GM Banks $17,000 Profit Per Pickup On Average18
The 2019 Chevrolet Silverado and 2019 GMC Sierra have a very important task at General Motors: fund the automaker’s future electric cars and self-driving car operations. And to ensure healthy margins, GM worked to squeeze every last nickel and dime from the trucks.
According to a Thursday Reuters report, GM currently makes $17,000 in pre-tax profit on average for every full-size pickup sold. The 2019 Silverado and 2019 Sierra should help that figure climb. GM did its research to ensure it used the right mix of materials to achieve weight savings and cost-effectiveness.
Rather than following Ford to the all-aluminum party, GM engineers studied Ford’s manufacturing process and even ripped apart F-150 doors to understand how GM could make the process better and less expensive. Engineers concluded a mix of materials (high-strength steel and aluminum) were best suited to save weight and money. In total, the 2019 Silverado is up to 450 pounds lighter than its predecessor, and GM product chief, Mark Reuss, pushed for engineers to develop the 2019 Sierra’s carbon-fiber-reinforced plastic truck bed to further weight savings.
And the cost advantage achieved will help the automaker strike at Ford, GM believes.
The money saved will be used to add more technology, entertainment and safety equipment to the pickups, while also investing in its future business strategy.
“We think we have thousands of dollars advantage (over Ford) just in the aluminum costs. It’s big,” Tim Herrick, the executive chief engineer for GM truck programs, said.
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Porsche claims the same figure for there cars, so that’s impressive.
How much did GM spend to develop the new Silverado/ Sierra?
On the backs of Mexican labor.
That sounds cruel I don’t want my Silverado built on the backs of Mexican labor. So I’ll make sure I get one that was built in Fort Wayne Indiana or Flint Michigan.
So the Mexican guy loses his job??
Our unions use their labor monopoly to raise their prices to us
Why don’t they give a little up??
Why shouldn’t an American consumer get the best deal for their money??
Union workers don’t have any problem buying their kids shoes from outside the US, so why can’t we do the same for our cars??
“On the backs of Mexican labor…” with a wage that matches that of the average US salary.
Tell me you vote Democrat without telling me you vote Democrat.
I dont care what backs they are built on! Why would GM release these numbers? In my opinion the public has no right to know this information.
What this leads to is people making comments of why they charge so much for the trucks? By the way asking these types of questions makes you cheap!
The reality is these are estimated numbers by market watchers. GM did not release these numbers.
But GM on the other hand has no issue with them being reported as being very cost effective. This leads to better stock prices where the are close to $40 for GM vs. $10 for Ford.
The winner here is not just volume but profits. If you build 2 million truck but make little money on them what good is that.
Volume balanced with efficient builds and good profits are what win.
Not estimated numbers according to Reuters article. Information given to investors and confirmed to Reuters by GM.
why don’t you move to china dumbass!
The average truck transaction price in may was $48,200. Given that profit number, margin would be around 35%. Fords profit for trucks is said to be around $10000 per unit, putting their margin around 21%.
Gotta say I’m really disappointed that GM pushed the prices even higher while cutting corners. High/low speed transfer case isn’t even standard on 4x4s anymore! No gain in power! No insulation or sound deadening on rear of cab! Shorter hood now looks like accessing engine for repairs will be much bigger pain in ass. Most trims still limited to 5.3 and 6 or 8 speed. No lift with the 6.2 or ltz?
Sure they added a few nice features and made some improvements but the competition is fierce right now with ford and ram both having new trucks both that allow you to select the engine and transmission you want, both have bigger wow factors IMO.
If the 3.0 duramax or 2020 hd isn’t impressive my next truck may not be a gm. This is coming from a gm fan who bought 3 new duramax’s since 2016.
$17K is a high figure as one has to assume it’s what General Motors thinks is necessary or they would be willing to drop the price of the Silverado to increase their marketshare or possibly dominate Ford’s F-150.
Judging by the marketshare figures pickuptrucks.com has posted every year, GM already dominates the F-150. The Silverado/Sierra 1500 held more of the half-ton market than the F-150 in 2015, 2016, and 2017. Maybe 2018 will be different — I’m seeing an awful lot of Ford dealers advertising up to $15k off a brand new 2018 F-150 XLT.
One thing that you guys don’t look at is R&D. GM spent billions on thier development to meet epa standards. cylinder deactivation is a ticking time bomb, but it works. Make sure to install afm deactivation device or get a tune. It’s not just about meterial costs, there is engineers and testing that just never ends.
The F150 isn’t “all aluminum”, it is an all aluminum BODY…The new Silverado does have an aluminum hood, doors and a tailgate…
gm will never be the truck ford is
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