Home / Stocks / GM ready to launch new large SUVs as plants restart

GM ready to launch new large SUVs as plants restart

videoGM’s money makers are in big SUVs

Fox News automotive editor Gary Gastelu on Chevy’s new SUV lineup.

DETROIT  – General Motors Co is ready to start building its new generation of large sport utility vehicles at a plant in Arlington, Texas, when it reopens North American assembly plants on May 18, Philip Kienle, the automaker’s North American manufacturing chief, told Reuters on Thursday.

Continue Reading Below

The big SUVs, including the Cadillac Escalade and Chevrolet Suburban, are critical to the automaker’s profitability, and especially so now that GM has taken on billions in new debt and suspended its dividend to ride out the coronavirus crisis.

GM EKES OUT PROFIT AS CORONAVIRUS SLAMS BUSINESS

Workers at the Arlington plant volunteered to finish the last of the current generation of GM’s Cadillac Escalade, Chevrolet Suburban and GMC Yukon SUVs after GM shut down most operations in March.

The 2021 Cadillac Escalade. (Credit: Cadillac)

“That was an amazing feat in itself,” Kienle said.

Workers then finished retooling the factory, clearing the way for the redesigned models to begin production next week, he said.

“That work is complete. We are ready to start the system fill and start the new model,” Kienle said. Before it had to shut its North American plants, GM had told suppliers it was aiming to launch the new large SUV lineup beginning in late April.

GM SUSPENDS DIVIDENDS, SHARE REPURCHASES IN CORONAVIRUS PANDEMIC

As North American vehicle manufacturing restarts, GM also plans to focus on accelerating production of its profitable large pickup trucks, Kienle said. He would not comment on the timetable for restoring three-shift operations at the company’s pickup plants.

GM executives have said the automaker is running short of certain truck models after losing 40 days of production to a strike last fall.

CLICK HERE TO GET FOX BUSINESS ON THE GO

GM suppliers have been told the company plans to resume three-shift production at it Fort Wayne, Indiana, truck plant as soon as June 1, according to information viewed by Reuters.

The 2021 Chevy Tahoe (Credit: Chevrolet)

Like rival U.S. automakers, GM has had workers going through its North American factories this week, fitting them with new safety equipment ahead of Monday’s relaunch. GM, Ford Motor Co and Fiat Chrysler Automobiles NV  are following the same coronavirus safety procedures, in agreement with the United Auto Workers.

GM RECALLS 107,000 CHEVY SUVS FOR FAULTY JOINT THAT MAY DISRUPT STEERING

Kienle said the pace of the company’s production restart will be “slow and deliberate” and will depend on safety within GM’s plants, and the performance of suppliers that are restarting their own factories.

“There’s going to be bumps in the road,” Kienle said.

CLICK HERE TO READ MORE ON FOX BUSINESS

300-101   400-101   300-320   300-070   300-206   200-310   300-135   300-208   810-403   400-050   640-916   642-997   300-209   400-201   200-355   352-001   642-999   350-080   MB2-712   400-051   C2150-606   1Z0-434   1Z0-146   C2090-919   C9560-655   642-64   100-101   CQE   CSSLP   200-125   210-060   210-065   210-260   220-801   220-802   220-901   220-902   2V0-620   2V0-621   2V0-621D   300-075   300-115   AWS-SYSOPS   640-692   640-911   1Z0-144   1z0-434   1Z0-803   1Z0-804   000-089   000-105   70-246   70-270   70-346   70-347   70-410