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by Steven Loveday, Inside EVs
As was recently reported, General Motors decided to idle its Orion (MI) Assembly plant while it moves forward with the massive Chevy Bolt EV and Bolt EUV recall.
GM is recalling every Bolt ever built due to a handful of fires. Now, the automaker has confirmed the factory will remain idle until at least Sept. 24.
According to a report by Autoblog, GM is working alongside battery supplier LG Chem to figure out exactly how to progress with the recall. Until some decisions are made, the plant will not continue producing the electric hatchback or crossover.
GM has made it clear it has no intention to produce new Bolt EVs or EUVs―nor will it replace current vehicles―prior to having the utmost confidence the newly updated battery packs are safe.
Of course, GM is looking to LG Chem to provide the necessary information to allow production to continue. The battery maker is expected to prove without a doubt the updated packs are defect-free and not prone to fire risk.
Thus far, the situation with the Bolt has cost GM nearly $1 billion, and it will likely cost a whole lot more as everything progresses. Autoblog writes due to “GM’s lack of confidence in its supplier, it seems unlikely that the work stoppage will extend only through the end of September.”
This all makes perfect sense since GM has been dealing with this for some time, and a previous fix didn’t work. If the automaker goes to great lengths to replace the battery packs in every car, and more fires occur thereafter, it could prove to be a devastating blow.
This is a developing story. We’ll update this article or provide another once more information becomes available.
by Auto Remarketing Staff
So much for an extended reprieve from soaring wholesale prices.
Black Book reported Sept. 7 its Used Vehicle Retention Index for August nearly hit a new record for the second time in the past three months.
The August reading turned out to be the second-highest Black Book has recorded, as the index increased 3.9 points or 2.4% from July to come in at 165.7 points.
Analysts noted the all-time high came in June at 166.0. Still the August index reading is 28.5% above where it was at the same time last year.
“After a brief break in July, wholesale prices started to increase at the end of August as the industry came to the realization that the new inventory shortage will worsen in the fall,” Black Book Chief Data Science Officer Alex Yurchenko said in a news release. “Dealers accelerated the acquisition of used inventory in anticipation of emptier new vehicle lots.
“In addition to the chip shortage, Hurricane Ida flooded large portions of the Southeast and Northeast, potentially aggravating inventory problems. We anticipate prices to remain strong at least through October,” continued Yurchenko, who is one of the scores of experts and executives scheduled to appear during Used Car Week, which begins on Nov. 15 at the Red Rock Resort in Las Vegas.
The Black Book Used Vehicle Retention Index is calculated using Black Book’s published wholesale average value on 2- to 6-year-old used vehicles, as percent of original typically equipped MSRP. It is weighted based on registration volume and adjusted for seasonality, vehicle age, mileage and condition.
To obtain a copy of the latest Black Book Wholesale Value Index, go to this website.
