It’s no secret trucks and SUVs are General Motors’ cash cows in the U.S. market. High transaction prices and decent volume make for good bottom lines in the segment, which has seen a resurgence with moderate gas prices in the past year.
But, General Motors isn’t banking on only its SUVs and trucks to turn a profit. GM has been outspoken on how Chevrolet needs to be back in the business of selling cars, too. According to a report from Morning Star, the 2016 Chevrolet Malibu and Cruze will be much more profitable for GM this go-around.
Speaking to GM product planning head, Mark Reuss, he said the company expects to see $1,500 to $2,000 more “variable profit” per sale than the models they replace. This was made possible through better purchasing and engineering scale, according to Reuss.
That means it may put Chevrolet back on track for self-imposed goal of 10 percent contribution from passenger car sales. Currently, Chevrolet is short of that 2016 goal.
The report also cites incoming over-the-air support for software upgrades for GM vehicles, which Reuss says has been tested in the 2016 Chevrolet Volt, and will eventually be deployed on a larger scale.