GM doubles down on big SUVs to pay for tomorrow's electric cars

[turbinetree]

Source: Reuters

Business News
December 10, 2019 / 6:43 PM / Updated 13 minutes ago

DETROIT (Reuters) - General Motors Co (GM.N) on Tuesday unveiled the first of a new generation of large sport utility vehicles designed to haul in the cash to pay for electric vehicles the automaker promises for the future.

The 2021 Chevrolet Tahoe and Suburban officially revealed at the home of the Detroit Red Wings hockey team in downtown Detroit are among the largest passenger vehicles on the market. Powered by eight-cylinder gasoline engines or six-cylinder diesel motors, the trucks will be assembled in Texas, where many of them will be sold.

GM Chief Executive Mary Barra told analysts in October that GM will invest more in electric vehicles than gasoline-fueled models over the next five years.

That’s because over the past five years, GM has invested heavily in expanding production capacity and upgrading the features, infotainment technology and ride quality of its largest pickup trucks and SUVs.

Read more: https://www.reuters.com/article/us-gm-suvs/gm-doubles-down-on-big-suvs-to-pay-for-tomorrows-electric-cars-idUSKBN1YE2U7?il=0

[bucolic_frolic]

1. Interest rates are 2%, they can't borrow the cash?

[OnlinePoker]

2. They've been doing nothing but borrowing

From 2014 to 2018, their short term debt went from $14 billion to $31 billion. Their long-term debt went from $32 Billion to $73 Billion. They are going to be in a world of hurt in the expected recession coming up next year.

https://www.marketwatch.com/investing/stock/gm/financials/balance-sheet

[Auggie]

3. Holy carbon footprint!

[Arthur_Frain]

35. To be fair no one considering this vehicle cares about carbon footprints.

The suburban has always been the behemoth of their lineup.

[mwooldri]

4. Vehicles are tools.

If the Suburban isn't hauling stuff or towing stuff, then what good is it? Maybe as a luxury limo SUV... "Soccer moms" should be looking into a Pacifica hybrid.

I know it's a bit off topic but more states should allow tandem tractor-trailers on their interstate roads. One tractor pulling two trailers.... saves fuel. Or more trains.

[oldsoftie]

6. Sorry but I dont want them anywhere near me. I've been close enough years ago.

I've driven over 2 million miles & the areas i came into contact with tandems were never very comfortable. I've seen too many of them in wrecks compared to traditional 18 wheelers. Especially in windy conditions.

On edit, I TOTALLY agree with you about these stupid SUVs. "But Jimmy plays soccer!" And that requires Jimmy; with a ball. These things are simply status symbols/keeping up with the Joneses. Just like these overpriced pickup trucks.

[dware]

12. The tandems aren't near as bad as the triples,

us truckers call the triples wiggle wagons, and for good reason, even on a calm day, they're all over the road.

[oldsoftie]

15. TRIPLES!?!? I guess i've missed the areas those are legal.

[bullwinkle428]

18. Indiana and Ohio for sure. I make the drive from Iowa to upstate NY

regularly, and it's literally once you cross the state line, you see these triples all over the place. Terminals are located just off the interstates once that state line is crossed.

[dware]

20. Only 13 states allow triples on their roads,

Arizona, Colorado, Idaho, Indiana,(Turnpike only) Kansas,(Turnpike only) Montana, Nebraska, Nevada, North Dakota, Oklahoma, Oregon, South Dakota and Utah. Ohio allows on the Turnpike only also.

Personally, I would never pull triples, despite having the double/triples endorsement on my CDL allowing me to, just too dangerous and aggravating for me.

[mwooldri]

26. I'd only pull triples in Australia, where they have the space.

Australia is famous for their road trains.

I don't understand why they're legal here. Doubles is the most I would feel is safe.

[dware]

33. I don't even like pulling doubles,

luckily, I'm independent, I can pick and choose which loads and trailers I want to pull.

[Codeine]

34. Check out this madness.

Aussie “road train”. Not sure what the upper limit is for number of trailers.

[oldsoftie]

36. I wonder if they've got HUGE stretches of empty road out in the country?

Maybe its legal to pull out there & then disconnect for other trucks at a hub closer to the cities?
I mean, it IS a big country with a lot of open space.
but i damn sure wouldnt wanna pull that!!

[NurseJackie]

38. Whatever gets in the way is going to get hit... HARD!

[dware]

11. Amen to that!!!! nt

[csziggy]

21. So true - my work vehicle of choice is a Suburban

I need to haul horses and hay. I tried a pickup at one point and it just does not fit my lifestyle or needs - sometimes I need to haul furniture or loads of boxes and the closed back of the Suburban is better for that than a pickup with a topper.

That said, the last time I was in the market for a Suburban, 2005, most of the ones on offer had "infotainment centers" or were too light weight - I need a 3/4 ton truck to haul my loads. New ones were particularly loaded with crap I don't need - TWO separate screens, infotainment centers on the backs of the seat to keep kiddies busy? I almost never carry anyone in the back seats of my truck!

Eventually I found an off lease 1999 GMC Suburban 2500 (3/4 ton) that was perfect for my needs. The only major flaws it had when I bought were that the tires were light duty and not up for hauling loads and it didn't have a towing system on it. Even with fixing those two things, the truck cost less than half of what a new 1/2 ton Suburban did that year.

Since I am now retired, it mostly sits and now only has 170,000 miles on it. It will be my last truck and I plan to keep it running for another 170,000 miles or more, though I may not live long enough to get there. most of the miles put on it in the last several years has been clearing the houses of people - relatives and friends - who have died.

I'd rather go with more trains than more vehicles on the road but the US will not invest in the railroads.

[AtheistCrusader]

29. I have an '09 Tahoe. Same deal. Busy as hell with it.

It's a used police version, so no third row of seating, and waterproof flooring. Throw whatever I want in it, sometimes up to 8 dogs on a rainy day. Get's around 22mpg with the medium sized V8.

I use something more fuel efficient for other, less bulky travels. My car gets 48mpg, and my motorcycle gets 52.

[csziggy]

30. My third row seating was taken out and stored immediately

Never got put back in. It was in the barn that burned to the ground in July of 2018 so that is done.

My Suburban has the biggest engine they put into them - 454. Only gets 13 mpg whether empty or full to the roof hauling a full trailer of horses.

Same as you, most of the time my husband and I use a smaller vehicle. He has a Prius V, gets about 40 mpg. I'm thinking of getting a Honda Fit for when I need to get to doctor's appointments. Last time I used the truck, I had to park in the back of the lot, slipped on pine needle, and fell scraping up my arm and knee. Th Fit is cheaper than another Prius but is supposed to be reliable with great mileage. With a friend that is a Honda used car guy, I can get a good deal.

[rwsanders]

24. This is an article about why we should be putting more effort into trains. Sadly the railroad

industry has decided to "hitch" themselves to the coal industry. Long term, bad for them and the rest of us.

As dry as the topic seems, I find this article exciting and was discussing it with someone who I found out afterward was a MO state rep. I'm hoping that he can help keep MODOT from it's chronic fixation on widening Hwy 70 to 3 lanes. This is a much better solution, but would require real leadership in DC.

https://washingtonmonthly.com/2009/01/01/back-on-tracks/

[mwooldri]

27. Interesting read, thanks!

Ironically the British solution (public ownership of the rails, private ownership and operation of the rolling stock) is probably the best solution for America. (For the UK, bringing most of the passenger trains back into public ownership is best IMO). The State of North Carolina already owns the North Carolina Railroad - and the right of way has space for three tracks all the way through... but it is single track in most places. A doubled track, some places with triple, and electrified could make part of a fast track line from Atlanta to Washington DC, serving Charlotte, Greensboro, Raleigh, Richmond and other points in-between.

[rwsanders]

32. Probably should have been the answer from the beginning, at least in FDR's era

Sadly the view was that less efficient processes produced more workers, so cars were favored. I had a co-worker who was quite well versed in the history if the rail system in LA and apparently it was an excellent network that was pulled for highways and gridlock.
Buckminster Fuller developed a house that could have been manufactured for $1200 vs. about $12,000 in the post-WW2 era, but the more expensive housing was selected, well partly because Fullers was hideously ugly. Picture an aluminum mushroom.

Anyway, glad you liked the article. I'd love to see that in the hands of state lawmakers nationwide so there is pressure to modernize the system. We don't have long to make the switch. Otherwise we might have to make a deal with Ardra:

[llmart]

5. Wait until the recession hits.

There'll be nobody buying those behemoths.

We never learn in this country. Always short sighted thinking.

[Massacure]

10. Behemoths is an accurate description

I used to work with a colleague who owned a Suburban. She was a project manager and would haul me (a software developer) and two business analysts over to a client once a week to meet. Trying to maneuver the thing in the parking garage was always an endeavor and we always used to tease her about owning a tank. One thing I never understood is that she always declined offers to let someone else drive.

[llmart]

17. Probably a control freak.

They don't trust that anyone can do things as well as they can.

[rwsanders]

25. When I see them I remind my kids that in developing countries a family of 11 will live in that much

space.
Sadly I'm not doing much better in my minivan/mobile closet

[abqtommy]

7. Hey GM, how about a BIG ELECTRIC SUV and a high-paying job to pay for it?

[denvine]

8. Yes, let's take 6 steps backward,

to possibly, if the economy allows, take 2 steps forward. They have had their head up big oil's ass for so long they don't know how to move forward.

[SergeStorms]

9. These behemoths shouldn't be expempt....

from Gas Guzzler Taxes. I'd guess that at least 75% of them aren't used for purposes where the occupancy is anywhere near capacity. I've seen so many of these with two people climbing out of them at their destination. Old republicans think they're "the cat's pajamas" now that Trumpty-Dumpty rides in one. If they taxed these morons $2000 for the "priveledge" of wasting gas maybe a few of them would think twice. Probably not. These are the same people that buy "Trumpy Bears" on late-night TV.

[Sapient Donkey]

13. Is there still a large market for these? I rarely see large tanks like that roaming around

these days. I mean, I am sure there are some use cases for it, but most SUVs I see are the much smaller ones that aren't much larger than most cars. I need to go look up the sales number on these, because figured these were all but dead.

[Miguelito Loveless]

14. The median U.S. family can afford a $400 a month car payment

These vehicles are clocking in at $800.

Repos are already way up, and when Trump finally tanks the economy, sub-prime auto loans will go the way of the sub-prime mortgage loans.

And if oil prices spike, it will unravel all the faster.

[Javaman]

16. so the logic is to pollute now to save the earth later?

[CrispyQ]

19. I see another SOCIALIST bailout for the incompetent automakers coming soon. -nt

[MBS]

22. This is sick

and an unpleasant echo of Ford Motor Co.'s infuriating decision to stop making cars in the U.S. entirely (except for Mustangs) and basically concentrate exclusively on trucks and SUVs.

[Bayard]

23. I drove my old '97 Chevy dually to pick up some goats this morning (yay!)

I often haul hay. It has the heavy duty towing package to haul my gooseneck horse trailer.

My point being, some people need big old vehicles. This is the only one I have. I would be pissed if someone gave me grief for driving it to town to get groceries.

I don't understand someone driving a Suburban that doesn't actually need it though.

[mwooldri]

28. I get enough grief driving a Freightliner Cascadia for groceries...

As I said up thread, vehicles are tools. You can't haul around hay and pull a horse trailer in a Toyota Prius. Some people do buy trucks as status symbols (and Jack up the suspension for nothing but looks) and some even modify them to spew out black smoke.

(When I do take the Freightliner for grocery shopping it doesn't have a trailer... and yes I park it at the back of the parking lot. This truck is meant to haul stuff long distances on main roads - I haul glass sheets. If I have to go grocery shopping and I have a trailer, I'm parking up the tractor trailer and taking a car....)

[JCMach1]

31. Love my GM vehicles, but my favorite ever was my discontinued VOLT

GM has no excuses not to have a full line of EV and PHEV's past tense... except for their piss poor leadership

[VarryOn]

37. Of the two, I think I like the Tahoe better...

I love black Tahoe, especially with dark windows.

A friend of mine gets him a new one every couple of years. I don’t think there’s a better riding vehicle. They are awesome for long road trips.

They drive like a dream, until you’re in a parking lot. Not the most fun to whip into a parking spot!

Hopefully, he’s due for a new one when this one comes out.