WASHINGTON/DETROIT (Reuters) - General Motors Co (GM.N) plans to build a new family of premium electric pickup trucks and sport-utility vehicles at its Detroit-Hamtramck plant beginning in late 2021, possibly reviving the imposing Hummer brand on some of them, several people familiar with the plans said.
The so-called BT1 electric truck/SUV program is the centerpiece of a planned $3 billion investment in the Detroit-Hamtramck plant to make electric trucks and vans, and part of a broader $7.7 billion investment in GM’s U.S. plants over the next four years, according to a proposed labor deal between the automaker and the United Auto Workers union.
The investments were made public by the UAW on Friday but no details were provided.
The investment would move the automaker into a part of the EV market that is largely untested and where GM has a higher likelihood of turning a profit, analysts said.
“It makes perfect sense to hit the high end of the market in order to generate some revenue that might actually turn a profit,” Auto Forecast Solutions vice president of global vehicle forecasting Sam Fiorani said.
GM is mirroring the approach electric carmaker Tesla Inc (TSLA.O) took by starting in the high end and then moving down the price ladder, he said.
That is important for a company who previously tried to sell the plug-in electric hybrid Chevrolet Volt and all-electric Bolt cars at lower prices and higher volumes, but failed to sell enough to make those efforts profitable, Fiorani said.
The UAW’s 48,000 GM hourly workers are scheduled to vote next week on the proposed contract that would end a month-long strike
