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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.

2015 Chevy Silverado, GMC Sierra heavy duty trucks unveiled

Proving just how important trucks are in the Lone Star State, General Motors has chosen the State Fair of Texas to reveal its new heavy-duty trucks from Chevrolet and GMC. Looking to take some of the wind out of the sails of the 2014 Ram HD and 2015 Ford F-Series Super Duty, the 2015 Chevy Silverado HD and 2015 GMC Sierra HD will have plenty to brag about when they go on sale in the first quarter of next year.
The bragging starts right up front with two available engines. The standard engine is a Vortec 6.0-liter V8 that produces 360 horsepower in the 2500HD and 322 hp in the 3500HD to go along with 380 pound-feet of torque in all applications. The true benefit of this powerplant is that buyers can opt for it to run on straight gasoline, E85 FlexFuel or even compressed natural gas (CNG). For maximum towing and even more flexibility, the 6.6-liter Duramax turbodiesel B20-capable V8 is the way to go, with its carryover 397 hp and 765 lb-ft of torque. Though the max towing abilities of 23,200 pounds (with a fifth-wheel trailer) are less than the 30,000-pound rating of the new Ram, the GM HD trucks offer better conventional trailer towing (19,600 pounds) and payload (7,374 pounds) than rival heavy-duty trucks...for now. The Duramax is paired with a six-speed Allison automatic transmission, while the gas engine gets GM's six-speed Hydra-Matic - no manual transmissions are offered.
Including the engines, GM continues to offer a broad range of configurations (more than 150, to be exact) including three cabs, two cargo bed lengths, numerous trim levels and, of course, the choice of single- or dual-rear wheels on the 3500. The HD trucks have faces that are similar to their half-ton counterparts, with the exception of a larger grille and bigger for improved air flow, and like the current HD offerings, the new Silverado HD and Sierra HD DRW models feature a one-piece bed design incorporating the fender extensions.

New J.D. Power Initial Quality Study puts Porsche, GM in spotlight

J.D. Power and Associates has released its annual Initial Quality Study, and this year, Porsche and General Motors took the spotlight. The study, which asks new car owners to report problems experienced during the first 90 days of ownership, found that overall, the industry averages 113 problems per 100 vehicles.
Porsche managed a score of just 80 problems per 100 vehicles, while GMC took the second spot on the podium with 90. Lexus filled out the top three with 94 problems per 100 vehicles, followed by Infiniti at 95 and Chevrolet at 97. The study also looks at specific models, and found the Lexus LS to enjoy the best initial quality at 59 problems per 100 vehicles.
Interestingly enough, the report found that around two-thirds of most owner problems experienced in the first 90 days are attributable to vehicle design instead of mechanical failure. Specifically - echoing a refrain we've been hearing for the last few years - owners are having a hard time figuring out how to use the technology present in their new vehicles. Head over to the J.D. Power site for more information, or scroll down below for the company's related press release.