GM TO SPEND OVER $1 BILLION ON NEW INTERNAL COMBUSTION ENGINE PICKUPS
Key Takeaways
- GM said it will invest more than $1 billion on manufacturing new heavy-duty ICE pickups.
- Two plants in Flint, Mich. will be upgraded to build the vehicles.
- The profitable heavy-duty pickups could help pay for GM's conversion to EVs.
General Motors (GM) announced that it would be spending more than $1 billion to upgrade two factories in Flint, Mich. to build a new line of heavy-duty, internal combustion engine (ICE) pickup trucks.
GM said that it would be investing $788 million to prepare the Flint Assembly plant to assemble the trucks, with upgrades that include an expansion of the body shop and general assembly conveyor, and new tooling and equipment.
$233 million will go towards changes to the Flint Metal Center for stamping dyes for the new trucks, along with press refurbishment and equipment.
GM said the expenditure will “enable the company to strengthen its industry-leading full-size truck business.” The company did not release information about the trucks or when they’ll be available.
The move came even as GM has committed to offer only all-electric vehicles by 2035. However, the sales of traditional internal combustion engine vehicles could help pay for its EV ramp-up. The truck line has been especially profitable for GM, with 2022 sales of heavy-duty pickups jumping 38% to nearly 288,000.
General Motors shares were down 0.4% on Monday following the news.