Musk Says Tesla Would Consider Buying Shuttered GM Factories

DEC 7 2018 BY MARK KANE 93

Here is the idea: purchase a Volt plant and produce the Model V

The question of what to do with General Motors’ plants scheduled for close arose from day one. Some speculated that maybe Tesla could purchase some of them to produce more electric cars.

In one of the most recent interviews, Elon Musk said that it’s possible that Tesla could take over some of GM’s plant/plants. It at least opens the doors for talks.

There could be other options. Just like how Rivian acquired the Mitsubishi plant. Some other new players might be interested. Maybe some Chinese companies would like to expand into the U.S.?

Categories: Chevrolet, Tesla

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93 Comments on "Musk Says Tesla Would Consider Buying Shuttered GM Factories"

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Roy_H

Plants? Plural? I could see buying one plant, after all Tesla still has Model Y, Tesla Semi-Truck, Pickup truck, and Roadster 2 on the future production map. Is Chevy dumping the Corvette line? Maybe convert that for Roadster 2? But it all makes little sense timing wise, as Deliveries for everything except the pickup are only 2 years away and I would think that production lines need to be in the building now in order to meet that date.

Gazz

The timing could not be better.

Leptoquark

What would make it sail would be if Musk very publically gave hiring priority to laid off auto workers. He’d really be a hero then.

Derek

As long as they remain non-union.

Clive

Correct Gazz !!!

-Tesla doesn’t need to have unions.

And they’re completely unnecessary.

SJC

Unions helped build the middle class, the one that is eroding now.

Steven

Clive, what color is the sky in the pretty little world of yours?

Do you really think we would have the five day work week if not for Unions?
Do you really think we would have eight hour work days, mandated breakes and lunch time if not for Unions?
Advancement through seniority rather than favoritism?
Benefits?

Do you really think through the goodness of their hearts, members of the “C-suite” would redirect profits to the workers, rather than the shareholders?

Whatever you’re smoking, give me some.

dgate

I would guess he means Tesla and the way its factory is run.

Clive

I don’t care what colour the sky is I make the best out of everything in my world.

Clearly Tesla is doing perfectly fine with their business model without any archaic unions.

Rouge1

Not if they lose goverment subsidies. Testla makes cars for the rich that the poor pay for and you call that a good business model?

antrik

Actually, for Model Y, I think it’s a bit late now… They need to be certain of whatever location they choose right about now, rather than leaving it in limbo of ongoing negotiations for months.

theflew

Chevy isn’t dumping the Corvette, Malibu, Sonic, Bolt, etc… So they will still have some cars. Also there is an assumption they would get the plant at a bargin basement price like Freemont. I would assume if GM was to sell it would be in the billions.

Robb Stark

GM doesn’t want to sell to Tesla at bargain basement prices, since they are not currently in financial straits.

If Elon promised to hire all the laid off workers in a factory town the local government might use eminent domain to buy the factory regardless of GM wishes to then sell to Tesla.

theflew

A lot of wishful thinking going on here. Given these are both modern plants all GM is doing is looking for a better deal on taxes. I guarantee is the 11th hour Ohio and Michigan will give GM some tax benefit and GM will magically announce some future product at the plants.

Will

Nope. Their care don’t sale just like Ford. CNBC had a great video about Ford. Their CEO might not last until end of 1st Q

ffbj

I don’t know that seems to be wishful thinking too.
What about their transmission plants, is some deal at the last minute going pop up, as some new product is made there. I don’t think so. You see these jobs are going boys, and they ain’t comin’ back, unless it’s to make electric cars, in your hometown:
https://www.youtube.com/watch?v=77gKSp8WoRg.

Elliot Geno

Probably.

Will

He can have Trump force sale the plant to Tesla for workers. National Security-electoral college votes.

Pushmi-Pullyu

It’s amazing that some of the Orange One’s supporters seem to think he’s a dictator who isn’t constrained by the Constitution or separation of powers or States’ rights… or by the law in general.

Kinda like the Orange One himself. 🙁

esto_perpetua

No, the Orange cannot dictate. Only the Brown could do that.

esto_perpetua

These laid off workers are Union. Do you think the Union will allow the takeover of the plant with non-Union workers or that Tesla will allow unionization? Either possibility is very unlikely.

Clive

Any new deal moving forward is not controlled by the unions. New Employees are just that.

Pushmi-Pullyu

Any State in which unions are strong have State laws strongly protecting Union rights. Tesla can’t just ignore that; look at all the problems it has and still is having with UAW activism and propaganda at its Fremont, California plant.

It’s pretty easy to guess that Tesla will avoid opening another auto assembly plant in any State with strong union protections.

Clive

Elon Musk is not stupid of course he would steer around any stupid state that would mandate something like that that would bring that much of a workforce into the general area including tax benefit to the state.

Maybe the wind up in Canada where they’d be more than happy to have Tesla build there.

Will

Workers will jump over to get jobs. Why you think Right to Work states became popular

Hauer

If GM indeed closes the factories the unions are welcome to look for a new owner who is prepared to have them on board.

Guess how many they will find?

Clive

Yeah I wish them the best of luck.

Unions are a dying breed.

Rouge1

More like a cancer.

Clive

Agreed.

Ron Miljkovich

Then I think you would be wrong at the most 30 million. I don’t know how old the plants are but the majority of the existing equipment wouldn’t be used. New equipment would need to be purchased. I don’t think you’ll have several car manufactures bidding on the plants. Tesla would get it cheap if they wanted it. Tesla would also want some Federal and State assistance and decide is the labor market is suitable or would it be difficult attracting talent.. There’s already 7,000,000 jobs available that can’t be filled, so that tells me there’s jobs available but do they want to go to Michigan or Ohio..

Robert Weekley

Or Ontario, Canada? (Oshawa Plant. Last Vehicle to be produced in December, 2019!)

Will

They just did for the sonic

Pushmi-Pullyu

“I would assume if GM was to sell it would be in the billions.”

Then your assumption would be wrong. Tesla bought the NUMMI building and property for $42 million, plus $17 million for manufacturing equipment and spare parts which hadn’t been auctioned off and removed.

The term “fire sale price” applies here. Tesla might not get such a steep discount if it quickly moves to buy one of these newly idled plants, but it should if it’s willing to wait just a few years.

theflew

Nummi was an old plant that wasn’t producing anything at the time. These plants were upgraded in the past couple of years and producing cars as we write.

For Nummi GM was in bankruptcy and Toyota didn’t want to run that expensive plant by themselves with no planned product. As I said before these plants are little more than bargaining chips for GM. They hold all the cards and they have money this time. Plants are expensive to build, so unless you know you’ll never need it again you’re better off holding on to it.

Impartial Observer

theflew said:
“Nummi was an old plant that wasn’t producing anything at the time.”

It’s not like the NUMMI plant was sitting around vacant for years. The last Toyota vehicle made at NUMMI, a Corolla, rolled off the line in April 2010. The very next month in May 2010, Tesla bought NUMMI.

joe

theflew, you are one of the few who’s in the know.

Will

Not really. Tooling for product line can be done in 3-6 months. Look at the Tesla China plant. Not built yet producing next fall

Pushmi-Pullyu

It won’t be producing in the sense of fully operational, high-speed mass production for 2-3 years, according to Tesla’s announced plans. Tesla has said some parts of Model 3 assembly will happen there.

My guess is they’ll ship gliders and possibly drivetrains from the Fremont plan to China, and do battery pack assembly and installation at Shanghai using Chinese battery cells.

theflew

On Tesla’s time table that means 2020. Building a plant and putting robots in it doesn’t mean your producing cars the next day. Even if the lines were exact replicas of Fremont you still have to program the robots for small variations in location.

antrik

In Shanghai, they will probably start with general assembly only at first; and replicating the Fremont GA4 line (yes, the “tent” one) means it will initially be mostly manual. So no need to program robots… These will come later.

As for Model Y production, they will of course need robots from the start for body welding etc. Still, they don’t need to put most of these in more than a couple of months before first production runs. (Ramping to meaningful volumes of course will need several months after that at least… But that’s irrelevant to the discussion at hand.)

The real problem I see is that they need to know some time in advance how the lines will be laid out, what equipment exactly they need — which means they need to know in time if they are taking over an existing plant…

Kosh

” Is Chevy dumping the Corvette line? ”

I’m guessing no since they trademarked “e-Ray” awhile back?

G2

Elon; come to Canada and build the Semi & Roadster 2. The Premier will bend over backwards!

Michael

Doubtful. FordNation hates effin’ Elon, hates effin’ EVs, hates effin’n libtard ecoNazis and are too boozed up on buck-a-beers to even comprehend climate change. But yeah, welcome to Oshawa! A few miles from the town of Cobalt, upstream from Nemaska Lithium, Quebec’s eight tariff-free aluminum smelters and signatory to several international free trade agreements.

andre

plus Quebecs 98% clean electricity!!!!!!!!!

arne-nl

And a populist a the helm who hates EV’s….. 🙂

antrik

Wasn’t that Ontario?

J P DeCaen

You mean Trump wannabe Doug Ford? Why doesn’t he start by restoring the EV credit? Tesla had to sue to help some buyers get that credit. What a clown.

Martin Tesar

Excellent News from Elon as GM has shafted Australian manufacturing last year and is now shafting USA and Canada.
It would be brilliant if Tesla could take over some of the factories, but knowing GM I fear they would rather burn them down and bury them in the dirt that sell them to another car maker.

It has been and is a tragedy for local workers and suppliers, does GM expect Australians, Americans and Canadians to buy Chinese made autos? they are in for a rude awaking as people don’t forget so easily,
Irony when buying Japanese brands made in America, they are more American than GM or Ford who uses alot of Chinese and Mexican parts.
Interesting times indeed when there is both bad management, products resulting in market shifts.
GM closes Volt production and they say they are going electric?
Last time I checked people still need full EV, Plug in EV’s and Hybrid.

Globalism at all costs is the new insanity.

Pushmi-Pullyu

“…knowing GM I fear they would rather burn them down and bury them in the dirt that sell them to another car maker.”

Contrary evidence: Tesla’s Fremont assembly plant was once the NUMMI plant, which was a joint venture between GM and Toyota. After the plant was closed, GM sold its share to Toyota, which then sold the plant to Tesla.

I’m not saying the same would happen today, but I think it’s a mistake to claim it can’t possibly happen.

noleaf4me

Sounds like a plan — out with the old and in with the new!!!

ffbj

Cheap fix for the sign. Just change “G” to a “T” and the background from blue to red.

antrik

Heheh.

The also need to tape over that UAW badge, though 😉

KumarPlocher

I love this man. He has his flaws, but what he has done is one of the greatest things anyone has done for humanity in my lifetime. I say this here because in the video, he strikes the chord that I’m talking about. I was a CEO of an alternative fuels business, and I always said, if we go bankrupt because something better comes along, I’m happy with that.

USA in China

Rescuing workers from a shuttered GM factory would be great for Tesla’s image in middle America. Despite the powerful interests trying to paint Tesla as a company for sissy environmentalists from California, Tesla will be seen as a hero and GM the villain. We could see hardcore petrolheads making the transition. Tesla, a true ‘murican company.

Will

So true. They will see it that they save those jobs and here in the Midwest jobs are everything. Good publicity is free advertising

Sean Wagner

There are openings in Fremont and Sparks for the workers willing to rescue themselves. Poperly skilled people is just what Tesla needs, and I’d prefer they hire those who get up and move.

Lee Ramer

It kills me how the ones who are always complaining about the blacks and the hispanics and the immigrants stealing their jobs are the same ones who want the govt bailouts and refuse to move to get a better job or better themselves.

Will

True

Ron M

They should send in there resumes to Tesla’s other operations Buffalo, Spark, Freemont.

J P DeCaen

Seeing gleaming Teslas come out of an Ohio plant with proud workers looking on, knowing they can have their kids grow up in that town and maybe work as engineers or whatever at the plant would be utterly gratifying. These jobs are staying, boys. The future belongs to corporations with a social conscience, despite the cynics’ beliefs.

Will

He should buy the plant in Ohio and Michigan plant should be a Mega plant for the batteries. People don’t care if it’s not union if the can have a job and sustain their families

ModernMarvelFan

It certainly won’t be super cheap for sure.

Then again, it could happen, but I wonder how UAW is going to work that thru since all those plants are heavily controlled by UAW.

Nemo

When you buy assets you don’t take over employment agreements. All employees are rehire. There would be no union initially. They could unionize later if voting takes place.

Sean Wagner

But human connections and biases can endure.

Will

Not rehires but new employment

Nemo

Rivian bought Mitsubishi plant in IL for $16 mil.

Pushmi-Pullyu

…and it’s going to have to deal with a lot of UAW activism, as Tesla is in California. Illinois is surrounded by “right-to-work” States; that is, those whose State laws offer no strong support to unions.

Do Not Read Between The Lines

Just said possibly. Meaningless. Ignore it.

William L

Musk is a genius that he said Tesla would consider buying GM factories. it’s time to negotiate with the state to allow Tesla to direct sell his cars.

robus

Seems an odd way to negotiate, telling the potential seller you’re interested even before you know it’s available?

Edward

I am for anything for Tesla to make cheaper EVs

Sean Wagner

Then let’s end the steel tariffs with everyone but China [special case]. It’s high-value added jobs that make countries rich.

Milfan

Very good news. This will give some cash to GM and also work to laid off workers.
Definitely the governments of Michigan, and USA will force GM to sell it.
They cannot keep it locked or sell it to some foreign company and this will be treated as betrayal.

Perhaps, Tesla can start making Volt with Tesla’s motors, battery and some name like Model-V (Volt) as a honor for the famous plugin.

antrik

There are so many reasons why Tesla wouldn’t make a modified Volt, I don’t even know where to start…

theflew

Why can’t GM keep it locked? They could have a skelton crew building parts for some other vehicle. Heck they could run the plant for a while just make spare parts for the Volt.

David Wolff

I don’t think so….Elon is waiting for a FORD plant…heh heh heh

Sean Wagner

Elon waiting? Woo hoo!

Big Solar

LOL!

K A Cheah

WISE MOVE, EXPERIENCED VEHICLE BODY MAKERS ARE AVAILABLE IN ABUNDANCE AND ONLY THE ICE TRANSMISSION MAKERS NEEDED SOME RETRAINING FOR MAKING ELECTRIC MOTORS’ TRANSMISSION TO RAMP UP PRODUCTIONS FOR SEMI-TRUCKS, MEDIUM TO HEAVY TRUCKS & PICKUPS PRODUCTIONS TO MEET THE GREAT DEMANDS GENERATED FROM ELECTRIFYING HEAVY & LONG DISTANCE TRANSPORTATION REVOLUTION IN NORTH AMERICA SURELY & TRULY RIGHT???

Sammy

Please stop posting with the text all in Capital. People don’t read it and tend to downvote simply because of the way you write and not what you write.

Steven Loveday

Correct. Oftentimes, our system just deletes it.

Spoonman.

Too loud; didn’t read

Clive

He might still have a blackberry lol

Al D

GM should bring back production of some of its vehicles from Mexico instead of closing plants. I don’t know if Mexico has ever turned out a reliable vehicle. I’d never buy one made there. My very reliable Camry is made in Kentucky. I do know that Carrier and Bryant central A/C units made in Mexico were far more unreliable than the units made in the U.S. My A/C guy severed his ties with the company. Thankfully, my Bryant unit was made in the U.S. right before Carrier started making them in Mexico. Carrier recently reversed course and brought work back to the U.S.

Peter

“I don’t know if Mexico has ever turned out a reliable vehicle.”

Has Murica ever turned out a reliable vehicle?

antrik

Model T was probably not too shabby for its time?… 😉

Craig

Musk should buy all of GM and make it a real company.

groingo

As unstable as the government is and may continue to be over the next six years, I would not even consider building anything in the US period.
The exploding electric vehicle markets are everywhere but the US especially China, Europe and India while the sole declining market is the US.
Would look to BRICS countries in growing markets that are not effected by the US’s stupid and costly politics, wave goodbye to the US, run don’t walk from the US.

Aaron

Hey Michigan! Tesla will take over shuttered plants if you LET US SELL OUR F***ING AMERICAN-MADE VEHICLES IN YOUR STUPID STATE!

Dav8or

Be quiet.

dgate

Your “patents” are open source! Where has she been hiding?

ffbj

ffbj
I think the Volt is about dead.
Falling production, disinterest, lack of support will probably kill it.
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1 year ago

Craig

Musk should buy all of GM