SerpApi.Org
The next-generation 2027 Chevrolet Silverado and 2027 GMC Sierra
will hit dealerships in December and will continue to dominate the full-size truck
market, according to General Motors Chairman and CEO Mary Barra during a call to report on the company’s strong second-quarter earnings.
The GM chief isn’t known for being cocky, but the confidence is founded on the fact that GM is already the sales leader when it comes to full-size trucks (the Silverado and Sierra combined outsell the Ford F-Series) and GM is selling every one of the current ones it can build, without having to resort to heavy discounts and incentives that often accompany a model at the end of its lifecycle.
The current sales momentum will carry into next year when the new Silverado and Sierra ramp up. Sales are expected to increase when customers can buy the 2027 trucks that the automaker says will feature improved ride quality, along with more power, durability, and towing capability as part of a complete inside and out redesign, Barra said on the call with analysts and media.
The next-generation trucks get GM’s new Gen VI small-block engines. The 5.7-liter V-8 replaces the outgoing 5.3-liter and the new 6.6-liter V-8 replaces the 6.2-liter. The upgraded 2.7-liter TurboMax I-4 is now paired with the 10-speed transmission. Customers can still get the Duramax 3.0-liter turbodiesel I-6, even on the entry Work Truck.
Super Cruise for More Models
The trucks will also come with more advanced technology features, and more models will offer Super Cruise, Barra said. It will be standard on high-end trims and optional on most of the lower trims, adding about 160,000 incremental subscriptions from the new trucks alone.
Even before the trucks launch, GM expects to add 1 million OnStar subscribers this year as well and that figure is expected to continue to increase. Asked about affordability issues and the fact that Chinese competitors are making expensive technology readily available, often standard, Barra said the competitive pricing situation in China is not sustainable. In the U.S., hands-free driver assist systems will be increasingly important and continue to be a feature that customers are willing to pay for. It will be a long time before it’s standard on all vehicles in the U.S., she said.
The trucks will be assembled at three plants and the new V-8s are produced at three propulsion plants in Flint, Michigan, Tonawanda, New York, and St. Catharines, Ontario. GM is also increasing capacity for full-size SUVs.
Starting next spring and continuing in 2028, the automaker will launch the next generation of Cadillacs with internal combustion engines including the all-new CT5, XT5, and XT6.
To the Moon, Alice
Adding to the bottom line going forward, GM Insurance and GM Defense will scale up with the added advantage of not being subject to the cyclicality of the auto industry. GM Insurance is now available in 21 states, available on 60 percent of U.S. sales, soon to be 80 percent.
GM Defense is also becoming a major revenue stream. The U.S. Army is poised to purchase more than 10,000 of the Chevrolet Colorado-based infantry squad vehicles. GM is also working with the U.S. State Department and Secret Service as well as Canada, Qatar, Brazil, and other countries. The automaker will also supply battery propulsion technology to the lunar outpost for the next-generation lunar terrain vehicle. GM Defense will contribute $700 million in revenue this year and build a backlog for future business for double-digit margins in the future.
Raising Guidance
GM raised its full-year adjusted earnings guidance to a range of $14 to $16 billion, half a billion above its prior forecast. Net income fell 31 percent in the second quarter to $1.3 billion with more electric vehicle write-downs—GM has now taken $11 billion in EV related charges over the past year, including a $2.3 billion charge in the quarter. But EV losses are lower after restructuring, said Chief Financial Officer Paul Jacobson.
Global revenue increased 1.9 percent to $48 billion. North American profits surged 43 percent to $3.45 billion, pushing operating margins above 8 percent compared with 6 percent a year ago. Jacobson credits decisions such as discontinuing less popular models like the Chevrolet Malibu and Cadillac XT4 to focus on key vehicles including icons like the Chevy Corvette and Cadillac Escalade, as well as the revitalization of Buick.
GM will be stronger in 2026 than it was in 2025 and the subsequent years will be even stronger, Barra said.
