MT Magazine November/December 2022

NOVEMBER/DECEMBER 2022

FEATURE STORY

15

combustion engine program and GM’s intentions to be carbon neutral in its products and operations by 2040 underscore the importance of the multibillion-dollar investment in electric vehicles. (Keep in mind that Ford Motor has completely restructured its organization, with the primary elements being Ford Model e division, which will be dedicated to electric vehicles, and Ford Blue, the mission of which is to build out the company’s ICE vehicles while serving “as the engine that supports and powers Ford’s future” – it will be a source of funding for the electric side of the business. Ford is investing $50 billion in EVs through 2026.) What’s more, with developments like the state of California – which accounts for about one-eighth of all new car sales – banning the sale of new ICE vehicles after 2035, new engine programs are not particularly fiduciarily responsible. And realize that all global vehicle manufacturers are facing the same situation. For those that have significant sales in the European Union, know that although there are some carve-outs and exceptions, new ICE sales are to be banned there in 2035 as well.

All of which is to point out that Barra is an executive steeped in manufacturing. She not only knows what line rates are but what makes them happen, from servo drives to skilled trades. Under Barra’s direction, GM has made or announced the following investments in order to achieve the capacity to produce 1 million electric vehicles in North America by 2025: • $2.2 billion, Factory ZERO, Detroit/Hamtramck • $4 billion, Orion Assembly, Orion Township, Michigan • $2 billion, Spring Hill Manufacturing, Spring Hill, Tennessee • $154 million, Lockport Components, Lockport, New York • $491 million, Marion Metal Center, Marion, Indiana And with partner LG Energy Solution:

• $2.6 billion, Ultium Cells, Lansing, Michigan • $2.3 billion, Ultium Cells, Spring Hill, Tennessee • $2.3 billion, Ultium Cells, Warren, Ohio In her letter to shareholders reviewing 2021,

Barra wrote, “As we move through the year [2022], the massive scale of our transformation and the value it will deliver will become even more clear.” That GM is investing in

In the U.K. a ban will go into effect in 2030. In fact, countries from Norway to the Netherlands, South Korea to Singapore, have future ICE bans on their books. So, what does this mean? For one thing, the amount of

manufacturing cannot be disputed. Arguably this is greater than a generational spend. But what must be kept in mind about this is that the

machining that is associated with making engines – milling, drilling, turning, honing, broaching, grinding, etc. – and all of the components that constitute them – valves, cams, cranks, blocks, heads, pistons, etc. – is going to decrease. What’s more, the nature of transmissions for electric vehicles is entirely simpler than the

investment in electric vehicles is coming from somewhere, and one part of that “somewhere” is the internal combustion engine. The multi-decade life of an internal