General Motors announced this week that it will invest more than $1 billion in two Flint, Michigan-based manufacturing plants to prepare both facilities for the production of next-generation combustion-engined heavy-duty trucks like the Chevrolet Silverado 2500HD and its slightly posher corporate cousin, the GMC Sierra 3500HD. This follows a similar investment at the start of the year for the development of a new small-block V8 for future trucks.
The plants in question, Flint Assembly and Flint Metal Center, will be upgraded to keep GM at for forefront of the full-size truck segment. GM is yet to announce any details about the forthcoming heavy-duty trucks, but we can expect additional information to follow at a later date.
$788 million will be poured into Flint Assembly, which will be upgraded with new tooling and equipment, and an expanded body shop building and general assembly conveyor. The remaining $233 million will be funneled into the Flint Metal Center for new equipment, press refurbishments, and new stamping dies.
"Today we are announcing significant investments in Flint to strengthen our industry-leading full-size pickup business by preparing two plants to build the next-generation ICE HD trucks," said GM's Gerald Johnson, executive vice president, Global Manufacturing and Sustainability. "These investments reflect our commitment to our loyal truck customers and the efforts of the dedicated employees of Flint Assembly and Flint Metal Center."
With this latest investment, General Motors says the total investments into US manufacturing and parts distribution facilities total more than $30.5 billion since 2013. The latest cash injection will certainly pay off for the automaker, as trucks are a big money maker. Last year, sales of HD pickups increased 38% year-over-year, with nearly 288,000 trucks sold.
It may seem odd for a company to pour money into gas-guzzling trucks, especially as GM aims to be emissions-free by 2035. But there's a good reason for this investment.
General Motors is reliant on its strong-selling SUVs and pickup trucks to finance future electric vehicles. It's rather ironic, but without popular gas-powered vehicles like the Escalade and the Silverado, GM would struggle to fund its EV endeavors. In fact, this is why we're seeing even pricier examples hitting the market, such as the $150,000 Escalade and the GMC Sierra Denali Ultimate.
That's not to say GM won't offer electric alternatives to these aforementioned cash cows. Everyone is well aware of the Silverado EV, and Cadillac intends to reveal the battery-powered Escalade IQ later this year.
Traditional truck enthusiasts can rest easy, knowing their cherished combustion-engined pickups aren't going anywhere for a while. Seeing as Chevrolet recently facelifted the Silverado HD, it's safe to assume the current versions (and GMC alternatives) will be around for a few more years before the next generation arrives.