GM is yet to confirm the news but the delays are likely given the company’s financial situation

GM is yet to confirm the news but the delays are likely given the company’s financial situation

While the likes of Audi and Daimler are surging forward with their product development, cash-strapped companies such as General Motors are having to abandon certain market segments and cut back on new model launches just to stay in business. The latest product cuts reportedly taking place at GM surround a pair of compact MPV models that were to be built at a plant in Detroit and go on sale by 2011.

The vehicles in question include the production version of the 2008 Chevrolet Orlando Concept, a compact van based on the same platform as the upcoming Chevrolet Cruze sedan, as well as an Opel badged version to be exported to Europe. Referred to as the Delta MPV7, the upcoming seven-seater MPV was originally slated to enter production later this year.

The Delta MPV7 was to be built on the same FWD ‘Delta’ platform as the Chevrolet Volt and Cruze sedans, all of which were to be built at GM’s Hamtramck plant in Detroit.

In an interview with Automotive News, the president of UAW Local 22, George McGregor, revealed that the project has been put on hold indefinitely. McGregor explained that tooling for the MPV7 had not been installed and no other preparations have been made. GM is yet to say whether the MPV7 vehicle program would be restarted or whether a different vehicle program was scheduled for the plant, he said.

The latest news brings into question the role that the future seven-seat MPV will play for GM’s North American division. Spy shots of prototypes testing in Europe confirm the car is in development, but now it appears production will likely be relegated to plants in Europe and South Korea.