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.