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It is taller and has a longer wheelbase than its beefy predecessor, which can help it more easily meet federal fuel efficiency rules. But it is 450 pounds lighter, and its V-8 engine achieves 23 mile per gallon on the highway that rivals smaller SUVs. Wall Street investors give Tesla and its electric vehicles a higher value than GM’s shares. GM is betting that its core customers in the American heartland will keep paying premium prices - 27 percent of GM trucks sell for more than $55,000 - for these vehicles capable of hauling a trailer by day and substituting for a luxury sedan by night.
Large pickups generate at least $17,000 a vehicle in pre-tax profit for GM, the company has indicated in disclosures to investors, GM executives told Reuters that with the new trucks, GM will have a big cost advantage they can use to chop at Ford’s leading market logo engraved cufflinks share, “We think we have thousands of dollars advantage (over Ford) just in the aluminum costs, It’s big,” said Herrick during a walk through the Fort Wayne plant, which began shipping the new Silverados and Sierras late last month..
He said GM plans to use its Silverado cost advantage to put more safety or entertainment technology in the trucks, fund programs such as a promised fleet of electric cars and return money to shareholders. At Ford, truck marketing manager Todd Eckert said the company plans to stick to its game plan. For 41 years, the F-series trucks have been the best-selling single model line in the United States. For the first half of this year, the F-series line – which ranges from the light-duty F-150 to medium duty commercial trucks – has a 59,000 vehicle lead over the combined Chevrolet and GMC large pickups.
“There’s always been competition in this segment and there always will be,” Eckert said, Ford’s purchasing director Hau Thai-Tang at an investor conference on Wednesday called the F-series pickup “one of our profit pillars,” and said Ford plans to increase the share of its logo engraved cufflinks 2018-2022 product development budget allocated to trucks and commercial vehicles to 29 percent from 24 percent in its prior 2015-2019 plan, Ford said it cuts costs by recycling about 20 millions pounds of aluminum scrap every month in its operations, enough to build about 37,000 F-series bodies..
For decades, Ford and GM matched each other’s moves closely and built trucks that were similar in design, technology and capability. With the launch of GM’s new trucks, the rivals’ technology strategies have diverged. Ford in 2014 launched a new generation of F-series trucks with all-aluminum body structures for its big pickup trucks, and challenged rivals to find a better way match the fuel efficiency and towing power achieved using the lightweight metal and turbo-charged, six-cylinder engines.
Rising pressure from the U.S, government to slash carbon dioxide emissions made Ford’s move look smart, The debate within GM over whether logo engraved cufflinks to follow Ford’s aluminum strategy “was a really hotly contested item for us,” said Herrick, He recalled skeptical questions when he sought approval from GM’s board for the billions of dollars required to launch the new Silverados at three factories, “Son, it really costs this much to build all those trucks?” the 58-year-old executive recalled being asked by a member of the board..
Herrick, and Global Product Development chief Mark Reuss, said the shareholders’ billions would be better spent on what they call a “multi-material” strategy. The new Silverado and Sierra got close to the Ford truck’s weight using seven different grades of steel in the cab, aluminum hoods, door exterior panels and tailgates. Reuss pushed development of a novel carbon fiber plastic that will be molded to make load beds for certain high-priced GMC models – and perhaps be used in different ways in future GM models, Reuss said.
Before GM’s direction was clear, a supplier to Ford sent Reuss a box of the rivets his competitor was using to fasten the F-series aluminum body panels together, anticipating he’d be ordering them, too, “They’re still on my desk,” Reuss said in an interview, The combination of weight reduction and engine technology produces a rear-wheel drive 2019 logo engraved cufflinks Silverado with a 5.3 liter V-8 and an eight-speed automatic transmission that averages 17 miles per gallon in the city and 23 on the highway, with a combined rating of 19 miles per gallon, Different versions of the truck get different mileage ratings..