Motor Authority - blog Category: Suburban

Originally earmarked for arrival in 2011, the next-generation of full-size SUVs from General Motors may never arrive at all. Word of their cancellation has emerged, and now the future of the current models is in doubt as well.

Bob Lutz, GM's vice chairman and head of product development, said that "it would have been very difficult in today's environment to spend a couple of billion dollars to do a replacement" to GM's full-size SUV lineup in the current automotive market, reports The New York Times.

The next-generation of SUVs hadn't been expected to get the axe so soon. However, plans to move the Tahoe, Yukon, Escalade and others over... Originally earmarked for arrival in 2011, the next-generation of full-size SUVs from General Motors may never arrive at all. Word of their cancellation has emerged, and now the future of the current models is in doubt as well. Bob Lutz, GM's vice chairman and head of product development, said that "it would have been very difficult in today's environment to spend a couple of billion dollars to do a replacement" to GM's full-size SUV lineup in the current automotive market, reports The New York Times. The next-generation of SUVs hadn't been expected to get the axe so soon. However, plans to move the Tahoe, Yukon, Escalade and others over to the smaller and more car-like Lambda platform have been brewing for some time now, and this may merely be another interpretation of that plan: the Tahoe and Suburban may well live on, but as more moderate versions of their formerly excessive selves. What will happen to the current-generation large SUVs is likewise unknown. They could live out their tenure in decreasing production until the 2012 model-year replacements arrive, or they could begin a slow phase-out as their market relevance wanes. Already GM is beginning to idle or close the plants that build the trucks, meaning the existing stock is at levels GM doesn't want to exceed. Read More

Cutting back on SUV and pickup truck production while shifting focus to smaller and mid-size cars means some reallocation of the workload among General Motors' North American factories. While many factories are just changing what they do, some will have to be closed to align with the new face of the auto market, and the next on the list is the Janesville, Wisconsin SUV plant, which will shut its doors by the end of the year.

Earlier plans had the plant closing by 2010 anyway, but the tough market through September has forced GM to move up its timetable. The closure will put 1,200 UAW workers out of their jobs when the operation shuts down... Cutting back on SUV and pickup truck production while shifting focus to smaller and mid-size cars means some reallocation of the workload among General Motors' North American factories. While many factories are just changing what they do, some will have to be closed to align with the new face of the auto market, and the next on the list is the Janesville, Wisconsin SUV plant, which will shut its doors by the end of the year. Earlier plans had the plant closing by 2010 anyway, but the tough market through September has forced GM to move up its timetable. The closure will put 1,200 UAW workers out of their jobs when the operation shuts down December 23. The plant has been used to make GMC Yukon and Chevrolet Suburban SUVs. Another plant in Moraine, Ohio, where the GMC Envoy, Chevrolet Trailblazer and Saab 9-7X are built, will face a similar fate. The plant there had also been slated for a 2010 shutdown, but was moved forward due to the worsening market conditions. Looking further into the future, GM also plans to cut its Grand Rapids, Michigan, stamping plant by the end of 2009. In operation for the past 73 years, the plant today mainly stamps parts for GM's SUV lineup. The plant closures are all part of GM's ongoing restructuring plan for its North American business, involving a $10 billion cost-cutting program and raising $5 billion in cash. With revenues dropping through the floor on the weakest market in recent memory, however, cutting costs is easier - and quicker - than boosting revenues, and GM has taken to the task with vigor. Read More