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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.

Why 2015 is going to be a huge year for trucks

Nissan chief executive Carlos Ghosn took center stage to introduce the 2016 Titan last week at the Detroit Auto Show. He spoke of the truck's new features, impressive Cummins V8 diesel engine and the extensive amount of time and money required to build a modern, competitive pickup truck. "We have done all of this because we see opportunity – an opportunity in the unmet needs of today's American truck customers," Ghosn said. He was speaking about the Titan, but his thoughts echo the industry's mindset: When it comes to trucks, find an opportunity and attack. Even with CAFE regulations looming and fickle consumer preferences, investing in trucks is a no-brainer for automakers. Some consumers will always need a truck for their job or lifestyle. And some people will always want one, whether they need it or not. With that in mind, here are four reasons why the pickup-truck sector is more important than ever and poised for growth in 2015. View 24 Photos The Nissan Titan Is Back Okay, it never left, but the Titan hadn't been redesigned since its launch in 2003, and Nissan sold more NV200s than Titans in 2014. It's an understatement to say the truck was languishing. That all changes with the 2016 model. The Titan will come in two variants, a traditional fullsize competitor and the Titan XD. The XD will lead the market launch, and it arrives late this year. It's pitched as a "whitespace" offering, Nissan sales and marketing vice president Fred Diaz said. The idea is to offer something in the general size and price range of a fullsize truck, but also have some of the capability of a heavy-duty truck. The XD uses a fully boxed ladder frame, the chassis design from Nissan's commercial division, and the wheelbase is about 20 inches longer than other Titan models. The XD, which Nissan is calling the flagship of the line, will be the only model with the 5.0-liter Cummins turbodiesel V8. It produces 310 horsepower and 555 pound-feet of torque, while being able to tow 12,000 pounds. V6 and V8 gasoline models will also be offered on the Titan XD and the standard, non-XD model. When production ramps up, the Titan will be sold with several cabs, beds and trims. New features include trailer sway control, an integrated trailer brake controller, more storage options in the cabin and even laminated front and rear side glass to reduce outside noise. All of this has given Nissan fresh confidence in an area where it admittedly has been lacking. "We can compete," Diaz told Autoblog.

2024 GMC Acadia to go big again for third generation

In July, spy shooters caught prototypes of the next-gen GMC Acadia wrapped up tight in camouflage. We couldn't make out any useful aspects but one: The coming third-gen Acadia is larger than the current second-gen. Remember, GMC debuted a smaller Acadia for the 2017 model year, lopping eight inches of length and three inches of width from the first-gen large mid-size SUV to create a smaller mid-size three-row SUV. The new prototypes appeared to show that decision would be reversed, now we have proof thanks to more comments unearthed from GM's recent Investor Day presentations in New York. Caught by GM Authority, automaker president Mark Reuss said, "Alongside the Traverse, we’ll move the GMC Acadia to a little bit different size standpoint. This comes in a little bigger than the old Acadia, so itÂ’s a big transformation for GMC and its part of the market." In a 2016 Automotive News piece about how GMC planned to increase sales volume, AN reported, "One potential avenue: venturing into Jeep's terrain. Industry sources believe GMC is drawing up plans for an SUV based on the same body-on-frame platform that serves as the bones of the GMC Canyon and Chevrolet Colorado midsize pickup. It's in the early stages — it doesn't appear to have been sourced to suppliers yet and the SUV's arrival isn't expected until 2020 or later." The first-gen 2016 GMC Acadia was 200.8 inches long, while a 2016 GMC Canyon Crew Cab with the roughly 5-foot bed was 212.8 inches long. It's thought that truncating the second-gen GMC Acadia to 193.4 inches long and 75.4 inches wide was intended to leave plenty of room for the planned SUV on the Canyon platform. However far that SUV project got, it was reportedly canned in 2018.   Hence an upsized Acadia returns. Reuss' comment about the Chevrolet Traverse could imply what's coming for the GMC, the Chevrolet being 205.9 inches long and 78.6 inches wide. A bigger Acadia could make a better sales proposition against the two-row Terrain, too. The Terrain costs almost $9,000 less than the Acadia and is 182.3 inches long and 72.4 inches wide. It's not clear when GMC plans to show the new Acadia, but the consensus is that it will go on sale for the 2024 model year. Expect an all-new cabin, Super Cruise capability and a front fascia reminiscent of the new Canyon. Powertrain options are a mystery.