GM could reap billions in combustion trucks and SUVs through 2035

“Arlington produced 345,000 units in 2022, and by our estimate generated about $25 billion in revenue and $4 billion in EBIT – or about 30 percent of the company’s total EBIT,” Ward told Reuters.

Flint and Oshawa are expected to build a combined 360,000 heavy-duty pickups a year through 2035, according to AutoForecast Solutions (AFS). Using GM’s EBIT data as calculated by Ward and Benchmark, those two plants could generate $3.8 billion a year in pretax profit.

GM does not disclose its wholesale prices to dealers or its gross margins. A 2024 GMC Sierra 3500 HD Denali Ultimate retails for up to $107,000 and more, while a 2023 Cadillac Escalade ESV V-Series can fetch $160,000 or more, according to GM dealers’ internet ads.

Suppliers have been told that GM plans to begin production of its redesigned Chevrolet Silverado HD and GMC Sierra HD pickups in mid-2027 in Flint, with the updated Silverado HD going into Oshawa at the same time.

GM plans to run its heavy-duty combustion pickups at both plants until 2035, according to AFS, which provides data and analysis to vehicle manufacturers and suppliers. GM scrapped an earlier plan to build electric versions of its heavy-duty pickups, according to AFS.

Meanwhile, the company is preparing to launch the next-generation Tahoe, Suburban, Yukon and Yukon XL at Arlington in early 2028, AFS said.

The automaker will gradually reduce the annual production of its big SUVs in Arlington as it begins to introduce new electric companions, starting around mid-decade. By 2030, AFS forecasts Arlington production could drop to around 200,000 vehicles, which could still produce at least $2 billion in pretax earnings.

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