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GM Executive Calls Out Nissan Leaf, Talks About Spring Hill


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GM Executive Calls Out Nissan Leaf, Talks About Spring Hill

William Maley - Editor/Reporter - CheersandGears.com

May 6, 2011

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Mark Reuss, General Motors North America president, recently did an interview with the Nashville Business Journal talking about GM's future, the Volt, and other things. When Reuss was asked about the Leaf, he showed no mercy.

“(The Leaf) has a finite range and requires infrastructure and charging to run it, where the Volt is really an extended-range electric vehicle. The Volt can really be the only car you own. You better be living within a certain range for the Leaf. … It’s a lot different market, a lot different car and a completely different driver," Reuss said. “I’m not sure if I’d put the leaf in the hands of my three kids. Say, what if they can’t charge it? What if they get to school and can’t charge it? The Leaf is a single-purpose car.”

The paper also asked Reuss what was going to happen to Spring Hill plant. The plant which built the Chevrolet Traverse till 2009 has been on stand by for vehicle production. Currently, the plant employs 1,000 workers in engine manufacturing and other operations.

“When the economy dictates stability on changing our break-even point as a company for expansion … then, Spring Hill is at the top of the list,” Reuss said. “It’s a world-class production facility sitting there. The only thing that has to happen is that we convert the body shop to make a specific model.”

Source: Nashville Business Journal

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Honesty is always refreshing. I'm just glad the honest ones are in a position of authority to give honest answers.

The Leaf isn't for everyone, but it will probably work for the majority of people. When one considers that the Volt production will represent well under 0.1% of the market this year and well under 1% for many years to come you start to realize how "honest" it is for GM to try to convince the majority that the Leaf won't work for them. I understand that he is spinning the Volt's strengths and I am not going to fault him for that. But we should recognize that it is more "fear mongering" than "honest".

e.g. "The Leaf is a single-purpose car": I guess if a car is 'single-purpose' then satisfying 80+% of commuters daily needs is a good one. This is about as honest as me saying that the Volt is 'single-purpose' because it only has room for four people and the Leaf has room for five.

GM is probably a little bit worried that Nissan is finally starting to ship the Leaf to NA and last month it outsold the Volt.

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If you need more than the Leaf's range, the Volt doesn't make sense either. For each mile driven in 37-mpg extended-range mode, the Volt loses its advantage over a conventional 50-mpg hybrid like the Prius, until you reach a point where it's actually cheaper to drive the no-plug car. Ironically, the Prius overtakes the Volt in cost-per-mile after 73 miles, exactly the EPA range of the Leaf.

To travel 73 miles...

Volt

35 miles EV = 13.4 kWh (amt. of energy drawn from wall to recharge with 120v) * 12 cents (national electricity price) = $1.61

38 miles ICE = 1.03 gal (@ 37 mpg combined) * $4.29 (premium unleaded) = $4.42

TOTAL = $6.03

Prius

73 miles ICE = 1.46 gal (@ 50 mpg combined) * $4.09 (regular unleaded) = $5.97

TOTAL = $5.97

So, sure, you have no range anxiety, but you end up paying the same for fuel as a conventional car.

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The story in Autoweek points out it's all about numbers. They drove a leaf on their first long term test and found it used more power and ended up on a flat bed truck.

The same issue showed where they drove a Volt to the U.P. of Michigan and ran it out of power and gas. Once the gas was gone it would go back to electric to get you to a gas station if you were not in the middle of no where.

The whole point of the Volt vs the Leaf is the Volt is a car that will take you anywhere and you could live with as a single car. You also could drive it to work every day through the week and never be on gas. The Leaf on the other had has limited range and would limit you life unless you have a second car.

The Leaf is good if you live in the city and only short ranged it. The Volt is good for short range but you can go anywhere you andt and take less time to charge it.

I still would love to see GM challange Nissan to a trip across country and show how long it takes each car to make the trip.

The Volt is not perfect and some other cars still will be better options. But the point of the first gen car is to get it on the market and accepted. It will improve much faster as a production vs a prototype. Companies invest more money in technology for car in production and on the market vs cars that could or should be built.

Right now till there is a better battery the Volt is a car the average person could live with and have a interest.

The greatest issue is cost. It too will come down with each and every genereation just as any new technology.

Nissan has range anxiety themselves as they hate it when ever the range and charge times come into play. This is why before the car came out they has stated they may give loaners to the owners if they really have to go anywhere. That is no way to build a car.

Edited by hyperv6
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If you need more than the Leaf's range, the Volt doesn't make sense either. For each mile driven in 37-mpg extended-range mode, the Volt loses its advantage over a conventional 50-mpg hybrid like the Prius, until you reach a point where it's actually cheaper to drive the no-plug car. Ironically, the Prius overtakes the Volt in cost-per-mile after 73 miles, exactly the EPA range of the Leaf.

To travel 73 miles...

Volt

35 miles EV = 13.4 kWh (amt. of energy drawn from wall to recharge with 120v) * 12 cents (national electricity price) = $1.61

38 miles ICE = 1.03 gal (@ 37 mpg combined) * $4.29 (premium unleaded) = $4.42

TOTAL = $6.03

Prius

73 miles ICE = 1.46 gal (@ 50 mpg combined) * $4.09 (regular unleaded) = $5.97

TOTAL = $5.97

So, sure, you have no range anxiety, but you end up paying the same for fuel as a conventional car.

Except there is clearly still an issue with the EPA test for a vehicle like the Volt. Highway travel for me in extended range mode yielded over 60mpg and I wasn't being gentle on it.

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If you need more than the Leaf's range, the Volt doesn't make sense either. For each mile driven in 37-mpg extended-range mode, the Volt loses its advantage over a conventional 50-mpg hybrid like the Prius, until you reach a point where it's actually cheaper to drive the no-plug car. Ironically, the Prius overtakes the Volt in cost-per-mile after 73 miles, exactly the EPA range of the Leaf.

To travel 73 miles...

Volt

35 miles EV = 13.4 kWh (amt. of energy drawn from wall to recharge with 120v) * 12 cents (national electricity price) = $1.61

38 miles ICE = 1.03 gal (@ 37 mpg combined) * $4.29 (premium unleaded) = $4.42

TOTAL = $6.03

Prius

73 miles ICE = 1.46 gal (@ 50 mpg combined) * $4.09 (regular unleaded) = $5.97

TOTAL = $5.97

So, sure, you have no range anxiety, but you end up paying the same for fuel as a conventional car.

Except there is clearly still an issue with the EPA test for a vehicle like the Volt. Highway travel for me in extended range mode yielded over 60mpg and I wasn't being gentle on it.

No offense, but I doubt it. Perhaps you were looking at average MPG including the miles driven with electricity?

If you're not "gentle on it" you should get less than the optimistic EPA 40 mpg: http://blogs.insideline.com/roadtests/2011/05/2011-chevy-volt-la-to-sf-and-back-part-2.html

Don't get me wrong - I like the Volt. But for it to make sense on a cost-per-mile or efficiency basis, its "range" is just as limited as the Leaf's. Perhaps Ford's Energi plug-in hybrid models will represent more of a "sweet spot" in terms of EV range and post-EV fuel consumption.

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If you need more than the Leaf's range, the Volt doesn't make sense either. For each mile driven in 37-mpg extended-range mode, the Volt loses its advantage over a conventional 50-mpg hybrid like the Prius, until you reach a point where it's actually cheaper to drive the no-plug car. Ironically, the Prius overtakes the Volt in cost-per-mile after 73 miles, exactly the EPA range of the Leaf.

To travel 73 miles...

Volt

35 miles EV = 13.4 kWh (amt. of energy drawn from wall to recharge with 120v) * 12 cents (national electricity price) = $1.61

38 miles ICE = 1.03 gal (@ 37 mpg combined) * $4.29 (premium unleaded) = $4.42

TOTAL = $6.03

Prius

73 miles ICE = 1.46 gal (@ 50 mpg combined) * $4.09 (regular unleaded) = $5.97

TOTAL = $5.97

So, sure, you have no range anxiety, but you end up paying the same for fuel as a conventional car.

Except there is clearly still an issue with the EPA test for a vehicle like the Volt. Highway travel for me in extended range mode yielded over 60mpg and I wasn't being gentle on it.

No offense, but I doubt it. Perhaps you were looking at average MPG including the miles driven with electricity?

If you're not "gentle on it" you should get less than the optimistic EPA 40 mpg: http://blogs.insidel...ack-part-2.html

Don't get me wrong - I like the Volt. But for it to make sense on a cost-per-mile or efficiency basis, its "range" is just as limited as the Leaf's. Perhaps Ford's Energi plug-in hybrid models will represent more of a "sweet spot" in terms of EV range and post-EV fuel consumption.

There were no miles driven on battery. It was delivered to me with 0 EV range. I reset the mileage indicator as I always do, and I was off.

edit: reading that blog post makes me wonder what he was doing. 30 mpg? How was he driving it to get that?

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The Leaf isn't for everyone, but it will probably work for the majority of people.

With how much extra expense and inconvenience? It's not going to work as a primary car for the majority of people, that much is clear. (At least not without involving loaner or rental cars on occasion, which is more inconvenience than most are willing to deal with.)

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I still would love to see GM challange Nissan to a trip across country and show how long it takes each car to make the trip.

Oooh, this would make for a good Top Gear challenge. Send Hamster, Slow, and Jezza back to the States and give Jezza the Volt, Hamster the Leaf, and Slow the Prius (or an Insight) and see which car would make it from DC to LA first. They're all three sort of boring cars, but the challenge would be entertaining.

Someone get the BBC on the phone. I really would like to see this.

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I still would love to see GM challange Nissan to a trip across country and show how long it takes each car to make the trip.

Oooh, this would make for a good Top Gear challenge. Send Hamster, Slow, and Jezza back to the States and give Jezza the Volt, Hamster the Leaf, and Slow the Prius (or an Insight) and see which car would make it from DC to LA first. They're all three sort of boring cars, but the challenge would be entertaining.

Someone get the BBC on the phone. I really would like to see this.

I like it but Slow would have to be in the Leaf on a flatbed. He needs to be in the car that would take a month to make it.

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FYI, Here in Seattle the Leaf is all the rage with the hard core Green everything people as it has sold into the rich pretty well. Woodinville WA has a ton on Leaf's being driven, but in truth, even though we do not get the cold snowy winters around town only up in the mountains 30 min away, the bulk of the people say that the car operates best if kept in a garage overnight compared to being left outside in the cold and drizzle that makes up the Greater Seattle Area.

At 6'6" tall I tried to fit into the Leaf they had on display for people to check out at Bellevue Mall and I could not fit comfy in the car. No matter what I have done to the chair, I could not sit up straight, hit my head and I hate being reclined in a car to drive it. The Nissan sales rep said the care was designed for the majority of Americans who average 5'8" to 5'10" tall.

Clearly not a real care for America. Pass on this POS and stay with my full size SUV! :D

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Yes the Leaf is single purpose, but it still fits the needs of many drivers. And electricity is more readily available than gasoline, so I don't get the fear of not being able to recharge it. And really Ruess should be concerned with an Aveo and Impala that are pathetic, a Corvette that doesn't sell, and full size SUVs with sales dropping at a 20% rate.

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Yes the Leaf is single purpose, but it still fits the needs of many drivers. And electricity is more readily available than gasoline, so I don't get the fear of not being able to recharge it. And really Ruess should be concerned with an Aveo and Impala that are pathetic, a Corvette that doesn't sell, and full size SUVs with sales dropping at a 20% rate.

Few people could live with the Leaf as an only car. Most people have lives at are more 50 miles from home.

Second electric is all around us but few places are able to recharge a leaf just anywhere. Yes there are plans to put charging stations in but the issues is many will not install them till there are more cars and with no charging stations few people are willing to buy the cars. The Chicken and the Egg Principal is in play here.

The story in Autoweek points out that when you leave home you have to figure out your miles you need and see what you have. Then you need to monitor your usage as the 75 miles you left with may not go 50 miles if you are driving hard or if the weather is cold. They had this very issue. They then tried to make it to a known charging station and could not make it. So they went to a electican they knew and tried to hook up a charge when it fried the cords they used to get from the outlet to the car. Even then the time it would have taken to charge would have put them into the next day at the least. In the end it ended up on the Flatbed of shame as they called it.

I know there are people out there that live close to work and could use this for short trips but they are in the great minority. Most people who will have these will have at leat one or two other vehicles to drive if needed and that is fine. As batteries get better and charging faster this could be a vehicle for all needs. The bottom line is the Volt is a car that any average driver can own and live with as a single car the leaf is not. The Volt gives you the short run all electric deal for daily commutes but will fill in for the car that you can go see grandma in San Deigo and still get home back in Orange County that night. Heck there are many in LA that could not even get to work and home in a leaf as they drive more then 50 Miles one way a day just into downtown.

Neither the Leaf or the Volt are the final solution to the gas issue. The Leaf is just a little early and is need of better power cells while the Volt is a compromise to make a electric car the average buyer could live with. Both will improve and evolve in time but we are years from either having a system that could even think might dominate the gas powered car. It is nice to have these as an option but that is all they are for now and the Volt is the best option at this point for the normal car owner. Yes this title will change in time many times.

As for Mark he is doing his job. If he is to lead GM he needs to speak out on why you should buy his products. He is a salesman just as much as he is anything els. He is still new to the job and has to learn a few things just as Bill Ford and Allen Mually did over at Ford. Speaking out is a two edged sword as it can help you a lot but it also can back fire with a poor choice of words or comments. If care is used in the statment and if they are spoken from the heart he will do fine. He needs to just speak how he really feels and be honest. Like Lutz if you agreed with him or not you knew where he stood and how he felt will little.

As for his issues at GM I think he has most well on their way to be delt with. The Aveo is gone in witht he Sonic, The new Impala is well on the way, two new Vettes are being worked on at the same time. GM is cutting production on the slower large trucks and is adding better MPG SUV'S to the small SUV's they already have. The only hold up is time right now as many of these programs got started once they got the loans. The Goverment could money buy they could not loan them time too. If he can keep the profits up as they have been he can say what ever he wants and people will listen.

Edited by hyperv6
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Yes the Leaf is single purpose, but it still fits the needs of many drivers. And electricity is more readily available than gasoline, so I don't get the fear of not being able to recharge it. And really Ruess should be concerned with an Aveo and Impala that are pathetic, a Corvette that doesn't sell, and full size SUVs with sales dropping at a 20% rate.

Part of the fear comes easily enough, have you ever forgotten to plug in your cell phone when you get home? If you forget to plug in the Leaf right away, you may not be able to drive the miles you need to the next day.

While it's difficult to dispute your point about the Impala, the Aveo is being replaced by the Sonic, which should continue the string of product successes. It's a great looking car, with tons of standard and optional features. Also, given that the Corvette is the highest volume in the high sport segment, compared to the Z4, 911, and the Cayman, it's hard to say it doesn't sell.

While sales of full size SUVs are surely down, Chevrolet still leads that segment with Tahoe, Suburban and Avalanche head and shoulders above everyone else, and it is still a very profitable segment as well.

The Leaf is an impressive car, but it does have limitations. At our dealership here in Phoenix, we have a Volt we brought over from San Diego. So far, for the life of the car, having driven more than 2200 miles, it has averaged 129 miles per gallon.

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And electricity is more readily available than gasoline, so I don't get the fear of not being able to recharge it.

It is? Yes, electricity runs all over the place, but if you think you're going to be allowed to just plug your car in anywhere at a whim, you're dreaming. Plugging in something like a laptop into someone's outlet isn't going to make a noticeable change in a person's or business' electric bill, but plugging in a car would. So while electricity is readily available, finding someone to let you plug in might be much more hit & miss. If I were an employer, I'd be choosing between charging employees with electric cars to charge, not allowing it, or perhaps allowing them to charge free & making a big PR deal over it. There's no guarantee that someone who drives their car to work can charge it there, and as long as public charging stations are few & far between, that's an issue as well. And charging time is still a huge issue.

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Major Metros at first, but there is more than one major ubiquitous retailer that will be rolling out charging spots nationwide.

If you are speaking of Best Buys I know about their plans. They will hit the big metro areas but it will take time to hit many other areas of the country. Heck there are plenty of places that still struggle with Cell Phone covereage.

Besides these charging spots will not be in great numbers and will service some areas fine but in areas with many EV's they will be tied up and prevent many from plugging in. Lets face it a one to two hour charge at the Mall is not going to give the Leaf much.

It will still come down to if people will invest in the home charging stations that will provide a faster full charge so they will be able to leave with a full charge in the AM. Many will invest but others will not. Usage during the day will never be a constant value so people will have to be respoinsible enough to keep up with the usage rate of the car and conditions it is used. I know some will handle this well while other today can't even keep gas in their tank and enough air in the tires. This is a car with zero error system as you can not just walk to the corner to get a gallon of voltage to correct your error.

It would have been nice if the goverment took a lot of the wasted stimulas money and invested it in infrasturture for charging stations and even better or more Hydrogen fueling stations. If they want to promote alturnitive fuels they need to improve the support systems for said vehicles. Few in the private industry want to invest in a time where the economy slow and money is tight.

This is just a deal that is going to take time to grow in many ways. Consumer interest, Technology, Infrastructure, etc. Even the original gas cars took time to take hold of the market in a way it had little compromise. The first gas cars were nothing more than a expensive novelty when they were first on the market.

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Best Buy is just one. The next largest (larger?) rhymes with Grown Cheapo. There is also at least one large restaurant chain that I know of.

But how long will you really remain plugged into these stations? Most people other than my Mother Inlaw can not find ways nor do they want to spend 4-5 hours at any store.

Lets face it Grown Cheapo is one of the last places that would be a good place to plug in. Most shoppers there are men. They go in buy their nails, glue and Monkey Butt powder and leave in 20 min with 10 of these min waiting in line or for them to fix the self check out. They get in, they get what they need and they get out. Most have a project to do or one half torn apart and just want to get the work done.

Until they solve the faster charge they are all just moral builders. In time they will matter but their time is still a little ways off yet.

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A little less fake swagger and a little more doing please. Should we ask Ghosen what he thinks about the new Chevy Mini-van that will compete with the new Quest?

Even if GM built the best minivan on the market it would be a struggle to sell in this segment. Only Honda has been able to make a dent in this market and it has only been a dent. The Quest for better or worse will just be another that will sell ok with little impact.

People no matter how good or bad think Chrysler and Dodge in this segment, few even with better products have been able to change shopper minds.

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On the fast charge cycle, an hour is a quarter charge. Lots of people can blow an hour in these stores. Granted... most of these are just PR stunts, but it's a start.

That is just it PR and marketing. Everyone wants to be painted green today.

Just look at all the companies sporting green colors in their marketing. Banks, insurance companies etc they all want to be that ugly green. They have little impact on the enviroment but they want to push the green agenda anyway they can.

The real need right now is for the companies to come together for an agreed level 3 charging system. Then they need to find a way to keep it from degrading the batteries as if the level 3 is used often the battery will lose capacity vs normal level 2 charges.

There is a lot of technology that needs to be worked as as well as Politics.

There is a level 4 being worked on but they still have not even got the issues settled on level 3 yet. The SAE needs to get everyone togther to set a standard agreed by all. This is similar to the nut and bolt SAE standard 100 years ago. This is something that will help shape the future and right now it is a pissing match with many MFG.

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Lets face it Grown Cheapo is one of the last places that would be a good place to plug in. Most shoppers there are men. They go in buy their nails, glue and Monkey Butt powder and leave in 20 min with 10 of these min waiting in line or for them to fix the self check out. They get in, they get what they need and they get out. Most have a project to do or one half torn apart and just want to get the work done.

Agreed... they really should be putting units in places where women shop... or metrosexuals... for hours... places that rhyme with Beer None... Bled, Wrath and Abscond... Eye-Pea-Ahh... or Rome Woods. I kind of thing the Leaf matches their demographics anyway.

(That list is actually my GF's favorite places that I hate... yet, so far the Leaf does nothing for her.)

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Lets face it Grown Cheapo is one of the last places that would be a good place to plug in. Most shoppers there are men. They go in buy their nails, glue and Monkey Butt powder and leave in 20 min with 10 of these min waiting in line or for them to fix the self check out. They get in, they get what they need and they get out. Most have a project to do or one half torn apart and just want to get the work done.

Agreed... they really should be putting units in places where women shop... or metrosexuals... for hours... places that rhyme with Beer None... Bled, Wrath and Abscond... Eye-Pea-Ahh... or Rome Woods. I kind of thing the Leaf matches their demographics anyway.

(That list is actually my GF's favorite places that I hate... yet, so far the Leaf does nothing for her.)

You could put chargers at bars for the guys but then they could not drive home after a proper charge. LOL!

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  • 1 month later...

So many are avoiding the big question, COST! What will people's electric bills be? How much fossil fuel and coal will be used at power plants to generate more electricty for grids? How much to charge at a station? We still get electric company bills, and it's not free! No way will Best buy "give away" electricity.

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now just imagine if the companies worked on compatible battiries and you just stopped and switched out batteries, kinda like propane here, you bring in an empty one, they take it fill it and they give you a different full one.

Edited by CanadianBacon94
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So many are avoiding the big question, COST! What will people's electric bills be? How much fossil fuel and coal will be used at power plants to generate more electricty for grids? How much to charge at a station? We still get electric company bills, and it's not free! No way will Best buy "give away" electricity.

I wouldn't be surprised if early on they did give it away, until it became a really notable cost to them. Early on when actual use of the chargers is semi-rare, they may just take the hit for the green image. But your point is still valid, electricity isn't free, and if electric cars become more than a tiny fad, there won't be many/any places to just plug in without a charge for your charge. Question becomes what the mark-up might be. Just cuz the electric company might charge, say, 5 cents per kwh, doesn't mean that a charging station will.

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So many are avoiding the big question, COST! What will people's electric bills be? How much fossil fuel and coal will be used at power plants to generate more electricty for grids? How much to charge at a station? We still get electric company bills, and it's not free! No way will Best buy "give away" electricity.

In my area, you'd be looking at a $40 a month increase in your electricity bill. If you fall within the "average commuter" guidelines of the Volt and rarely use gasoline, that $40 would be substantially offset by gas cost savings.

Best Buy will probably be doing a "free charge with purchase" type of deal. But even if they charge for a charge, it wouldn't cost more than a couple bucks. The Volt can only take 3.5 KW an hour of charging. Even at 15 cents a KWH, Best Buy is only looking at a 52.5 cent cost for an hour of charging. (that is only counting the energy costs, the installation of the charger is more of course)

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  • 1 month later...

something is going to happen at Spring Hill soon. Because if you look at GM's Career site they are hiring for paint shop engineers. and additional production supervisors. I heard a rumor that Caprice production could be shifted to North America..

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something is going to happen at Spring Hill soon. Because if you look at GM's Career site they are hiring for paint shop engineers. and additional production supervisors. I heard a rumor that Caprice production could be shifted to North America..

Good to hear about the hiring. It's an excellent plant, and would be a shame if it sat unused much longer.

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