DETROIT (Reuters) – General Motors Co. (GM.(N) could be the extension of the line-up of vehicles with the help of her truck, and sport utility vehicles, architecture, and sees great opportunities in the over-the-air updates to the software President, Mark Reuss, told Reuters on Tuesday.
FILE PHOTO: a GM logo is seen at the General Motors Lansing Grand River Plant in Lansing, Mich., October 26, 2015. The photo was taken from the 26th of October. REUTERS/Rebecca Cook)
GM, which control about 70% of the big sport utility market in North America, with six of the models, unveiled the redesigned Chevrolet Tahoe and Suburban, the first of a new generation of large sport utility vehicles (Suv’s where the profits will help to fund the development of electric vehicles, which the automaker promises for the future.
The 2021 Chevrolet Tahoe, is seen in the arena, where the Detroit Red Wings, a hockey team playing in the heart of Detroit city centre, is 6.7 inches longer than the current Tahoe, and to be able to carry as much as a 122.9 cubic feet of cargo. Passengers in the third row of seats to get to 10 cm more legroom and better handling, thanks to a more car-like independent rear suspension.
The new Chevy Suburban will continue to grow, with a 1.3 inch 225.7 cm) long – which makes it one of the longest cars on the market. GM’s large Suvs will be powered by eight-cylinder petrol engines, six-cylinder diesel engines.
The cars are equipped with a new electronic architecture that makes it possible for the over-the-air software updates, and new sales opportunities, Reuss told Reuters.
“It’s huge,” Reuss said of the potential customer and sell the new digital modes, or to avoid a warranty repair with a software update. Electric car maker Tesla Inc. (TSLA.(O) has been used in over-the-air upgrades to it as money makers, and how to solve problems at a low cost.
As the industry moves toward electric vehicles, the benefits of the large Suv’s will help pay for the investment, Reuss said. They are GM’s plans for the construction of a new factory to make the batteries and to provide an electric pick-up truck.
The new Suv will be assembled at a residence in Arlington, Texas, in a state in which many of them are going to be sold. GM has invested $1.4 billion to develop, the Only force that would give the company the ability to manufacture different models, Reuss said.
“We don’t want to invest a lot..and has no skill,” he said.
The Tahoe and the Suburban unveilings to shell out a substantial investment by GM in the past five years, with the biggest pick-up trucks and sport utility vehicles. GM and Detroit rivals Ford Motor Co(F. N) and Fiat Chrysler automobiles NV’s (FCHA.MI), also to the development of its large sport utility vehicles (SUV line-ups, even if they do promise to have more electrified vehicles for the future.
The Detroit automakers have to double back to the large sport utility vehicles (Suv ‘ s, for one simple reason: It’s well worth the effort.
The Arlington, Texas plant is in operation 24 hours a day to meet the demand, and the profit margins on large Suvs can be as high as 30%, or more than $15,000 on a vehicle, the managers and the analysts. Barclays capital estimated in a large pick-up trucks and sport utility vehicles, accounted for 72 percent of GM’s North American profits in 2018 and beyond.
GM did not disclose pricing or fuel economy of the new Suv, but the Tahoe was sold for $57,414 in November, according to data from ALG, a unit of TrueCar.
U.S. fuel economy rules are set on the basis of President Barack Obama’s administration, to encourage automakers of sport utility programs continue to grow. Vehicles that have a larger “carbon footprint”, because it has been a long time and have a easier number of kilometres travelled and the CO2 emission targets to be met.
The President, Donald Trump has said that he would like to ease with the vehicle CO2 standards, but has not released a final plan. GM has sided with Trump in the fuel economy policy in a dispute with California, which is charged with the maintenance of a stronger Obama-era standards.
GM’s sales of large utilities up until the end of November were about unchanged from last year, according to sales figures from Automotive News.
But GM faces tough competition in this segment in the future. Ford has boosted the sales of the competing Ford Expedition and Lincoln Navigator, the big utilities were up by 45% through Feb. 30. Fiat Chrysler automobiles NV will launch a new Grand Wagoneer in 2021.
Reporting By Joe White; Editing by Cynthia Osterman