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Huge, pricey trucks haul jobs and profits for the Detroit Three

DECATUR, Texas — Mickey McMaster is on his 12th pickup truck. The 61-year old farm equipment dealer in Decatur, Texas, two weeks ago treated himself to a 2019 GMC Denali for around $69,000 — a reward for long hours at work. "For me this is the Cadillac of trucks, it's a real luxury vehicle," McMaster said. "I've worked my way up to afford a truck like this and it shows that I've earned it." McMaster is the kind of customer General Motors Co is banking on as it plans to add 1,000 jobs at a plant in Flint, Michigan that will build a new generation of its largest pickups. Demand from Texas and other heartland states for big pick-ups is providing a lifeline to many workers the No. 1 U.S. automaker is laying off at plants elsewhere. The Detroit Three automakers and thousands of their U.S. workers are counting on customers like McMaster to keep buying bigger and more luxurious pickup trucks even if overall U.S. vehicle demand weakens this year, as most analysts predict. At Flint, GM will build a new generation of its heavy-duty Chevrolet Silverado and GMC Sierras, including luxury models that are some of the most profitable vehicles on the planet. GM, Ford Motor Co and Fiat Chrysler Automobiles NV's Ram division own the segment and are each doubling down with new or redesigned models launching this year. Sales of heavy-duty pickups in the United States have grown to more than 600,000 vehicles a year, up more than 20 percent since 2013, according to industry data. Prices for luxury models can easily top $70,000. GM on Tuesday celebrated the launch of a new generation of heavy-duty GMC and Chevrolet pickups at the assembly plant in Flint, Michigan, that is now building all such trucks for the company. At the same time that GM is laying off thousands of U.S. workers and planning to shutter five North American factories, Flint is hiring. The plant runs on three daily shifts, six days a week. As the new model's assembly system ramps up, the plant's capacity will increase by more than 25 percent, plant manager Mike Perez told Reuters. The Flint plant plans to add 1,000 workers, more than half of the 1,500 factory workers who have asked to transfer from plants GM has targeted for shutdown as part of CEO Mary Barra's restructuring plan. "We're bringing in 50 to 100 people every week," said Perez. Workers last week were still finishing the job of retooling the Flint factory to build the new heavy-duty trucks as part of a $1.5 billion investment project.

Here's why automakers roll out those Texas-themed pickup trucks

Every year, automakers with a full-size truck link make a big show of the Texas State Fair, usually involving a reveal of a new model. Sometimes they show a whole new truck, and other times a special edition centered on the Lone Star state. While some people might write this off as a quirk of the industry, others might be wondering, "What's the big deal with Texas?" As it turns out, part of the big deal with Texas is big truck sales. According to Dave Sullivan, product analysis manager at AutoPacific, Texas buys more trucks than any other state in the country. It's not a small margin either. Edmunds.com, one in five trucks sold in the US are sold in Texas. The state also accounts for 15 percent of the country's large truck sales, which is more than twice that of California, the second largest truck market in America. Even when you break down sales only in Texas, trucks are a huge piece of the pie - Sullivan says that a quarter of new vehicle sales in Texas are trucks. One in five trucks sold in the US are sold in Texas. But it's not just sales that make truck builders give attention to Texas. As Sullivan explained, "Pickups are life in Texas." Both he and Hugh Milne, marketing and advertising manager for the Chevy Silverado line, said that trucks are key fixtures in Texas society, as both work trucks and luxury vehicles (or Texas Cadillacs as Milne called them). Milne said Texas is so important in the truck market that if you want to be successful in the rest of the country, "you've got to be successful in Texas." As for the State Fair, it has become a prime location for reveals in part because of the importance of the Texas market and because of how big the fair is. Milne also revealed that the State Fair also hosts its own auto show, so it's an ideal venue for a vehicle introduction. So there you have it. Why do truck builders obsess over Texas? It's because Texas obsesses over trucks. When you have one market that loves your product that much, you give it the attention it deserves. Related Video: Image Credit: Donovan Reese via Getty Images Auto News Marketing/Advertising Chevrolet Ford RAM Truck f-150 texas state fair

Autoblog Podcast #417

Episode #417 of the Autoblog Podcast is here, and this week, Dan Roth, Steven Ewing, and Brandon Turkus talk about what we're expecting to see at the upcoming 2015 Chicago Auto Show that kicks off on February 12. Of course, the podcast starts with what's in the garage and finishes up with some of your questions, and for those of you who hung with us live on our UStream channel, thanks for taking the time. Check out the rundown with times for topics, and you can follow along down below with our Q&A. Thanks for listening! Autoblog Podcast #417 The video meant to be presented here is no longer available. Sorry for the inconvenience. Topics 2015 Chicago Auto Show In The Autoblog Garage 2015 Bentley Continental GT Speed 2014 Ford F-150 Tremor Long-Term 2015 Volkswagen GTI Long-Term 2014 Jeep Cherokee Hosts: Dan Roth, Steven Ewing, Brandon Turkus Runtime: 01:25:53 Rundown Intro and Garage – 00:00 Chicago show – 27:37 Q&A – 47:27 Get The Podcast UStream – Listen live on Mondays at 10 PM Eastern at UStream iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Feedback Email – Podcast at Autoblog dot com Review the show in iTunes