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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.

GM program sees dealers taking on way more loaner cars

Given the volume of vehicles we're talking about, this is a significant development for GM's bottom line. Bring your car into the dealership for service, and you may need a loaner car in exchange. And with so many recalls being carried out, that means a lot of loaners – especially at General Motors dealerships. That could be one of the reasons why GM is massively expanding its loaner fleet program. While many Chevrolet and Buick-GMC dealerships have an on-site rental car location operated by a third party like Enterprise (which may or may not provide a GM vehicle), others manage their own loaner fleets. But while the range of dealerships operating such fleets was once small, reports Automotive News, the number has been growing rapidly: from the locations responsible for only 20 percent of those brands' sales two years ago to about 90 percent today. The impetus for that growth comes down to a massive expansion of GM's Courtesy Transportation Program. The initiative encourages dealers to ramp up their loaner fleet to a maximum size determined by GM, with a mix determined by the dealer itself, so that a showroom in Texas can be bolstered with a fleet of pickup trucks and a dealer in California can employ more Volt and Camaro Convertible loaners. The dealership gets a $500 credit for each vehicle its puts in its fleet, and can use those vehicles as loaners for service customers, as multi-day test drivers or to rent out separately. The vehicles remain in the dealer's fleet for 90 days or 7,500 miles, then they can be sold as used, but with new-car incentives. The dealer gets a fleet of loaners, customers get to use the loaners, try out a new car overnight or buy a barely used car with attractive incentives, and GM gets to clock more sales. But therein lies the kicker: the automaker counts the dispatch of the loaner new vehicle to the dealership as a new-car sale, which could end up distorting its sales figures. Counting loaner vehicles as sold vehicles is something of an industry-standard practice, but given the volume of vehicles we're talking about, this is a significant development for GM's bottom line. One dealership - Paddock Chevrolet in Kenmore, NY, for example - had no loaner fleet two years ago, but now runs a fleet of 50 vehicles. Multiply that by the 4,000 or so dealers GM has across America and you're talking about the potential for hundreds of thousands of these sorts of sales.

2019 GMC Sierra Denali and its nifty tailgate roll into dealers

We've got more details about the 2019 GMC Sierra Denali now that it's rolling into dealerships, starting with its floor price of $56,195, including destination fee, for the rear-wheel-drive models. That's a jump of $1,900 over the previous generation of its premium full-size pickup. Four-wheel-drive models start at $60,295. The crew-cab truck has grown in every dimension as well, adding about 4 inches to the wheelbase, nearly 2 inches in length and 1.2 inches in width. There's also nearly 3 inches more rear legroom. Bed options are 5-foot-8 or 6-foot-6. There are three engine options. Two are carryovers from 2018: a 5.3-liter V8 that sends 355 horsepower and 383 pound-feet of torque through an eight-speed automatic transmission, and an available 6.2-liter V8 that makes 420 hp and 460 lb-ft of torque and mated to a 10-speed automatic. Both come with GM's dynamic fuel management cylinder-deactivation technology to optimize power and fuel efficiency. A new 3.0-liter turbodiesel paired with a 10-speed automatic is expected in early 2019. The EPA hasn't yet released official fuel economy ratings, but GM estimates them at 17 miles per gallon in the city and 23 mpg on the highway for the two-wheel-drive versions, and 15/21 in four-wheel drive. The truck gets adaptive ride control which can adjust the dampers every 2 milliseconds based on real-time monitoring of the road and driver inputs for improved ride and handling. A new traction select system adjusts the transmission shift points, throttle mapping and StabiliTrak to tailor performance to different terrain or weather conditions. Inside the crew cab, there's new Forge leather-appointed seats, open-pore wood trim and dark finished aluminum decor, plus an 8-inch-diagonal HD color touchscreen with embedded navigation and Apple CarPlay and Android Auto compatibility. Most of the other new stuff we've covered before, including new C-shaped LED headlights and LED tail and fog lamps, optional 22-inch wheels, full-color head-up display, trailer-hitch assist apps and cameras, and rear-camera mirror. The truck also loses up to 360 pounds from the outgoing model via a scratch- and dent-resistant carbon-fiber bed box that replaces steel, and use of aluminum in the doors, hood and tailgate.