DESPITE COMING LIGHT-DUTY EV PICKUPS, GM BANKS ON GAS-FUELED HD TRUCKS
- General Motors continues focusing heavily on its pickup truck production, as it announces an additional $1 billion in funding for Flint, Michigan, facilities.
- Specifically, the $1 billion will be used to retool the Flint Assembly Plant and to buy new stamping dies for the Flint Metal Center.
- The company is being bullish about truck production after it took the top sales spot in 2022, indicating it's not willing to let go of ICE trucks just yet.
Electric vehicles are all the rage for most automakers, as brands reshape their production lines and product offerings for the 21st century. Optimists see a utopia of EVs silently cruising our streets (perhaps even autonomously) within the next five to 10 years, but domestic manufacturers are taking a more pragmatic approach. And General Motors' most recent investment announcement is a prime example of that.
Specifically, GM is making a $1 billion investment into its Flint, Michigan, manufacturing sites, the company's long-running assembly and metal stamping plants. These plants focus specifically on heavy-duty crew as well as regular cab pickup trucks and both facilities are about to get a big upgrade.
Dividing the $1 billion, the Flint Assembly plant will receive $788 million to prepare for GM's next-generation internal-combustion, heavy-duty trucks, specifically the Chevrolet Silverado and GMC Sierra. Expanding the general assembly conveyor belt and retooling the plant will be the primary goal, though some broad plant expansion is also covered. The Flint Metal Center will use $233 million for new stamping dies for the next-generation pickup, in addition to refreshing existing plant equipment.
"Today we are announcing significant investments in Flint to strengthen our industry-leading full-size pickup business by preparing two plants to build the next-generation ICE HD trucks," said Gerald Johnson, executive vice president, Global Manufacturing and Sustainability at General Motors. "These investments reflect our commitment to our loyal truck customers and the efforts of the dedicated employees of Flint Assembly and Flint Metal Center."
To put it simply, business has been booming for GM on the truck front, with a 38% year-over-year increase in heavy-duty pickup sales in 2022. That increase accounted for over 280,000 heavy-duty trucks sold in 2022, not including the company's light-duty full-size Silverado and Sierra trucks. In 2022, GM sold more than 754,000 of those, surpassing Ford and Ram for the top spot.
GM will want to get shovels in the ground quickly, as Ford is launching its latest Super Duty trucks this summer. And while Ford, GM, and Ram have or are launching battery-electric light-duty full-size pickups, those brands are sticking with gasoline on the heavy-duty side of the truck aisle, at least for now.
These investments build on a previous $700 million investment into Flint-area operations earlier this year. In fact, GM just invested around $579 million in sixth-generation small block V-8 engine production, indicating that gas-powered trucks are sticking around for awhile.
"This investment bolsters GM's US manufacturing operations, which include more than 50 assembly, stamping, propulsion, and component plants and parts distribution centers nationwide," the report reads. "It also highlights the company's commitment to continue providing customers a strong portfolio of ICE vehicles for years to come."
In contrast to the company's earlier truck production idling, GM's investment appears strategic from a consumer and internal standpoint. Not only is it signaling to consumers that gas-powered trucks will remain available, but reporting from Reuters suggests this is an offering to the United Auto Workers union ahead of contract bargaining in September. Similarly, the choice to retool a plant that creates high-sales, high-margin models suggests the outlook for summer supply levels remains positive.
Do work trucks still need to be V8-powered these days among turbocharged and even battery-electric options? Please share your thoughts below
Looking to purchase a car? Find your match on the MSN Autos Marketplace 2023-06-06T18:38:17Z dg43tfdfdgfd