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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.

GM phasing out light-duty 1500-series vans

In the market for a fullsize van but don't need a heavy-duty model? You're in the minority, and you're also out of luck. That's because there are barely any more fullsize vans on the market with gross vehicle weight rating of less than 8,500 pounds, the threshold that separates light- and heavy-duty vans.
According to PickupTrucks.com, neither the Ford E-Series, Ram ProMaster, nor Mercedes-Benz Sprinter are available in light-duty versions. Few of the Ford Transit configurations are, either, and now General Motors is discontinuing production of the 1500-series Chevy Express and GMC Savana.
Apparently light-duty versions accounted for just 23 percent of Express sales and only 7 percent of Savanas. Add to that the fact that these 1500 versions were the only ones using the old generation of engines and suspension, and that the Wentzville plant near St. Louis, Missouri, is trying to make room for the next Chevy Colorado and GMC Canyon pickups, and the fate of the light-duty GM van was sealed.

GMC has received 65,000 Hummer EV orders so far

The GMC Hummer pickup truck only just went on sale, and already there's word from company brass that demand is higher than expected. According to a report from CNBC, Duncan Aldred, global vice president of GMC, said the automaker has received more than 65,000 combined orders for the current electric truck and upcoming SUV. What's more, the number of customers converting reservations into orders is humming along at 95%, which is also higher than the company projected. "Production’s actually slightly ahead of plan and weÂ’re putting things in place now to actually expedite that as well, so we can deliver these reservations quicker than we originally thought," Aldred said, adding that new orders placed today probably won't result in a delivered vehicle until 2024. "WeÂ’re doing all the studies on that and weÂ’re confident we can go a lot quicker than we originally thought," Aldred said, "But it still means a reservation now probably means delivering in Â’24." The version of the Hummer pickup that's currently being built is the highest-spec Edition 1 model. That truck ran at least $110,295, but since it's already sold out, new customers will be looking at Hummer EV 3X that starts right around the $100,000 mark before any optional equipment is added (and assuming you can find a dealer that won't try to jack up the price). At some unspecified point in the next year or so, GMC will start building a lower-cost Hummer 2X for $89,995. A year or so later, the  $79,995 Hummer EV 2 will make its debut. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.