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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.

Weekly Recap: Diesel scandal continues to fuel VW's woes

Volkswagen's woes continued this week when it was delisted from the Dow Jones Sustainability Index and stripped of awards. Senators are also lining up to advocate for criminal and civil action against the automaker, and its consumer reputation is in tatters. Put simply, it's been another rough period for VW. Despite this, the company eked out a sales gain of less than one percent in September, though that was well behind the overall market's performance. Sister brand Audi, which sells a diesel A3, was less affected, posting a 16-percent gain in September. Revelations that Volkswagen rigged millions of diesel-powered cars around the world didn't surface until September 18, so the full sales impact of the ongoing scandal won't likely be felt until October. Meanwhile, VW's image continues to take a beating, and an AutoPacific survey found only one in 14 vehicle owners have a positive opinion of the company. Before the scandal broke, three-quarters of respondents had a positive view of VW. The survey also found 64 percent don't trust Volkswagen, though the same number believe other companies are or may also be using cheating devices to pass emissions tests. "The reputation of diesels has been severely damaged, at least for the short term," Ed Kim, AutoPacific's vice president of industry analysis, said in a statement. Despite the lingering malaise, experts believe VW will recover, just as Toyota and General Motors eventually emerged from their own high-profile controversies. "Consumers have proven through numerous recalls that they are resilient and quickly return to their buying habits," Kim said. OTHER NEWS & NOTES Mazda to reveal sports car concept in Tokyo Mazda will bring a curvy sports car concept to the Tokyo Motor Show in October. The automaker is being especially coy with the details, only releasing the dark teaser shot that you see to the right and a cryptic statement that suggests the concept "condense[s] Mazda's entire history of sports-car development into a single model." Immediately, speculation abounded this is an RX-7 and RX-8 successor, though Mazda didn't specify what engine the concept will have. Reportedly, the company is still working on rotary engines. Mazda will have a Cosmo Sport 110S on its stand in Tokyo, which pioneered rotary technology in 1967. Read into that what you will. The Rock pitches Ford service Dwayne Johnson, also known as The Rock, is the new frontman for Ford service.

China-market Ford Edge spotted testing in Spain with a mystery wagon

There are a few threads to put together for this one. The U.S.-market Ford Edge and Lincoln Nautilus have been rumored to meet their ends during the 2023 model year; contract negotiations pointed to the Oakville Assembly Plant that that builds being converted to build five Ford electric vehicles in 2025. On top of that, we've heard years of rumors about a Ford Fusion Active wagon-esque product that would challenge the Subaru Outback and fill a perceived gap in the U.S. lineup. We're not sure what the Ford vehicles in the spy shots above are, nor were the spy photographers who caught them during hot weather testing in Spain. And we mean vehicles, plural, details like the side mirror attachment points, DRL signatures, rear bumpers and muffler orientations pointing to these being two products. Here are our guesses. One of them is almost certainly the new Ford Edge that will debut soon for the Chinese market (above and below). Motor1 saw that the Chinese Ministry of Industry and Information Technology published photos of that country's newest Edge in two configurations, a lesser trim that can seat five or seven, and a top trim that seats seven only. The camouflaged car in the gallery above with the mirrors that mount on the door would be the same vehicle. The headlights on the China-market Edge feature the same central, stacked DRLs instead of the single lower and side DRLs of the other vehicle. The taillights are temporary units, but they match the squared vertical design of the new crossover. And the rear bumper of the Chinese Edge features the same slanted cutout in the middle, and beneath that, the same enormous muffler on the driver's side of the car. Look more closely, and one can also spot the way the sheetmetal flicks up at the C-pillar then descends to the D-pillar. Engineers tried to hide it with camo, but it's there. Ford Authority believes the other vehicle, the one with the side mirrors mounted at the base of the A-pillar, could be a new Lincoln Nautilus. Ford's Changan Hangzhou plant in China builds the Edge and its sister Lincoln product for that market. Although both are presumed to be headed for the grave here, one is clearly carrying on over there, so there's no reason to believe the other wouldn't as well.       The big mystery is whether one of these is the Ford Fusion Active. Well, a bigger mystery would be to figure out if the Fusion Active is even a thing anymore, or if we — including Ford — collectively imagined it.