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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.

Performance cars overpower the Detroit Auto Show

At precisely the stroke of noon on Monday, the 2016 Acura NSX rolled on stage at the Detroit Auto Show amid plumes of smoke and dancing lights. The sounds of the powerful engine revving soared to the rafters. It was the second coming of Acura's iconic sports car, and the reveal had all of the expected trappings. Afterwards, champagne corks popped and the bubbly flowed. It was noon in Detroit, but for the green-car movement, it seemed like the clock had struck midnight. That's an exaggeration, but performance was the overwhelming theme of North America's most important show. Ford – which has helped lead the way in smaller displacement engines and early adoption of hybrid powertrains – had more than 1,500 horsepower on stage one point after it revealed the GT concept, the new F-150 Raptor and the Shelby Mustang GT350R. The NSX is technically a hybrid (it has three electric motors), but with 550-plus hp, there's no doubt this Acura was bred on the track. The theme continued throughout the show at nearly every stand. Alfa Romeo showed off the 4C Spider, which is the open-air version of a car that purports to be the spiritual successor of the high-performance 33 Stradale from 1967. On Tuesday, Cadillac is scheduled to reveal the 640-hp CTS-V with the V8 transplanted from the Corvette Z06, and the Lexus was expected to roll out its own V8-powered beast, the 467-hp GS F. For enthusiasts – especially enthusiasts with money – these are halcyon days. But make no mistake, all of this power has a purpose. Ford product chief Raj Nair said the Blue Oval uses high performance cars to develop technologies, like aerodynamics and materials, which are then shared across its lineup. "It's another proof point about how serious we are in developing innovation through performance," he said. Ford, which is rolling out at least 12 performance cars by 2020, said the sporty cars attract younger and more influential buyers to its fold, which can help burnish its image beyond adding sales volume. Toyota is taking a similar approach, senior vice president Bob Carter said, noting the Lexus RC coupe draws people into showrooms and gets them excited about the brand, even if they don't end up buying one. "They provide an aspiration and a halo that provides the attention that gets you noticed in a cluttered market," he said.

GM uses wind power to build SUVs, trucks

This week started with a chill, as the Intergovernmental Panel on Climate Change issued a dire report with scientists warning, "The world we know today is not the world we will see in 50 years," with temperatures rising at their current rates. In the meantime, the trend toward purchasing more SUVs and crossovers continues. Most automakers, though, have set goals toward more sustainable production. That includes General Motors, which, somewhat ironically, plans to use wind power to produce many of its vehicles, including pickups and full-size SUVs. As the Detroit Free Press reports, several wind farms are coming online to support cleaner production as part of a partnership between GM and energy producer CMS Enterprises. At the beginning of October, the 100-megawatt Northwest Ohio Wind Farm began producing energy, supplying GM operations in Ohio and Indiana, where manufactured vehicles include the Chevy Cruze, Chevy Silverado and GMC Sierra. Hilltopper Wind Farm in Illinois will begin producing another 100 megawatts for GM manufacturing in the region. In Texas, where GM builds the Chevrolet Tahoe, Chevrolet Suburban, GMC Yukon, GMC Yukon XL and Cadillac Escalade, the automaker is getting 50 megawatts from Cactus Flats Wind Farm beginning October 9. Using wind power isn't just about being green, but also for the sake of price stability. As Rob Threlkeld, GM's global manager of renewable energy told the Free Press, "You don't get the price spikes this way, like you do with fuel, and it reduces the environment footprint of the vehicle you're driving." Threlkeld said that renewable energy has already meant "millions of dollars in savings" for GM. GM plans to power all of its global operations with renewable energy by 2050. This week, the automaker was ranked 76 on the EPA's "National Top 100 List" of green manufacturers. It was the only automotive company listed. Related Video: News Source: Detroit Free Press, GM, EPAImage Credit: GM Green Plants/Manufacturing Chevrolet GM GMC Truck SUV wind power sustainability