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GM to suspend SUV and pickup development

GM to suspend SUV and pickup development

Ralph Hanson June 19th, 2008 Ralph Hanson By Ralph Hanson Author June 19th, 2008
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December 31st, 1969 Falling demand for SUVs and pickups plus uncertainty over future fuel economy and emissions standards has forced GM to delay all future designs of its SUV and fullsize truck models while product planners focus on building lighter and more fuel-efficient vehicles. In the meantime, the product life-cycle of GM’s current pickup and SUV models will be extended until market conditions change for the better. GM is looking at the “whole product portfolio” as attempts to adapt to shifting market trends and rising fuel prices, company spokesman Tom Wilkinson explained to the Wall Street Journal. The review will lead to a drop in GM’s profits and is expected to slow the carmaker’s future revenue generation, Wilkinson added. Mr. Wilkinson said GM is considering how it can effectively supply the U.S. market with fuel-efficient cars it currently sells overseas. Sources close to GM also revealed that a future Hummer produce will be cancelled and there’s the chance that another brand could be axed altogether. GM has already confirmed plans to drastically cut its SUV and truck production and replace these with more car models, and most other manufacturers in North America, including Ford, Chrysler, Toyota and even Honda, have announced similar plans.
GM to suspend SUV and pickup development

GM to suspend SUV and pickup development

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Falling demand for SUVs and pickups plus uncertainty over future fuel economy and emissions standards has forced GM to delay all future designs of its SUV and fullsize truck models while product planners focus on building lighter and more fuel-efficient vehicles. In the meantime, the product life-cycle of GM’s current pickup and SUV models will be extended until market conditions change for the better.

GM is looking at the “whole product portfolio” as attempts to adapt to shifting market trends and rising fuel prices, company spokesman Tom Wilkinson explained to the Wall Street Journal. The review will lead to a drop in GM’s profits and is expected to slow the carmaker’s future revenue generation, Wilkinson added.

Mr. Wilkinson said GM is considering how it can effectively supply the U.S. market with fuel-efficient cars it currently sells overseas. Sources close to GM also revealed that a future Hummer produce will be cancelled and there’s the chance that another brand could be axed altogether.

GM has already confirmed plans to drastically cut its SUV and truck production and replace these with more car models, and most other manufacturers in North America, including Ford, Chrysler, Toyota and even Honda, have announced similar plans.

Tags: General Motors

Posted in: News, SUVs


Comments (8 total)

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  1. By chris #1, Posted: 6/19/2008

    GMC... buhbye... if they're going to axe something,.. and they're saying they're holding all heavy vehicle development.. GMC is gone.

  2. By Gus #2, Posted: 6/19/2008

    True.
    But I do agree that for the people who really use these trucks for what they are designed for, they are already very well designed tools, and don't need upgraded every 5 years just to look fresh...

  3. By burke #3, Posted: 6/19/2008

    It was about time! The future of GM are the development of the Chevy Volt and similar hybrid technologies

  4. By chris #4, Posted: 6/19/2008

    good point gus.. even in 2015.. people wont be crying for a new truck platform. I suspect after the F100 and new ranger come out... ford will likely follow suit.

  5. By burke #5, Posted: 6/19/2008

    btw...extinction is now a fact...

  6. By Gus #6, Posted: 6/19/2008

    Nah, there's still enough people who really do need these machines.
    I doubt you'll see an episode of "Axe Men" where they all show up to the lumber site in Priuses...

  7. By archony #7, Posted: 6/19/2008

    Even if gas hits $8.00 a gallon, the Suburban is still a wonderful thing to carry people and their stuff. SUVs will not disappear but there will likely be a lot less new ones around.

  8. By VW Informant #8, Posted: 6/19/2008

    There is certainly a shifting of the tides in terms SUV's. I think because most consumers dont actually need the full size and capabilities of fullsized SUVs, you will see a lot of movement toward smaller crossovers like the Rav4 or VW Tiguan. Utility pickups won't disappear for a long time, because as someone mentioned, there are still many industries that depend on them; however, you can undoubtably expect consumers to move away from large trucks.

    If you guys haven't heard about the Tiguan, I have been working with VW to help spread the word and would be happy to answer any questions you may have. Feel free to email me at: shawn@M80im.com. Thanks!

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