with two or more years with the automaker. The memo said the idea is to “accelerate attrition" and, she wrote, "taking this step now will avoid the potential for involuntary actions" in the future.

GM will release the details of the packages to qualified salaried employees later Thursday, but shared some of it with the Free Press as listed below. The employees will have until March 24 to take the package. The memo said GM Korea will offer a voluntary separation package to be communicated locally and GM International will continue with "limited business optimization and performance management as required." The program is not being offered to employees in Canada, Europe, Mexico or China, the memo said.

GM spokesperson David Barnas confirmed the contents of the memo saying it is "part of our plan to accelerate attrition and achieve $2 billion in cost savings by the end of 2024." He did not provide a target number as to how many voluntarily separations GM hopes to get.

As the Free Press first reported on Feb. 28, GM cut several hundred jobs from its global salaried workforce of 81,000 that day.

In the aftermath of those cuts, some white-collar employees said they feel betrayed by top leaders because GM CFO Paul Jacobson promised Wall Street in January there would be no layoffs at the automaker even as he announced cost savings were coming. GM defends the move saying the cuts were not layoffs, but rather performance-based separations.

More:GM Proving Ground in Milford is full of secrets — and few employees get to see it

Barnas said the voluntary separation program is part of GM's efforts to accelerate fixed cost reduction efforts, which include:

GM wants to reduce vehicle complexity and expand the use of shared systems between its internal combustion engine and future electric vehicle programs.

GM is focusing investment in growth initiatives to accelerate near-term benefits.

GM is reducing salaried staff through attrition, primarily in the U.S.

All U.S. salaried employees with at least five years of service are eligible for one month pay for every year of service up to 12 months and COBRA health care benefit. They will get a pro-rated performance bonus and access to outplacement services.

All global executives with at least two years of service are eligible for a package which includes their base salary, incentives, COBRA and outplacement services.

Contact Jamie L. LaReau: jlareau@freepress.com. Follow her on Twitter @jlareauan. Read more on General Motors and sign up for our autos newsletter. Become a subscriber

Cars that are being discontinued in 2023: Say goodbye to these ...

It's the end of the road for several car models.

The fleet of vehicles being discontinued includes a number of passenger cars such as the Chevrolet Spark, the Toyota Avalon and the Honda Insight as Americans continue to flock to SUVs.

"The extra-small SUVs are definitely becoming a much more popular entry-level for these brands," says Will Kaufman, news editor at car research site Edmunds.

Automakers discontinue models in response to evolving consumer tastes and declining sales. Some brands ditch vehicles that compete with others in their lineup.

Here are some cars and SUVs you won't see in showrooms in 2023, according to Edmunds:

Acura ILX

The ILX compact luxury sedan came out in 2013 as the brand's entry-level model and hadn't gotten a major update since its release. Now, the reborn 2023 Integra will serve as first-time buyers' point of entry into Acura's lineup.

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Buick Encore

The Encore subcompact was introduced in the 2013 model year with the hopes of attracting younger buyers. Sales of the Encore in the January-through-September period fell nearly 42% in 2022 compared with the same stretch in 2021, according to General Motors.

"The Buick Encore going away makes a lot of sense because Buick's already selling the Encore GX, which is a related similarly sized model," said Edmunds' Kaufman. "No sense to have competition there on the inside."

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Chevrolet Spark

Chevrolet ceased production of the Spark subcompact in August, according to Edmunds. The Spark was one of the cheapest new cars on the market, starting at $14,595 with destination and handling charges.

Ford EcoSport

Ford said last year that the EcoSport subcompact crossover SUV would be removed from the U.S. market in 2022, the Detroit Free Press reported. The model, Ford's smallest and most affordable SUV, has been available only since late 2017 and has seen sales decline.

Ford:You can find F-150, Explorer, Escape SUVs easily. You'll have to wait for others.

Honda Insight

Honda announced this year that its Indiana plant would end production of the Insight hybrid sedan in June as the company focuses on its hybrid core models. Honda sold more than 70,000 Insight sedans since the model was introduced in 2018, according to the company.

"Honda is going to launch its Civic Hybrid, and that would be in competition with the Insight," Kaufman said.

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Hyundai Accent

Hyundai said in a statement that the Accent was discontinued "due to an expanded SUV lineup that includes Venue," a small SUV. With the Accent's discontinuation, the Venue becomes the brand's lowest-priced car.

"Having a small sedan as your entry-level isn't necessarily worth it at this point," Kaufman said. "Hyundai has a small SUV as an entry-level vehicle that's slightly better equipped."

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Lexus RX L

Launched in 2017, the RX L is the three-row version of the popular RX SUV, which just had a full redesign.

"It's likely they're going to make a dedicated three-row Lexus SUV," Kaufman said. "They're not going to rely on sort of this compromise solution of a slightly longer RX model."

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Toyota Avalon

Around since the mid-1990s, the Avalon has now been dropped by Toyota. But the carmaker is replacing the sedan with a new semi-luxury full-size sedan.

The Avalon "is being replaced by the Crown, which is an upcoming vehicle that is a bit of an odd duck," Kaufman said. The 2023 Crown "kind of splits the difference between a sedan and an SUV."

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Volkswagen Passat

The Passat sedan will leave U.S. Volkswagen showrooms in 2023 after a limited-edition 2022 model year run. The discontinuation came more than 30 years after the Passat nameplate made its debut in the nation, USA TODAY reported last year.

"It makes sense for Volkswagen to focus more on their SUV business right now because it's doing quite well," Kaufman said.

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Electric vehicle credits just completely changed. Here's what it ...

Washington, DC CNN Business —

The newly signed Inflation Reduction Act will have big implications for electric vehicle buyers. Some popular electric vehicles may become eligible for a tax credit once again, while other cars that were eligible this month will not be for the foreseeable future. Here’s what you need to know as a consumer.

What changed?

The old credit offered $7,500 for new electric vehicle buyers until their automaker hit a 200,000 limit for available tax credits. Plug-in hybrid buyers received a smaller credit.

The Inflation Reduction Act’s new credit immediately replaces the prior system and removes the 200,000 limit, but it creates new restrictions that are being phased in related to assembly, batteries, and supply chains. Plug-in hybrids will continue to be eligible for a partial credit.

The new law also imposes new restrictions on the price of vehicles, as well as limits on the income of the buyer.

How can I qualify for the tax credit?

There are plenty of stringent requirements for electric vehicles to receive the tax credit under the new law, which fully takes effect on January 1, 2023. Vehicles must be assembled in North America. Much of their battery components and battery minerals production must be in North America. Beginning in 2023, 40% of the critical minerals used to create a vehicle’s battery must be extracted or processed in the United States, or a country that has a free trade deal with the US, for the vehicle to qualify. By 2027, that number will rise to 80% of the battery minerals. The battery component requirement calls for 50% to be manufactured or assembled in North America starting in 2023 and 60% in 2024 and 2025. That number will gradually grow to 100% in 2029.

Under the new credit system, the MSRP of a pickup or SUV must not be over $80,000, and other vehicles like sedans must not surpass $55,000. A buyer’s income must not exceed $150,000 if single, $225,000 if the head of a household, or $300,000 if married.

Buyers purchasing a used electric vehicle or plug-in hybrid can for the first time receive as much as $4,000.

You also must purchase a vehicle before December 31, 2032.

Tesla vehicles may become eligible again next year for the tax credit as the 200,000-unit cap lifts. Justin Sullivan/Getty Images

How large is the tax credit?

New vehicles are eligible for as much as $7,500, provided their final assembly happens in North America. Half of the credit — $3,750 — depends on meeting the battery minerals requirement, and the other half depends on the battery component requirement.

There is a new credit for some buyers who purchase a used electric vehicle of up to $4,000. The credit may not exceed 30% of the vehicle’s sale price.

What vehicles are eligible to receive the $7,500 tax credit?

No electric vehicles currently available for purchase will qualify for the full tax credit when sourcing requirements go into effect in 2023, according to the Alliance for Automotive Innovation, which represents automakers like Ford, GM, Hyundai, Toyota and Volkswagen. The new tax credit significantly reduces how many vehicles are eligible. Seventy percent of electric, hybrid and fuel cell vehicles eligible for purchase in the US are now ineligible for any credit, including partial, according to the trade group.

Popular electric models like the Hyundai Ioniq 5 and Kia EV6 will lose their eligibility under the new rules unless manufacturers make changes like where the vehicles are assembled.

Teslas, including the popular Model 3 and Y, was ineligible for a credit under the past structure since Jan. 2020, when the company reached the previous 200,000-vehicle limit per automaker. However, that limit will lift on Jan. 1, 2023, and Teslas will once again qualify for a tax credit, provided the company meets all other new requirements.

Consumers can enter a vehicle’s vehicle identification number into a US Department of Transportation website to see where its final assembly occurs to determine if the vehicle is eligible for tax credit under the new law.

The Volvo S60 Recharge will be among vehicles qualifying for the credit until year's end. Adobe Stock

Are there any exceptions?

Some electric vehicles and plug-in hybrids remain eligible until year’s end due to a quirk in the bill. The North American assembly provision took effect when Biden signed the bill, but nothing else. Consumers interested in electric vehicles manufactured in North America may want to consider a purchase before January 1, when the more demanding requirements begin.

Nissan confirmed to CNN Business that the Leaf will remain eligible for the full credit through the end of 2022. Volvo expects the S60 Recharge to continue to qualify to year’s end given guidance from the Department of Energy.

The Mercedes-Benz EQS SUV is expected by the automaker to be eligible until year’s end, but not the EQS sedan because, unlike the SUV, it is not assembled in the United States. BMW says the X5 plug-in hybrid and 3-series plug-in hybrid will both be eligible for the rest of 2022.

Ford says its electric and plug-in vehicles, including the Mustang Mach-E, F-150 Lightning and Escape plug-in hybrid will be eligible for the rest of the year.

These vehicles would need to be delivered by year’s end.

Rivian vehicles are made in North America, but any new orders placed in the final months of the year are unlikely to get the credit as the automaker has an order backlog that exceeds its production goal for the year, so customers wouldn’t take delivery before 2023.

Automakers and consumers are in a state of limbo for 2023 as the government finalizes the tax credit. It’s unclear, for example, how the government will determine if a vehicle meets the battery minerals and battery component thresholds. Ultimately, the IRS will provide a list of vehicles to consumers that shows how much money they’re eligible to receive.

Buyers purchasing a new Nissan Leaf will be eligible for the tax credit until Dec. 31st, the automaker said. Pat Greenhouse/The Boston Globe/Getty Images

Why are there so many more restrictions?

Sen. Joe Manchin, a critical vote, had concerns about US reliance on foreign countries for electric vehicle components. Manchin noted that the US built its own gas-powered vehicles and engines, suggesting the country should be able to do the same with electric vehicles and batteries. The tax credits may incentive automakers to shift battery metals extraction and processing, as well as vehicle assembly, to North America. Some experts have cautioned about national security risks associated with the reliance on foreign countries for electric vehicles.

If I find an eligible vehicle, how soon can I get the tax credit money?

Initially, buyers will need to wait to receive the tax credit when they file their taxes. But starting in January 1, 2024, electric vehicle buyers will be able to receive the money immediately, at the point of sale, if they agree to transfer the credit to their dealership.

GM to idle and revamp Detroit-Hamtramck for electric cars

Among the thousands of steel beams inside General Motors' 4.1-million-square-foot Detroit-Hamtramck plant, one is particularly intriguing.

It sits about 7 feet above the internal combustion engine assembly area. To a casual observer, it's just another yellow-painted beam.

But look closer. Scribbled in marker across thick pieces of masking tape is a collection of random names and numbers: Hollywood 2-14-19, Mike 2-21-19, Curt 3-23-14, T 2-19-14, Rashe 7-16-15.

To name a few.

A manager didn't know what it meant, hadn't really noticed it before. But ask hourly workers and they know of it — and what it means.

"Hollywood, he transferred to Flint in February," said Mike Plater, chairman of the UAW Local 22. "And, T, he retired."

"Those are the people who worked there and left their mark on those dates," said Gary Henrion, an electrician at Detroit-Hamtramck.

The beam is a testament to the workers' ties to the plant. It also represents change. There's been a lot of change at the 35-year-old factory since November 2018 when GM said it would close Detroit-Hamtramck for good and soon began transferring hundreds of workers to its other plants, including Flint Assembly.

But last fall, Detroit-Hamtramck, which GM calls D-Ham, got a reprieve in the 2019 UAW contract talks. GM will invest $2.2 billion to build all-electric vehicles there.

Here is a look at the final days inside the factory as it bids farewell to one era and ushers in a new, all-electric one. For the more than 800 hourly workers in the factory, it's bittersweet. They look forward to a future, yet leave their mark on the past.

More:Detroit-Hamtramck workers will be guaranteed jobs in redesigned plant

More:It's about time Detroit-Hamtramck plant caught a break

End of the ICE

On Thursday, the body shell for the last Chevrolet Impala inched through the assembly line toward final production. As it did, several employees gathered around the car, snapping pictures as workers added the hood and it moved closer toward the annals of history.

The car is expected to roll off the line by Feb. 28. GM will then shut down the conveyor belt and sliding skillet and the manufacturing of internal combustion engines at Detroit-Hamtramck will be over. GM built the last Cadillac CT6 sedan at the plant on Jan. 24.

GM will spend the next 12-18 months ripping out the innards of the facility to reconfigure it into one of the company's most state-of-the-art factories in North America. When it's at full capacity, GM expects to employ 2,200 people there.

GM refers to the process of preparing employees and a plant to build a new vehicle as "changeover." For a model year change, the process is simple: changing out material and minor adjustments to work stations, said Kim Crawford, GM spokeswoman.

But GM plans to build a GMC Hummer electric pickup for sale later next year and the self-driving Cruise Origin EV along with other new EVs at D-Ham, making the changeover process quite involved. It requires installation and testing of new equipment, setting up each work station and creating instructions for each job to ensure safety and quality, said Crawford.

Simplified systems

Nobody knows yet what the revamped plant will look like inside, but one thing is certain, the engine assembly area underneath that monikered steel beam will be gone.

All-electric vehicles have an electric motor instead of an internal combustion engine. EVs use large traction battery packs to power the electric motor instead of gasoline.

Still, it's hard even for the cognoscenti to predict how the layout of D-Ham will change for EV production.

"It depends a lot on how they plan to build the new vehicles going in there," said Sam Abuelsamid, principal analyst at Navigant Research in Detroit. Abuelsamid is an expert on EV and AV production.

"The Cruise Origin and the Hummer pickup are radically different vehicles with different architectures and the Hummer will be substantially larger," said Abuelsamid. "While it’s certainly possible to build a flexible assembly system that can handle both, it might actually make more sense to have separate lines."

The assembly process for the Origin will likely be much simpler than that of the Hummer, he said. So a shorter, dedicated line for that vehicle makes sense.

"Even the Hummer line can be shorter than before since there will be fewer assembly steps without having to put in a fuel system and all the drivetrain components," said Abuelsamid. "The body and paint shops will also need to be heavily revamped and they will also have to figure out how to handle some very different bodies at the same time."

The plant will also likely have a battery assembly line where cells and modules are assembled into the packs before they go to final assembly. And, since D-Ham will be a battery-vehicle-only factory, some of the hazardous material handling for fuels and lubricants can be simplified, Abuelsamid said.

A plant where a neighborhood stood

GM opened the factory in 1985 and it has built about 4 million vehicles there since. It's had such nameplates as the Oldsmobile Toronado and Trofeo, Pontiac Bonneville, Buick LeSabre, the Cadillac Eldorado, DeVille and Seville and the Chevrolet Volt.

The plant is sometimes called Poletown because GM built it on the site of a Polish immigrant community straddling the Detroit-Hamtramck border. In fact, the hulking facility spans the two cities. The body shop is in Hamtramck and the general assembly belongs to Detroit.

The fact that D-Ham will keep humming is significant given the sacrifice made for it to exist. The 300 acres D-Ham sits on was home to a Polish neighborhood with about 4,000 residents, more than 1,000 houses, several Catholic churches and more than 100 businesses. It all stood in the way of GM's plant and in a bold and hotly contested move, government leaders used eminent domain powers to seize and raze those properties on GM’s behalf.

It made national news and stirred up many protests included a nearly monthlong sit-in at the neighborhood's Immaculate Conception Church that police eventually broke up with arrests.

EV volume

D-Ham has capacity to build 160,000 vehicles, said Jeff Schuster, president of Americas Operations and Global Vehicle Forecasts for LMC Automotive. But LMC forecasts that the redesigned plant won't build close to that volume.

Last year, GM built 34,344 vehicles at the plant, Schuster said. LMC expects a slow volume ramp-up, with eventually six electric vehicle models to be built there.

But given weak demand for electric cars and many new entries, Schuster said volume will be less than 25,000 in 2023 and around 50,000 by 2024.

If the Origin has much stronger fleet testing volume than LMC anticipates, Schuster said, production could be higher than 50,000.

GM declined to comment on the plant's future production, but spokesman Jim Cain said, "Any forecast is purely guesswork because we have yet to share the depth and breadth of our strategy to transform the Detroit-Hamtramck plant, fully leverage our EV expertise and scale, and accelerate our drive toward an all-electric future."

Divided households

GM's big bet on EVs stirs up mixed emotions in D-Ham workers. They're excited, but apprehensive.

During the 40-day nationwide strike against GM last fall, the UAW not only secured a contract that kept D-Ham open, but also protected plant jobs during renovations. The workers will have employment within GM until the plant reopens, said Terry Dittes, UAW vice president of the GM department.

"For UAW members, Hamtramck, Detroit and the surrounding community, these negotiated product investments have created job security and a bright future for UAW Hamtramck members," said Dittes.

About 130 hourly workers will retire from the plant effective Feb. 29, said UAW Local 22's Plater. There are also about 70 skilled-trades employees who will continue to work at D-Ham during GM's retooling process.

One of those is Clayton Jackson, 59, a millwright who works overnights repairing machinery. For him, the biggest adjustment will be switching to the day shift. But many of his colleagues remain anxious, he said.

"We don't know what to expect," said Jackson. "You're working in a plant that was intended to close, then you find out it's staying open. They haven't really mapped out the plan to us."

Gary Henrion, 47, is another skilled-trades worker. He is asking GM to transfer him to Flint Assembly. He and his wife moved to Holly, about 15 miles south of Flint, last year when she was transferred from D-Ham to Flint Assembly.

"I'm hoping I get the transfer," said Henrion, who has 23 years seniority with GM. "But I'm used to disappointment from GM. If I get to go to Flint, great. If not, I'll still make the 50-minute drive to D-Ham and I'll still have a job."

Like Henrion, most of the more than 600 general assembly workers are eagerly watching their email or Federal Express deliveries for word from GM on where their next assignment will be. GM is expected to start sending out offers, which are based on seniority, by the end of the month.

Most of the workers will get two options.

The full relocation package: A worker agrees to transfer to another GM plant permanently and receives up to $30,000 to relocate.

A transitional package: A worker agrees to transfer to another GM plant until Detroit-Hamtramck's upgrades are complete and the worker can return there. The worker would receive $5,000 for relocation costs.

Decision and indecision

Omar Guevara, 45, who has worked on the assembly line at D-Ham since 1997, knows what he wants to do.

"I'm not looking to come back, I've done my time here," said Guevara, whose job is to do quality checks. He works on the assembly line where the engine and transmission are married to the vehicle body.

Similar to Henrion, Guevara and his wife bought a home in Clio in October after she was transferred earlier in the year from D-Ham to Flint Assembly. Clio is about 10 miles north of Flint. So Guevara drives 90 minutes to D-Ham daily to work a 10-hour shift that starts at 6 A.M.

Guevara has asked to transfer to Flint and he is confident he'll get it because there are about 250 openings and he has high seniority. Also, "everybody here in the plant wants to go to Toledo (Powertrain) and Romulus (Engine) because they live in Detroit or Downriver. High seniority people are retiring and taking $60,000 to get out," he said, referring to a retirement package.

But the money isn't enough to force a decision for some. Bernie DeVold, 67, is a quality inspector on the assembly line. His job is to check the exterior for flaws and make sure it fits together before the tires go on.

DeVold has worked for GM for 39 years. Just 10 days before D-Ham was set to be idled, DeVold was undecided on whether to retire or taking a transfer.

"This is the best plant I've ever worked at," said DeVold. "The people are great and management here is great."

Together again

The plant, which about 20 years ago had more than 3,500 workers, Henrion said, only has a few hundred working day shift now.

The floor was busy, but sedate. The machines hummed, interrupted periodically by a cacophony of artificial tunes echoing lullaby-like chimes to the theme from Star Wars and everything in between. The songs sound any time a worker pulls a yellow cord above the line seeking a supervisor. Each line has its own unique tune so the supervisor knows where to go.

And each line is populated with people who've worked together for so long and so closely that many consider each other family. That's what makes the end of production for internal combustion engine vehicles so bittersweet, said Local 22's Plater.

"It's good that the plant will stay open and it'll blossom. But, at the same time, people have to go somewhere else and that's a strain for them," Plater said.

Plater will stay at D-Ham, where he has worked for 18 years, during the retooling period. But he said he is sad to see his members leave, admitting, "I'll miss them."

"When it reopens, there'll be a lot of different people," said Plater, after discussing the yellow steel beam sporting the names and dates of those who've passed through the plant over the years. "It's like a family here. I'm hoping they choose to come back and we can all be together again."

Contact Jamie L. LaReau: 313-222-2149 or jlareau@freepress.com. Follow her on Twitter @jlareauan. Read more on General Motors and sign up for our autos newsletter.