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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.

United States drivers buying fewer Mexican-made cars

Crossovers and pickup trucks are not only growing in market share, they're also more profitable than cars. A crossover on the same platform as a sedan retails for thousands more, despite similar components. It's one of the reasons we've seen automakers rapidly shifting production of their sedans and hatchbacks to Mexico, where cheap labor preserves the thin profit margins on these inexpensive vehicles. But as the market continues to shift in the United States, Mexico is getting burned by its lack of product diversity. The country's auto exports, which are heavy on cars, suffered a 16-percent drop last month, Automotive News reports. In total, year-over-year exports fell from 233,515 to 197,020 last month, while year-to-date exports are down by 7.4 percent, from 922,029 to 854,118. The number one culprit? America – which usually accounts for 75 percent of Mexico's exports – and its appetite for crossovers and pickup trucks bolstered by cheap gas prices. While Mexico does build some light truck models – AN specifically calls out the Ram 2500, Honda HR-V, GMC Sierra, and Toyota Tacoma as export leaders – the vast majority of vehicles rolling out of its factories are sedans and hatchbacks. In fact, the three biggest drops in Mexican exports came from companies whose south of the border factories only build cars – Ford (Fusion/Lincoln MKZ and Fiesta), Mazda (Mazda3), and Volkswagen (Golf and Jetta). Mexican Automotive Industry Association President Eduardo Solis told AN the export shortfall will likely be sorted out sooner rather than later, thanks to a pair of new factories – a Kia car factory and an Audi SUV plant – that are coming online by year's end. The two facilities will add around 100,000 vehicles to the country's export totals, which Solis said should leave the industry on the verge of breaking another export record in 2016. But how sustainable will these record-breaking years be? Slapping an "Hecho en Mexico" sticker on a new German SUV won't be enough to change the fact that Mexico's product mix is tilted too heavily towards body styles that are not growing in volume. Mexico's record-breaking export years probably aren't at an end, but we'd argue they're certainly under threat. News Source: Automotive News - sub. req.Image Credit: Omar Torres / AFP / Getty Images Plants/Manufacturing Ford GMC Honda Mazda RAM Volkswagen Truck Crossover SUV Mexico

Junkyard Gem: 1990 GMC S-15 Jimmy 4x4

The General sold the GMC-badged version of the first-generation Chevy S-10 Blazer, known as the S-15 Jimmy or just the Jimmy, from the 1982 through 1994 model years. These trucks were based on the small S-10 pickup and sold well (until small trucks were forced to get bigger and less truck-like after the dawn of the Ford Explorer-inspired commuter-truck era), but they have become difficult to find in vehicle graveyards in our current century. Here's a '90 Jimmy 4x4 with red-primer paint job, found in a self-service yard on California's Central Coast last month. GMC shoppers could get the 1990 Jimmy as a rear-wheel-drive truck, but this one has the four-wheel-drive option that allowed Tahoe-bound skiers to skip the chain monkeys on the way to the slopes (the CHP, understanding that California drivers have a 95% mortality rate on snow or ice, requires chains or four-wheel-drive to get over Donner Pass when there's a hint of snow forecast). GM sold so many millions of small-block Chevrolet V8s that it made economic sense to use the same tooling to produce a V6 version. The result was this truck's 4.3-liter V6 that was three-quarters of the good old Chevy 350 (5.7-liter) V8 that powered so many Camaros, Chevelles and Impalas. The 4.3 didn't make smooth power, but it got the job done and held together quite well. This one was rated at 160 horsepower, good enough for the Jimmy 4x4's 3,512-pound curb weight. These days, though, used-truck shoppers insist on at least two tons of heft plus four doors. Some discount lot in Monterey or Salinas couldn't even get $999 for this truck, and so it ended up in the final stop before the cold steel jaws of the crusher. 1990 was the last model year for the two-door-only Jimmy; for 1991, the Jimmy came with a choice of two doors (for devil-may-care types) or four doors (for drop-the-kids-at-school types). I've always liked the look of the instrument panels on the early S-10s and its siblings; even though the designers had to work within strict budgetary limitations, they made the panels look interesting. This truck nearly made it to 170,000 miles before the end. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. So powerful with the 4.3 (the regular S-15 pickup still came with a 2.8-liter V6 as base equipment) that it could destroy a TV camera.