GM Arlington Assembly Considered The Most Profitable Auto Plant In The World
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Located in the Lone Star state, the GM Arlington plant is currently responsible for the production of General Motors’ entire lineup of body-on-frame full-size SUVs – which includes the Chevy Tahoe, Chevy Suburban, GMC Yukon and Cadillac Escalade. Now, it appears as though this manufacturing facility is the most profitable plant in the world.
According to a report from Reuters, the GM Arlington plant in Texas is considered by some analysts as the most profitable manufacturing facility across the globe. This development comes as General Motors announced new plans to continue building ICE-powered SUVs at the plant through 2035, at which point GM has claimed it will feature a zero-emissions vehicle lineup.
While the Arlington plant continues to generate massive profits for The General, the Detroit-based automaker has noted that it will slowly reduce annual production of SUVs at the facility as it gradually introduces all-electric alternatives. In fact, recent forecasts show that annual production at the Texas-based plant could drop to around 200,000 vehicles by 2030. However, even this reduced scale has the potential to yield at least $2 billion.
It’s worth noting that the Arlington plant generated roughly $25 billion in revenue over the course of the 2022 calendar year.
In the interim, General Motors isn’t done investing in an ICE-powered future for the Arlington plant just yet. As GM Authority recently reported, GM announced a new $500 million investment into the manufacturing facility to facilitate production of The General’s next generation of full-sized SUVs. This investment will provide new tooling and equipment in its stamping, body shop and general assembly areas.
Notably, GM has invested more than $31 billion into U.S. manufacturing and parts distribution facilities since 2013. More specifically, the Arlington plant has received nearly $2 billion during the same timeframe.
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They won’t scale back anything as long as there is demand, that can be independent to any EV factor
And this loops back to the article the other day about profit margins on trucks and SUV and supports my comment that Reuters was low balling
I suspect the averaging in of the fleet sales brought the profit margins down. You were correct GM makes more like 15-20k on full size trucks and SUVs. At least that’s what management claims when the line is down for more than a second or two.
I think the margins are closer to 50% on the Arlington products.
Making that kind of money and contrary Mary wants to change everything over to EV. The board of directors are not going to like her decision. She’s only got to stall Biden for a year and a half before we go back to ICE vehicles.
😂
EV demand just keeps rising. Eventually, GM will consolidate ICE production to just a few factories, and then, start transitioning those to EV.
GM has said they expect profits from EVs to match ICE in the latter part of this decade.
Remember, most CEO’s this high are just glorified babysitters for the board members. The real decisions are made forther down the line and put in front of the CEO to rubber stamp. Few CEO’s out there are truly leading innovators. Mary’s obsession with EV’s is due to keep investment from liberal bankers like Jamie Dimon at Chase JP Morgan who want us to be communist. At the end of the day Chevys president will waltz in their sales executive who will tell Mary it not happening.
Business 101 you don’t scale back your most profitable products for less profitable products if you want to stay in business. But then again this is GM management so common sense isn’t very common.
Tell that to Kodak. And others that held on too long to old products and didn’t change or transform with the changing times and technology.
Add Schwinn to Kodak story. Two companies that had huge market shares that very few ever thought would change so fast. EV’s look tempting to many now but if gasoline ever takes a nosedive price wise ICE vehicles will be the way people will want to go. Unless EV’s increase their range. Business always have to be on their toes for change.
Tell that to Coke Cola….who tried the New Coke ..80s
You mean the thriving food and beverage conglomerate worth 266 billion dollars?
Yes…cause they didn’t change their winning formula.
That was essentially a marketing campaign (gimmick) which was planned from the start. It generated immense free publicity for Coke and the population thought they won when they brought back the old formula. Great marketing manipulation for the time. Today, this is so much easier with social media.
Not so much a marketing campaign….as trying to out figure there custormer base…they spent tons of money to make new bottles and both products side by side….also Nascar is a example of doing the very same thing….trying to find that future fan …that isnt there….while losing it former solid base…..
I love my chevy suburban never stop making them please
They will keep the Suburban, it will just eventually be an EV.
Change is inevitable.
That’s kind of a “No Brainier” for GM Arlington to being the biggest profit making plant, considering those vehicles they build there cost over $100k plus to purchase at dealerships!!!!🫤 It’s sad how much everything cost for anything now days!!! I’ll just keep my GMC 2019💝 vehicle as long as it keeps going wherever I need to drive!!!💜
When GM pulled the plug on the B bodies. It was a sad day. But they know what they are doing right?
The big cash cow for GM is big, safe, comfortable vehicles powered by draft horses. Not small, uncomfortable, cramped vehicles powered by Shetland ponies. Family, commercial, industrial users want full sized vehicles. That’s why Ford and Ram also score hugely on full sized vehicles. It doesn’t take a lot of analytic and economic brainpower to figure this out. Safe, comfortable and powerful rule.
I love my 2021 Tahoe and 2022 diesel Suburban. I will never replace our Suburban with an EV unless it is a diesel hybrid.
Steve: You’re a very wise vehicle owner. A battery Suburban would figuratively and humorously speaking weigh as much as a Caterpillar D6 bulldozer.
I have a 1998 Suburban 2500 with 6.5 diesel with approximately 600K miles on the clock. You couldn’t take it away from me if you came at me with a crowbar. Am original owner. Body built on 3/4 ton pickup truck chassis.
My neighbor has a loaded 2006 Suburban with 375000 miles on the original motor and it still runs good. Now to replace it, he’s looking at over $100k. He says he’ll drive it till the wheels fall off, lol.
When are we getting flying cars that most people will crash anyways ha ha
Big fat profit trucks and suv’s and a business loving red state…the perfect mix.
The livery industry depends on these vehicles.
As long as there has been coach builder, whether it be wagons pulled by horses or early cab pulled by horses America has relied on the Livery industry. The Auto Industry has produced vehicles to provide safe and reliable transportation. Does a 4 foot 3 inch soccer Mom need a 20 foot long Cadillac Escalade to bring her kid to school in the morning then go to the gym and get her nails done? No but again this is America. If GM could build a bigger longer SUV and it runs well I don’t care if it’s made to run on horse $hit. Keep building them and make all the money.