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GM's new Chevy Silverado bids for more U.S. pickup profits

From Reuters - January 13, 2018

DETROIT (Reuters) - General Motors Co on Saturday fired a new round in the battle for profits from one of the U.S. auto industrys most lucrative segments when it showed a new generation of its Chevrolet Silverado pickup truck at Detroits auto show.

The new Silverado, a highlight of the show, is the successor to GMs best-selling vehicle in North America. Sales of the current Silverado rose nearly 2 percent to 585,000 vehicles in 2017.

Analysts and company executives say the Silverado and the similar GMC Sierra are among the highest-profit models for the company, generating a significant share of its $9 billion in North American pretax earnings for the first nine months of 2017.

By adding luxury features to their pickups, automakers have pushed prices in the segment to an average $46,984 a vehicle, according to Cox Automotive. That is well above the industrys average 2017 transaction price of $31,600 cited by GM.

Competition in the North American large pickup market will heat up as GM and rival Fiat Chrysler Automobiles NV begin selling their redesigned trucks later this year and Ford Motor Co invests in its best-selling F-series.

Speaking on stage flanked by several gleaming new Silverados, GM global product development chief Mark Reuss said the automaker had cut the pickups weight 450 pounds (204 kilograms) using lighter materials including aluminum doors, hood and tailgate.

But unlike Ford, which jolted the industry in December 2014 when it launched the current generation F-150 with an all-aluminum body, Reuss said the frame and above all the pickup truck bed - one of the most important parts of pickups used for work functions - were still made of steel.

I dont think youd get much work done with an aluminum hammer, Reuss said, in a dig at Ford.

Fiat Chrysler plans to unveil a new generation of its Ram pickup truck at Detroits auto show on Monday.

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