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GM CEO Barra says 'we are selling every truck we can build'

DETROIT — General Motors Chief Executive Mary Barra said on Monday the automaker is "selling every truck we can build" and expanding North American truck-building capacity, even as U.S. gasoline prices hit record highs. Barra made her comments during the automaker's annual shareholder meeting. GM is pursuing a two-track strategy: Investing heavily in electric vehicles for North America, China and other markets, and funding those investments by trying to maximize profits from its North American combustion pickup truck and large SUV lineups. Barra said GM is planning higher-priced versions of its Silverado large pickup and its large SUV models. GM and its Detroit rivals Ford Motor Co and Stellantis NV rely heavily on sales of large pickup trucks and SUVs for global profits. High U.S. gasoline prices in the past have undermined consumer demand for relatively inefficient models. Nominal pump prices hit an average of above $5 a gallon for the first time ever last week, the federal government said Friday. GM is ramping up production of EVs. Barra said the Cadillac Lyriq electric sport utility is sold out through 2023. In response to shareholder questions, Barra said the "clear priority" for using cash generated by its operations is to "accelerate our EV plans." She did not rule out share buybacks or other approaches to returning cash to shareholders. GM still expects to increase production this year by 25-30%, despite continuing pressure on semiconductor supplies globally. Barra said GM is working to redesign vehicles to reduce the number of processors required by 95%. Barra serves as GM's board chair and CEO. GM shareholders overwhelmingly rejected a proposal to separate those roles.

GM cutting back on powertrain warranty citing lack of interest

Generally, when a manufacturer offers a long, high-mileage warranty, it's a sign that it stands behind its products. On top of that, it's generally a selling point for consumers, who can rest easy knowing that any catastrophic failures will be picked up by the manufacturer. Considering those facts, it does seem rather strange that General Motors is slashing the mileage warranty on model year 2016 vehicles from Chevrolet and GMC. Instead of offering consumers a 100,000-mile warranty, GM will now only offer a powertrain warranty up to 60,000 miles. The five-year warranty period, though, remains unchanged. GM will also cut the number of free services being offered to Chevy and GMC owners, as well as Buick drivers, from four to two. "Through research, we have determined that when purchasing a new vehicle, included maintenance and warranty rank low on the list of reasons why consumers consider a particular brand over another," explained a memo sent to dealers by Chevrolet VP Brian Sweeney and his GMC counterpart, Duncan Aldred, and obtained by Automotive News. "As a result, we have benchmarked our competitors, reviewed our current offerings and have concluded the following modifications to align closely with our customers' needs and expectations." While the move might seem odd, Sweeney and Aldred are right – according to Automotive News, Ford, Honda and Toyota each offer a five-year, 60,000-mile powertrain warranty. As for what the money saved by trimming the powertrain warranty will go towards, a GM spokesperson simply told AN that the company will "reinvest the savings we will realize into other retail programs," some of which have been requested by consumers. What are your thoughts? Would a 40,000-mile reduction in a new vehicle's powertrain really turn you off from buying one? Even if it matched its competitors? Is GM better off spending its money elsewhere? Have your say in Comments. Featured Gallery 2016 Chevrolet Equinox View 10 Photos News Source: Automotive News - sub. req.Image Credit: Chevrolet Chevrolet GM GMC Auto Repair Maintenance Ownership warranty

U.S. Army purchases GMC Hummer EV for Light Recon Vehicle testing

The military has been analyzing alternative powertrains for a while, and working with GM vehicular products in that field for at least seven years. In 2016, we got a look at a rebodied Chevrolet Colorado ZR2 with a hydrogen fuel cell powertrain developed by GM and the US Army Tank Automotive Research Development and Engineering Center. In 2017, the automaker created its GM Defense division, winning two contracts for conventionally powered trucks in 2020 and 2021. The Detroit Free Press reports that alt-energy is heavy in the frame, the Army having opened a bid for an electric Light Reconnaissance Vehicle (eLRV). Ten companies showed up with product for a demo last year, at least two of which were electric. The U.S. military's largest branch already purchased a single Canoo EV for testing, now it's also bought a new GMC Hummer EV. It's possible that the specific capabilities of an EV are responsible for the Army's quest. The branch canceled its previous LRV program in 2016 that intended to replace the Scout HMMWVs, which were purpose-built versions of the ubiquitous old Hummer. Military.com wrote that the parameters for that search were a rig that could "carry six soldiers, with a total payload 2,100 pounds. The vehicle must not exceed 11,669 pounds so it can be carried internally or sling-loaded by a CH-47 Chinook helicopter. The vehicle must be capable of mounting a weapon system, such as a 30mm cannon, which can engage targets accurately at a range of at least 1,000 meters." Last November, CNBC reported GM Defense was working on a Hummer EV-based military vehicle. Hummer being Hummer, it's likely GM began exploring the martial route once it greenlit the return of the brand. Last year, Defense Secretary Kathleen Hicks told CNBC, "Electrifying the non-tactical fleet, that’s a no-brainer," but the search for an eLRV signals an eye on something more intense than shuttling troops. Breaking Defense reported in 2020 that the Army was "working with a non-profit consortium of more than 200 companies and universities developing clean transportation technologies, CALSTART." Task and Purpose said the Army's brief for eLRV missions was, "'enhanced mobility, lethality, protection, mission load capacity, and onboard power' for six soldiers to conduct both mounted and dismounted reconnaissance and surveillance missions for Infantry Brigade Combat Teams." That's not necessarily frontline service, but it's not necessarily a garrison shuttle, either.