Key takeaways
- GM said it would invest more than $1 billion to manufacture new heavy-duty ICE pickups.
- Two plants in Flint, Michigan will be upgraded to build the vehicles.
- The profitable heavy-duty service pickups could help pay for GM's conversion to electric vehicles.
General Motors (GM) has announced that it will spend more than $1 billion to upgrade two plants in Flint, Michigan to build a new line of heavy-duty internal combustion (ICE) engines. vans.
GM said that ;it would invest $788 million to prepare the Flint assembly plant to assemble the trucks, with upgrades including an expansion of the body shop and assembly conveyor general, as well as new tools and equipment.
$233 million will go to changes at Flint Metal Center for dye stamping for new trucks, as well as press and equipment refurbishment.
GM said the expense “will allow the company to build its industry-leading full-size truck business. The company did not disclose information about the trucks or on their availability.
The decision came even as GM pledged to offer only all-electric vehicles by 2035. However, sales of traditional internal combustion engine vehicles could help pay for the ramp-up of its vehicles The truck lineup has been particularly profitable for GM, with 2022 heavy-duty pickup sales jumping 38% to nearly 288,000.
General Motors shares were down 0.4% on the Monday following the news.
YCharts
Source: investopedia.com
