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Tesla Interested In Buying GM' s Closing Factories
Dec. 10, 2018 3:20 PM ET by Jared Rosenholtz Industry News / 10 Comments GM's loss could be Tesla's gain. General Motors dropped the collective jaws of everyone in the automotive industry with the announcement it would be killing off six models and closing down factories in the process. The six discontinued models include the Chevy Cruze, Volt, and Impala, Buick LaCrosse, as well as the Cadillac CT6 and XTS - and more models could still be on the chopping block. So far, GM has announced it will be closing five of its plants in Canada, Ohio, Michigan, and Maryland. It is unsure whether these plants will be closing permanently, or if GM has other plans for them. If GM will, in fact, leave these plants idle, there may be a buyer interested in using them. Tesla In an interview with CBS '60 Minutes,' Tesla CEO Elon Musk said he would be interested in buying the GM factories. "It's possible that we would be interested. If they were going to sell a plant or not use it then we would take it over," Musk said. Tesla initially struggled to hit production targets on its highly anticipated Model 3 sedan but has recently been able to produce them at a steady rate. In order to meet production goals, Tesla resorted to unconventional methods such as building a second assembly line in a tent-like structure next to its Freemont plant. Musk says this effort helped increase production by 50%. Purchasing one or more of GM's factories could help Tesla further increase its production capabilities. Tesla Author It is still unknown which plant(s) Telsa would be interested in purchasing and whether or not Musk's interest in the GM factories is even serious. Musk does have a habit of making bold claims. If Tesla were to buy one of the GM plants, the facility in Oshawa, Ontario would be an unlikely candidate. In an interview with CTV News, Will Mitchell, a professor of strategic management at the University of Toronto's Rotman School of Management said there was a "very low" chance of Oshawa plant being a target for Tesla. "It's a huge plant. They're not ready to go to that scale of production yet," he said. "Never say never, but it's unlikely." The factory would also need to be significantly retooled to produce electric cars and the staff would likely have to be retrained. "The only solution for Oshawa is General Motors at this time," Mitchell said. Tesla Tesla Join The Discussion
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Tesla Model 3 Jared Rosenholtz Editor-at-Large After graduating with an MBA, Jared pursued his love of cars by becoming an automotive journalist. An internship with CarBuzz grew into his current position as Editor At Large. Jared now spends most of his time evaluating new vehicles and chasing the latest news stories in the automotive industry. When he’s not attending Cars & Coffee events on the weekend, Jared loves to watch NFL football and cruise around with the top down in his German convertible. Contact Jared @Carsnbites @jar_rosenholtz LoginSign Up Home News Features Car Reviews Car Advice 2021 CarBuzz Awards New Cars Used Cars Future Cars Compare Cars Sell My Car Car Dealerships Buy Here Pay Here Used Car Reviews Popular Tags Cars # Video # TOP # Spy Shots # Reveal # Rumor # Auto Show # Supercar # Tuning # Car Culture # Industry News # Motorsport Acura Alfa Romeo Aston Martin Audi Bentley BMW Bollinger Bugatti Buick Cadillac Caterham Chevrolet Chrysler Dodge Ferrari Fiat Fisker Ford Genesis GMC Hennessey Honda Hyundai Infiniti Jaguar Jeep Karma Kia Koenigsegg Lamborghini Land Rover Lexus Lincoln Lordstown Lotus Lucid Motors Maserati Mazda McLaren Mercedes-Benz Mini Mitsubishi Nissan Pagani Polestar Porsche Ram Rimac Rivian Rolls-Royce Spyker Subaru Tesla Toyota Volkswagen Volvo By Make Acura Alfa Romeo Aston Martin Audi Bentley BMW Bollinger Bugatti Buick Cadillac Caterham Chevrolet Chrysler Dodge Ferrari Fiat Fisker Ford Genesis GMC Hennessey Honda Hyundai Infiniti Jaguar Jeep Karma Kia Koenigsegg Lamborghini Land Rover Lexus Lincoln Lordstown Lotus Lucid Motors Maserati Mazda McLaren Mercedes-Benz Mini Mitsubishi Nissan Pagani Polestar Porsche Ram Rimac Rivian Rolls-Royce Spyker Subaru Tesla Toyota Volkswagen Volvo By Car Type SUVs Crossovers Sedans Coupes Trucks Sports Cars Wagons Vans Hatchbacks Convertibles Small Cars Luxury Cars Electric Cars Hybrid Cars Future Cars By Price Up to $15K $15K - $25K $25K - $35K $35K - $45K $45K - $55K $55K - $75K $75K - $100K $100K - $200K $200K - $300K Above $300K Back To Top