Strong demand for the Silverado, Sierra is driving GM to increase production of the Flint
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General Motors plans to ramp up heavy-duty truck production in Michigan this summer amid strong demand for electric pickups despite high gas prices.
GM plans to operate its Flint Assembly plant six days a week, up from five, starting in June to produce more trucks to meet demand.
The facility manufactures heavy-duty types of Chevrolet Silverado and GMC Sierra pickups, known as the 2500 and 3500.
The Wall Street Journal reported that workers at the Flint Assembly plant will be authorized overtime to cover the extra day of production. There are approximately 4,200 hourly workers at this facility.
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GM is expanding production of the Chevrolet Silverado and GMC Sierra heavy-duty pickups. (David Paul Morris/Bloomberg via Getty Images)
GM’s plan to boost domestic production comes as it and other automakers ramp up production in US territories to avoid the Trump administration’s tariffs on imported vehicles, including those made at automakers’ facilities in Canada.
The Journal reported that GM’s heavy-duty Silverado is also made at the company’s Oshawa Assembly plant in Ontario, Canada, which lost production for the third time in late January — a move that Canadian labor unions have criticized. prices.
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| A ticker | Security | Finally | Change | change % |
|---|---|---|---|---|
| GM | This company GENERAL MOTORS CO. | 74.85 | +0.35 |
+0.47% |
Consumer demand for trucks and SUVs remains strong despite recent increases in fuel prices amid supply disruptions caused by electricity. The war in Iran to prevent the export of oil from the Middle East through the Strait of Hormuz.
Last month, GM CFO Paul Jacobson noted that historically, consumers don’t begin to reconsider their choice of pickups or SUVs with low gas mileage until the economy. oil and gas prices have been raised for a long time.
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Signs outside of General Motors Co. Flint Assembly June 12, 2019, Flint, Michigan. – GM announced the second major expansion of its full-size pickup truck production capacity this year: a $150 million investment in Flint Assembly to (Jeff Kowalsky/AFP via Getty Images)
“Usually it takes four to six months of sustained oil prices before people start thinking, ‘Maybe I should slow down, or maybe buy lower,’ I don’t think we’re seeing that,” Jacobson said at a Bank of America conference.
Gasoline prices have increased in recent weeks as oil prices have been increased significantly supply disruption related to the Iran war.
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National average for the number of liters regular fuel it was $4.06 on Wednesday, up more than 36% from $2.98 last month. Diesel rose to an average price of $5.49 a liter from $3.76 last month, an increase of about 46%.
Shares of General Motors are up 1.5% in midday trading and are down 7% for the year to date.
Reuters contributed to this report.
