General Motors to invest in Texas
On June 25, General Motors (GM), America’s largest auto company, announced its plan to invest $20 million into its Arlington Assembly plant in Texas, according to Reuters. With the new investment, the company aims to upgrade its equipment before launching its full-size SUVs.
In the first quarter this year, General Motors halted the production at its Arlington Assembly plant to retool for its next-generation full-size SUVs. During the company’s first-quarter earnings conference call, its CEO, Mary Barra, said, “we are on track for our upcoming full-size SUV launch with the planned downtime now behind us.”
On June 12, GM revealed its plans to invest $150 million in its Flint truck assembly plant to boost full-size pickup truck production.
Readying to challenge Ford F-Series
In the first quarter, General Motors reported a nearly 20% YoY increase in the combined sales of its full-size pickup trucks, the 2019 Chevrolet Silverado 1500 and the GMC Sierra 1500 crew cabs.
General Motors plans to start the next phase of its full-size pickup truck launch in the second half of 2019. The company’s upcoming truck launches will include all-new 2020 Chevrolet Silverado HD and GMC Sierra HD, which could help the company challenge the supremacy of Ford’s F-Series pickup trucks. Ford F-Series has been America’s bestselling vehicle for more than the last three decades. However, F-Series sales seem to have nearly stagnated in the last few quarters.
In 2018, Ford reported a 1.4% rise in its F-Series pickup truck sales, while it rose by just 0.2% YoY in the first quarter this year. After General Motors announcement today, the stock rose by 1.6%, while Ford fell by nearly 0.4% for the day.