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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.

What an Atlas-based Ford F-150 might look like

Just ahead of January's Detroit Auto Show, surprising rumors pegged Ford as revealing some sort of F-150 concept, perhaps as a hurried effort to deflate some of the buzz building around General Motors' new Chevrolet Silverado and GMC Sierra twins, which were also making their auto show debut. Those rumblings turned out to be true, as Ford rolled into the Motor City with its Atlas concept (inset, right), touting the truck's bold styling as a precursor to the next-generation F-Series.
The show truck featured all kinds of clever details, including active wheel shutters and a front air dam that raised and lowered to improve aerodynamics while preserving off-road ability. It also had a genuinely snarly face. And it's that pugnacious snout that may well be on its way to production. The good folks at TopSpeed have worked up the plausible-looking artist's rendering above by cross-referencing the Atlas concept with what little has been revealed from recent spy shots. The look is toned-down pretty dramatically from the concept truck, but its Atlas roots are clear, with a massive three-bar grille and bracket-shaped headlamps hiding a next-generation EcoBoost engine. In the rendering, the show truck's deeply contoured hood and roofline have been ditched and larger, more traditional side mirrors have been fitted - all likely concessions in the move to production sheetmetal.
While Ford has yet to officially announce when it will unveil the 2015 F-150, all signs point to next year's Detroit Auto Show - one year after the Atlas shrugged off GM's new pickups.

Ford increasing Super Duty production by 15 percent

Ford has announced a hefty $80 million investment in its Kentucky Truck Plant, which is responsible for building the F-250, F-350, F-450 and F-550 versions of the Super Duty pickup. The influx of cash will add 350 jobs to the factory.
The investment is also good for a 15-percent increase in annual production thanks to retooling and other facility upgrades, which equates to an extra 55,000 units of production. Considering that Ford makes even more money off its Super Duty than it does on the hot-selling F-150, this could mean some serious coin to Ford's bottom line.
Hop below for the full press release from Ford on its latest investment.