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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 seatbelt recall affects over 1m Silverados and Sierras

The Basics: General Motors will recall 895,232 examples of the 2014-2015 Chevrolet Silverado and GMC Sierra 1500 pickups in the US. The campaign will also affect the trucks in markets worldwide, and the total number the company will recall is 1,037,982. The Problem: A steel cable connects the seatbelt to the vehicle, but over time repeated bending can cause the part to fatigue and separate. Injuries/Deaths: None reported. The Fix: Dealers will enlarge the side shield opening and install a pusher bracket on the tensioner. Technicians will also replace the entire tensioner assembly if necessary. If You Own One: GM will contact owners about the recall. The company hasn't said when those notifications would begin. More Information: There are still about 3,000 new examples of these older pickups at dealerships. Until mechanics fix the problem, these vehicles are subject to a stop-sale. Similar problems have affected the General's vehicles in the past. In 2015, the company recalled over 400,000 units of the 2011-2012 Chevrolet Malibu for fatiguing cables. It also hit over a million Lambda platform crossovers in 2014. GM Recalling Certain 2014-15 Pickups to Repair Seat Belts DETROIT – GM is voluntarily recalling 895,232 model year 2014-15 Chevrolet Silverado and GMC Sierra 1500 pickups in the United States because the flexible steel cable that connects the seat belt to the vehicle can fatigue and separate over time as a result of the driver repeatedly bending the cable when entering the seat. This issue was discovered through warranty data, and there have been no reports of crashes, injuries or fatalities related to this issue. For trucks in the field, dealers will enlarge the side shield opening, install a pusher bracket on the tensioner, and if necessary, replace the tensioner assembly. The recall in the United States includes a stop-sale of approximately 3,000 new 2014 and 2015 model year pickups still on dealer lots. Dealers will repair the vehicles prior to delivering them to customers. Customers will be notified by General Motors. They also can look up their vehicle identification number (VIN) at either https://vinrcl.safercar.gov/vin/ website or at https://my.gm.com/web/portal/ownercenter to see if their vehicle is part of the recall. GM also will voluntarily recall and repair these models in other countries where they are sold, including Canada, Mexico, and several countries in Latin America and the Middle East.

Buyers ditching expensive European sedans to buy expensive American trucks

The New York Times ended the automotive week with a story that adds numbers and context to a range of other stories, from the crossover craze to the increasing median price of a new car to ever more grandiose pickup trucks. The NYT piece reveals that the shift to larger vehicles isn't merely about the average U.S. buyer swapping the midsize sedan for a Ford Edge. Luxury buyers are migrating from plush sedans to plush SUVs and trucks that creep close to six-figure prices, and the Detroit Three are running Treasury presses because of it. From 2013 to 2017, the truck category — everything from pickups to minivans — climbed from 30 percent of the market to 41 percent. In January of this year, trucks claimed 66 percent of new vehicle sales. At the milk-and-honey end of profits, GMC alone accounted for 11.3 percent of all vehicle sales over $60,000, not just trucks. That puts the luxury truck maker behind Mercedes-Benz and Ford, The Blue Oval's feasting on Lariat, King Ranch and Raptor versions of the F-150, which make up more than half of that pickup's sales, putting it ahead of Chevrolet, Porsche and Lexus on the high-dollar sales list. The average transaction price of a GMC in Denali trim last year was $56,000; it's easy to see why, when one dealer told the NYT he just swapped a 2012 BMW 550i for a $71,000 GMC Sierra Denali. That truck starts at $52,900. The NYT started its story with a buyer who took home a Ford Raptor instead of an Audi A6, and optioned that $50,020 Ford Raptor close to $80,000. Over at Lincoln, the new $72,055 Navigator — the one so popular that Ford will increase production — crossed hands for an average sale price of $77,000 in January. And a Jeep dealer told the NYT that the two $93,000 Trackhawks he had on his lot "won't be here more than a few weeks." While trucks head up in sales volume and price, cars are headed so viciously in the opposite direction that "the Detroit Three and even some foreign manufacturers acknowledge they are now losing money on many of the cars they sell." So ... get ready for a lot more crossovers and trucks. Related Video: Find out what vehicle is right for you. Give our Car Finder tool a try.