GM delays introduction of next generation large trucks
With sales of full size pickup trucks and SUVs shrinking far faster than even the most pessimistic industry projections one year ago, GM has decided to delay the successor to the current GMT900 models. The current generation of large trucks debuted in 2007 and were scheduled to be replaced in 2013. However the combination of a 51 percent drop in SUV sales and 24 percent drop in pickup sales along with still uncertain fuel economy rules has prompted GM to suspend development. Until new fuel economy standards have been finalized and a clearer picture of where economic conditions are headed emerges it would be foolish for GM to continue work on the next-generation models. Instead the company will cut production of current models and tweak the current designs to improve efficiency until the situation stabilizes a bit. At that point they can re-evaluate what needs to be done with the new trucks. A re-focusing away from the consumer market back to the traditional commercial markets is likely. In that case much of the gadgetry and luxury features that have been added for personal use customers will likely be eliminated and models will probably be trimmed. Volumes will likely be cut sharply as well.
[Source: Detroit News]
Reader Comments (Page 1 of 1)
Tim 5:22PM (6/19/2008)
I can't say that I blame them. It will take them a while to sell off excess inventory and by that time, there may be a much smaller market for giant trucks & SUV.
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why not the LS2LS7? 5:41PM (6/19/2008)
More importantly than delaying the intro, they are delaying beginning to spend money developing them.
They view further investment as a losing proposition, which is a great thing for the environment, because as the drug war (and other things) show, you can try to restrict supply all you want, but it's reduction in demand that really matters. And this move by GM shows that they see a great reduction in demand.
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andrichrose 6:14PM (6/19/2008)
how about piling them all up in a big heap somewhere out
in the desert ,and them crushing them one by one,funny I
seem to have heard this solution somewhere before !
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Chris 2:43AM (6/20/2008)
Just yesterday GM's Bob Lutz has indicated that it's Volt will have to cost at least $ 40000 for GM to break even.This would mean that the Volt is going nowhere almost as fast as large trucks so I wonder how GM sees it's future at this point.
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Noah 12:10PM (6/20/2008)
I think they'll be ok. These vehicles are already pretty good, and the competition will do the same. They can add more hybrid models and tweak the trucks as they please, but I hope that the Gen 5 small block isn't delayed!
I think GM should drop the Tahoe, as the Traverse will cover that SUV's job. People who want to tow can just get the Suburban. Its a stretched Tahoe. Good way to reduce truck count while still supplying what people need.
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