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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 marks 500 million vehicles

General Motors is marking a major global milestone, as 500 million vehicles have rolled off its assembly lines since the company's founding in 1908. To mark the occasion, the automaker is continuing to invest in production and offering a one-time discount to some customers. GM North America boss Alan Batey used the festivities to announce the Fairfax Assembly factory in Kansas as one of the sites earmarked for the company's $5.4 billion in upcoming investments. The plant will get $174 million of that money for new equipment and technology to build the 2016 Chevrolet Malibu. Among the upgrades will be a shake-and-rattle booth that will simulate road conditions to find squeaks. To commemorate both the production milestone and the Fairfax plant, Batey and company CEO Mary Barra also gave away a 2016 Malibu to a wounded Iraqi war veteran, and the two execs announced that in the third week in May all GM employees can share a one-time customer appreciation discount with friends to help get them into the automaker's products. Barra also gave a speech to the workers there about some of the other milestone's in the company's history, which you can read below. Innovation on the Line: GM Manufacturing Milestones Many of General Motors' most important innovations have occurred behind the scenes, in its manufacturing facilities. Concepts such as changeover, flexible assembly, automation, computer simulation, machine vision and robotics were developed at GM. Over the decades these innovations have helped enable improvements in vehicle quality, efficiency and competitiveness. 1901: Ransom Olds' famous Curved Dash Oldsmobile, designed with simplicity, reliability and value in mind, was the first American car built in a factory designed specifically for automobiles and in standardized volume production. GM acquired Oldsmobile in 1908. 1908: Cadillac wins the Dewar Trophy, Europe's most prestigious award for precision and excellence in manufacturing, by demonstrating the auto industry's highest standards for precision and interchangeability of parts by disassembling three Cadillacs and mixing the parts randomly before reassembling and driving them before a contingent of judges. 1922: GM hires William Knudsen to lead Chevrolet's turnaround. Knudsen implements flexible mass production, which helps Chevrolet incorporate annual styling changes and take market share from Ford.

Cadillac XT4 crossover to be built in Kansas City

Cadillac's upcoming XT4, a crossover we've previously known as the XT3 in a long series of spy shots of heavily camouflaged mules, will be built at General Motors' assembly plant in Kansas City on the same platform as the Chevrolet Malibu, Bloomberg reports, citing people familiar with the plan. That will give Cadillac another entry in the red-hot luxury crossover segment and, GM hopes, help to reverse a sales slump in the U.S. It'll also breath life into the Kansas City plant that makes the slow-selling Malibu, where GM cut a third shift last year, by sharing the assembly line between the crossover and sedan and defraying costs for each vehicle. The XT4 was known most recently as the XT3, with styling cues based on the Escala concept sedan from 2016. It's slightly smaller than the XT5, Cadillac's top-selling vehicle, and will also augment the full-size Escalade in Cadillac's stable of SUVs when it makes its expected debut later this year. Cadillac last week reported its second-highest-ever sales mark with 356,467 vehicles, an increase of 15.5 percent over 2016. But that mark papers over an 8 percent sales decline in the U.S. to 156,440 vehicles. The luxury brand is on a hot streak in China, where sales jumped 50.8 percent last year to 175,489 units.Related Video: Image Credit: Brian Williams Plants/Manufacturing Cadillac Chevrolet GM Crossover sales cadillac xt5 cadillac xt4 cadillac xt3