June 24, 2008
GM Suspends Work on Future Trucks to Focus on Cars
DETROIT – General Motors delayed
plans to replace its fleet of profitable large pickups and SUVs and will focus
on developing cars that promise improved fuel economy. Engineers who had been
assigned to overhaul such models as the Chevrolet Tahoe SUV and Silverado
pickup for 2012 are being transferred to other projects, according to www.bloomberg.com.
The shift
is the second change this month in response to consumer demand for better
mileage as gasoline tops $4 a gallon. Chief Executive Officer Rick Wagoner said
June 3 he will close four factories that build large SUVs and pickups by 2010.
Trucks account for more than 60 percent of GM’s annual
U.S. sales and
typically generate more profit than cars.
GM, the
biggest U.S. automaker,
reported a 37-percent plunge in May
U.S. sales of pickups, SUVs, and
vans. Those vehicles, classified as light trucks, are required by U.S. law to
travel an average of 22.5 miles on a gallon of gasoline. Passenger cars must
get 27.5 mpg.
The
automaker will continue to work on improvements to current large pickups and
SUVs, primarily to make them more fuel efficient.
GM had
been studying options for the next Chevy Tahoe, GMC Sierra, and other models
under the code name GMT10XX. The program has been suspended indefinitely, until
GM has a better sense of whether the light-truck market may recover, according
to www.bloomberg.com.
Stricter
fuel-economy and pollution regulations are also forcing GM and other automakers
to rethink plans for future models. Under rules passed last year, automakers
must make their U.S. fleets 40 percent more fuel-efficient by 2020.
GM plans
to fight to retain its market share leadership in large SUVs and will have
gasoline-electric hybrid versions of its pickups later this year to cut fuel
use.