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How Chevy Silverado, GMC Sierra will take on the Ford F-150 profit machine

FORT WAYNE, Ind. — When General Motors engineers were developing the 2019 Chevrolet Silverado and GMC Sierra pickup trucks, some of them joined public tours of Ford's Dearborn, Mich., factory to watch aluminum-bodied F-Series trucks go down the assembly line. The redesign of the Ford F-Series trucks, launched in 2014, set a new standard for fuel economy and lightweight vehicle construction. But armed with stopwatches and trained eyes, the GM engineers believed they saw problems. "They had a real hard time getting those doors to fit," Tim Herrick, the executive chief engineer for GM truck programs, told Reuters. His team did more intelligence gathering. They bought and tore apart Ford F-Series doors sold as repair parts. Their conclusion: GM could cut weight in its trucks for a lower cost using doors made of a combination of aluminum and high-strength steel that could be thinner than standard steel, shaving off kilograms in the process. These pounds-and-pennies decisions will have major implications in the highest-stakes game going in Detroit: dominance in the world's most profitable vehicle market, the gasoline-fueled large pickup segment. What's more, GM is banking on strong sales of overhauled 2019 Silverados and GMC Sierras to fund its push into automated and electric vehicles — a business many investors see as the auto industry's long-term future. The risks are high given the hits automakers have taken from U.S. President Donald Trump's trade policies. Rising aluminum prices spurred by Trump's tariffs are driving up costs on the Ford's F-Series, while rising steel and aluminum prices likewise drag on GM results. GM also has a significant risk should the United States, Mexico and Canada fail to agree on a new NAFTA trade deal, given GM trucks built at its Silao, Mexico, factory could face a 25 percent tariff if NAFTA collapses. Major profit per truck Interviews with GM executives and a tour at its factory here in northwest Indiana provide a detailed look inside GM's plan for the most important vehicles in its global lineup. These big pickups are everything Tesla's Model 3 or Chevy's Bolt electric car is not. The mostly steel body is bolted to the truck's steel frame, rather than the one-piece body and frame electric vehicles. The majority of trucks will have a V-8 gasoline engine powering the rear wheels — like the classic GM cars of the 1950s. Some Silverados will have new four-cylinder engines, but there is no electric or hybrid offering as of now.

May 2016: FCA wins, Ford and GM stumble on weak car volumes

The May 2016 sales numbers are in, and it looks as though FCA is getting some vindication for boldly cancelling two slow-selling car models. Meanwhile, Ford saw overall sales dip and GM's May volume took a big dive versus the same month in 2015. While Marchionne's decision to axe the Chrysler 200 and Dodge Dart has drawn criticism as being short-sighted, it's working for FCA so far. Although the Dart and 200 aren't out of production yet and no capacity has been shifted to crossover or trucks, May's numbers show that the emphasis on Jeep and Ram models makes sense right now. FCA's US sales rose 1 percent last month compared to May 2015, putting the year-to-date total at 955,186 vehicles, an increase of 6 percent compared to the same period last year. Standouts included the Jeep Renegade, Compass, and Patriot, and the Fiat 500X. Ram pickup sales were down 3 percent. And your fun fact is that Alfa Romeo sales were up precisely 10 percent, for a total of 44 4Cs sold versus 40 in the same month last year. At FoMoCo, the Ford brand took a hit to the tune of 6.4 percent from May 2015 to 2016, registering 226,190 sales last month. Lincoln showed improvement on its modest numbers, going from 9,174 to 9,807, a 6.9 percent increase. Overall, Ford was down 5.9 percent for the month to 235,997; despite the slump, year-to-date total Ford sales are up 4.2 percent to 1,112,939. Strong sellers included Escape, Expedition, F-Series, and Transit - big stuff. Most small and/or efficient models (Fiesta, Focus, Fusion, C-Max) saw sales slides. Fusion sales were also down, likely due to effects of model changeover to the freshened 2017 model. Ford has promised four new crossovers and SUVs by 2020 and if things keep trending this way the company will be able to sell them, but things could change in the next four years. GM saw the worst of it for domestic brands. Retail and fleet sales were down for each of the four divisions, with the May 2016 total dropping 18 percent to 240,450 vehicles. GM's year-to-date sales are down 5.0 percent in 2016 to 1,183,705. Both the Sierra and Silverado were down significantly, and the majority of Chevy, Buick, GMC, and Cadillac nameplates saw sales decreases, with both small cars and larger utilities included. Not even big stuff could help GM this month, it seems. We'll have more on the rest of the industry's May sales as those figures trickle in.

2015 Chevy Spark will have lighter, smaller battery

As General Motors gets ready to release the 2015 Chevy Spark EV, it is retooling the Brownstown Battery Assembly to build a new battery system for the chirpy little electric car. The new Spark will lose a few pounds and kWh from its lithium-ion pack, but it will keep all of it's performance specs. The current Spark EV uses a 21-kWh lithium-ion battery pack with bits made by A123 Systems (known as B456 Systems during bankruptcy). For the 2015 model, GM is going to build a 19-kWh battery system in-house that will use 192 LG Chem cells. Losing a bit of energy capacity means that the battery system for the 2015 Spark EV will be 86 pounds lighter but it will keep the EPA-rated 82-mile range and 119 MPGe. The 2015 Spark EV also keeps its $26,685 (plus destination) starting price from the 2014 model. The car will once again qualify for a federal tax credit of up to $7,500. LG Chem also supplies the cells for GM's other plug-in vehicles from its facility in Western Michigan. The Brownstown production line currently builds the battery packs for the Chevy Volt, the Opel Ampera and the Cadillac ELR. You can read our first drive of the 2014 Chevy Spark here. Brownstown Battery Assembly Expands Capabilities Will build battery system for 2015 Chevrolet Spark EV 2014-05-14 DETROIT – General Motors will bring all its electric vehicle battery building capabilities in-house with production of battery systems for the 2015 Chevrolet Spark EV at its battery assembly plant in Brownstown, Mich. "Using our in-house engineering and manufacturing expertise enabled us to deliver a battery system that is more efficient and lighter than the 2014 Spark EV without sacrificing range," said Larry Nitz, executive director of GM global transmission and electrification engineering. "Our successful working relationship with LG Chem has allowed us to deliver a new battery system for the Spark EV that helps us to better leverage our economies of scale." A newly designed battery system features an overall storage capacity of 19 kWh and uses 192 lithium ion cells. The cells are produced at LG Chem's plant in Holland, Mich. The battery system weight of 474 lbs. is 86 pounds lighter than the system in the 2014 Spark EV. The Spark EV battery is built on a dedicated production line at Brownstown, which also manufactures complete battery packs for the Chevrolet Volt, Opel Ampera and Cadillac ELR.