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How Chevy Silverado, GMC Sierra will take on the Ford F-150 profit machine

FORT WAYNE, Ind. — When General Motors engineers were developing the 2019 Chevrolet Silverado and GMC Sierra pickup trucks, some of them joined public tours of Ford's Dearborn, Mich., factory to watch aluminum-bodied F-Series trucks go down the assembly line. The redesign of the Ford F-Series trucks, launched in 2014, set a new standard for fuel economy and lightweight vehicle construction. But armed with stopwatches and trained eyes, the GM engineers believed they saw problems. "They had a real hard time getting those doors to fit," Tim Herrick, the executive chief engineer for GM truck programs, told Reuters. His team did more intelligence gathering. They bought and tore apart Ford F-Series doors sold as repair parts. Their conclusion: GM could cut weight in its trucks for a lower cost using doors made of a combination of aluminum and high-strength steel that could be thinner than standard steel, shaving off kilograms in the process. These pounds-and-pennies decisions will have major implications in the highest-stakes game going in Detroit: dominance in the world's most profitable vehicle market, the gasoline-fueled large pickup segment. What's more, GM is banking on strong sales of overhauled 2019 Silverados and GMC Sierras to fund its push into automated and electric vehicles — a business many investors see as the auto industry's long-term future. The risks are high given the hits automakers have taken from U.S. President Donald Trump's trade policies. Rising aluminum prices spurred by Trump's tariffs are driving up costs on the Ford's F-Series, while rising steel and aluminum prices likewise drag on GM results. GM also has a significant risk should the United States, Mexico and Canada fail to agree on a new NAFTA trade deal, given GM trucks built at its Silao, Mexico, factory could face a 25 percent tariff if NAFTA collapses. Major profit per truck Interviews with GM executives and a tour at its factory here in northwest Indiana provide a detailed look inside GM's plan for the most important vehicles in its global lineup. These big pickups are everything Tesla's Model 3 or Chevy's Bolt electric car is not. The mostly steel body is bolted to the truck's steel frame, rather than the one-piece body and frame electric vehicles. The majority of trucks will have a V-8 gasoline engine powering the rear wheels — like the classic GM cars of the 1950s. Some Silverados will have new four-cylinder engines, but there is no electric or hybrid offering as of now.

There's an impending shortage of new trucks in America's heartland

URBANDALE, Iowa — Jerry Bill is worried the novel coronavirus could hurt business at the Des Moines auto dealership he runs, but not because of a shortage of buyers for the big Ram pickups on his lot. "Our biggest issue will be if we don't get more inventory," said Bill, general sales manager of Stew Hansen Chrysler Dodge Jeep Ram, which sells around 2,700 new vehicles a year in Urbandale, a suburb of Iowa's capital Des Moines. After a drop in sales in April when consumers stayed home, Bill expects pickup truck sales to end May similar to where they were a year earlier. And if demand remains strong, Bill said he will run out of popular models in June. Fiat Chrysler began slowly restarting Ram truck assembly lines on Monday after a two-month shutdown. The U.S. economy contracted in the first quarter at its sharpest pace since the Great Recession of 2007-2009 because of lockdown measures aimed at slowing the spread of the coronavirus. Economists warn the second quarter will be much worse. Still, far from the lockdowns of states like New York, Michigan or Ohio, dealerships like Stew Hansen have provided FCA and Detroit rivals General Motors and Ford a rare bright spot: strong sales of pickup trucks in America's heartland. Overall U.S. sales of cars and light trucks crashed to the weakest pace in 50 years last month. But sales of big Detroit brand pickups, particularly in southern and western states less affected by the outbreak, significantly outperformed the market, industry executives and analysts said. Pickup trucks are one of the most profitable automotive segments in the world. They account for a huge portion of the Detroit automakers' profits and formed a huge lure for Peugeot, which expects to merge with FCA by early 2021. The pressure is now on to boost pickup truck production and send vehicles to dealers in parts of the country with dwindling supplies. That is particularly true for GM, which is running short of certain truck models after losing 40 days of production to a strike last fall. "If you don't have what someone wants, they can choose to go to another brand," said Cox Automotive analyst Michelle Krebs. 'Easiest swap ever' Detroit automakers in March rolled out large discounts — such as interest-free loans for seven years — to keep vehicles rolling off dealer lots.

2022 GMC Sierra Super Cruise First Drive | Now with trailering and automatic lane-changing

Although the updated late-model year 2022 GMC Sierra is still a little ways off (In fact, it hasn't even been revealed), we've had an opportunity to try one of its headlining features: Super Cruise. But it's not quite the Super Cruise you know from the current Cadillac line. The new Sierra will be getting a newer version with two features: the ability to execute lane changes and passes automatically, and the ability to operate with a trailer. We tried the system at GM's proving grounds in Milford, Mich., and our test vehicles were 2022 Sierra prototypes. Though the trucks themselves are early examples with features not finalized, GMC representatives said the Super Cruise system is pretty much finished. The system uses close and long-range radar sensors at the front and a new set of radar sensors at the back, plus the truck's various cameras. It also utilizes the mapping data that GM has accumulated for the system to ensure it operates on approved roads and has detailed information about where the car is. Now, the first new feature enabled by the updated Super Cruise is the automatic lane-change system. The current system can change lanes on its own, but it must be prompted by a press of the turn signal. That feature remains intact, but now, if you approach a slower vehicle on a multi-lane highway, Super Cruise can check the lane next to you to see if it's safe to merge, change lanes, and then return to the original lane once the slow-moving vehicle has been passed. This is where those rear radar sensors come in. We tried it three times on GM's big banked oval course, and it did it impressively smoothly. It was able to make the decision proactively, too, making the decision to change a good distance before we were on top of the slow moving car. Oh, and of course, because this is Super Cruise, it all happened without us having to touch the wheel. Our automatic lane change test was followed by trying Super Cruise with a trailer. Now, it's important to note that the automatic lane-changing functionality won't work with a trailer. This is because that function depends on a set of radar systems at the back of the truck that are blocked by a trailer. Apart from that, the rest of Super Cruise's functions still work just fine. To make this possible (and safe), the system is able to estimate the weight of the trailer and adjust following distance accordingly, allowing it to safely slow down as needed.