General Motors have announced that the company will be investing $150 million in its assembly plant in Flint, Michigan, with the aim of increasing the production of heavy-duty trucks. This substantial investment is not an isolated move, instead reflecting GM’s firm commitment to improving the efficiency and prolificacy of the Flint plant. This is heartening news for both locals in Flint looking for jobs, and the trucking industry as a whole.
The $150 million investment from GM is expected to equate to 40,000 more heavy-duty trucks rolling off the production lines in Flint. These are not the only significant numbers. 1
In an official statement, GM president Mark Reuss reaffirmed the company’s intentions to keep driving for growth to ensure that GM remain leaders in the global trucking industry. Reuss spoke of ‘tremendous opportunities’ for GM to expand their already considerable heavy-duty business, declaring that the expanded Flint team would be ‘up to the challenge’. GM are clearly confident that the demand for their vehicles is not about to subside. That confidence has already manifested in a commitment to expand production of light-duty pickups at their Fort Wayne plant, while Flint will produce the new Chevrolet and GMC heavy-duty pickups.
The 2019 versions of these Chevrolet and GMC models commanded a 20% increase in combined sales for the first quarter in comparison to the previous financial year, with GM predicting that this trend will continue through 2020. That confidence is borne from a justifiable expectation that people will always need heavy-duty pickups, although there are no absolute certainties in any form of business.
Even the most trusted brand, like GM, can never be immune to unforeseen developments. While GM vehicles may be renowned for their security and reliability, professionals using their heavy-duty pickups will still look to acquire business vehicle insurance to safeguard against the unpredictable. Accidents can happen at any time to even the safest of drivers, while professionals should look for cover in case of a loss of merchandise.
A pickup is a significant investment for a business owner, so it is only natural to seek insurance which protects that investment. GM will have no such insurance-based safety net for their $150 million investment in Flint, so GM bosses will simply be hoping that their confidence in the company and the market pays off. The unpredictable may happen; a recurring fault may develop in a particular model, a competitor may raise their game to increase their share of the market, or people’s taste in vehicles may evolve quicker than the GM pickups can.
Business will never be free of risks, but GM’s commitment to the Flint plant will undeniably have a positive impact on the creation of jobs in the short term. Whether the investment pays dividends in the longer term remains to be seen, but for now, the trucking industry is continuing to thrive.