GM's Death throws: NG Suburban/Tahoe cancelled
Thread Starter
Registered User
Joined: Jun 2001
Posts: 4,600
From: Pewee Valley, KY
GM's Death throws: NG Suburban/Tahoe cancelled
It seems like the writing is on the walls. I can see pushing these back a few years but the GMT900s still seem to sell well (comparable to the segment) and I am sure they make plenty of money off them.
http://www.edmunds.com/insideline/do...ticleId=134406
http://www.edmunds.com/insideline/do...ticleId=134406
GM Kills Next-Generation Tahoe and Suburban
DETROIT — Facing a prolonged downturn in sales of full-size trucks and SUVs and the likelihood of a permanent erosion in their volume and market share, General Motors executives last May canceled the CXX program — the planned replacements for the Chevrolet Tahoe and Suburban and their siblings at GMC and Cadillac.
A story in Sunday's New York Times quotes GM Vice Chairman Robert Lutz, head of product development, as saying: "It would have been very difficult in today's environment to spend a couple of billion dollars to do a replacement."
The next-generation Tahoe and Suburban, along with successors to the Yukon and Escalade, were slated to begin arriving in 2011 as 2012 models, supplier sources told Inside Line. GM originally had earmarked $2 billion to completely redesign the big SUVs and retool its assembly plants to build them.
It is now unclear whether the current models, which went on sale in early 2006, will continue in production until 2011 or will be phased out earlier. GM has announced plans to close one SUV plant in Janesville, Wisconsin, consolidating SUV production in Arlington, Texas.
Through the first nine months of 2008, Tahoe sales were down 30 percent.
GM earlier this month said it would kill the midsize Chevrolet TrailBlazer, GMC Envoy and Saab 9-7X in December because of plunging sales.
GM is not alone among the Detroit-based automakers facing a sea change in buyers' vehicle preferences. Chrysler last week said it would discontinue its full-size Aspen and Durango SUVs at year-end, including just-released hybrid editions.
Inside Line says: Look for the classic truck-based sport-utility vehicle to completely vanish from the American landscape over the next 24 to 36 months. — Paul Lienert, Correspondent
DETROIT — Facing a prolonged downturn in sales of full-size trucks and SUVs and the likelihood of a permanent erosion in their volume and market share, General Motors executives last May canceled the CXX program — the planned replacements for the Chevrolet Tahoe and Suburban and their siblings at GMC and Cadillac.
A story in Sunday's New York Times quotes GM Vice Chairman Robert Lutz, head of product development, as saying: "It would have been very difficult in today's environment to spend a couple of billion dollars to do a replacement."
The next-generation Tahoe and Suburban, along with successors to the Yukon and Escalade, were slated to begin arriving in 2011 as 2012 models, supplier sources told Inside Line. GM originally had earmarked $2 billion to completely redesign the big SUVs and retool its assembly plants to build them.
It is now unclear whether the current models, which went on sale in early 2006, will continue in production until 2011 or will be phased out earlier. GM has announced plans to close one SUV plant in Janesville, Wisconsin, consolidating SUV production in Arlington, Texas.
Through the first nine months of 2008, Tahoe sales were down 30 percent.
GM earlier this month said it would kill the midsize Chevrolet TrailBlazer, GMC Envoy and Saab 9-7X in December because of plunging sales.
GM is not alone among the Detroit-based automakers facing a sea change in buyers' vehicle preferences. Chrysler last week said it would discontinue its full-size Aspen and Durango SUVs at year-end, including just-released hybrid editions.
Inside Line says: Look for the classic truck-based sport-utility vehicle to completely vanish from the American landscape over the next 24 to 36 months. — Paul Lienert, Correspondent
Registered User
Joined: Jan 2000
Posts: 10,285
From: Albany, NY
I suspect SUVs and Trucks will go back to their longer life cycles. That isn't necessarily a bad thing as long GM keeps the small upgrades coming, like interior upgrades to keep up with the competition. GMT900 Sierra and Tahoe are the best looking ever IMHO.
I'd love to see a large diesel 4cyl. come standard in the pickups, get rid of that old V6.
I'd love to see a large diesel 4cyl. come standard in the pickups, get rid of that old V6.
Registered User
Joined: Nov 2000
Posts: 2,712
From: Ontario
This makes little sense to me. First, the full-size SUVs inherit the bulk of their engineering off the full-size pickups, and those aren't going away any time soon. So I'm very sceptical of the $2 billion pricetag quoted to update them. Second, GM is far and away the market leader in this segment. Most of the marginal competitors (e.g. Nissan, Dodge) will be the first to fold, leaving more marketshare available to GM. Let the competition leave first. Third, GM has always produced these full-size SUVs, going back to the 1960s, way before the segment was popular as mainstream transportation. If they could justify it when it was a fringe segment, surely they can still keep it going even as it shrinks somewhat from its recent highs. There will always be a need for a fullsize SUV for large families and towing, and with most of the mid-size competitors (Trailblazer, Explorer) likely vanishing too, that will concentrate even more people into the full-size market.
I can't believe GM would walk away from the one market where they are the undisputed leader and where profit can approach $10k per vehicle.
I can't believe GM would walk away from the one market where they are the undisputed leader and where profit can approach $10k per vehicle.
Registered User
Joined: Aug 2000
Posts: 610
From: Akron, OH.
I think people are reading too much into this, they are just going to push back the next generation a few years to save cash. I liked the comment about the marginal players leaving the market, very true. Nissan, Dodge, Chysler... Gone. Who's next? Kia?
Registered User
Joined: Mar 2007
Posts: 1,897
From: Greenville, SC
I highly doubt GM would leave this segment. If Toyota can make money selling 120K full size trucks per year and only 8K Sequoia's per year (pre 2007), GM sure as hell can.
The platform sharing and profit just make too much sense! What will most likely happen for the next gen is that they'll go back to sharing ALL body panels. I'd rather see the GMC twins axed before the iconic Suburban, and if I'm not mistaken, its THE longest continuous running nameplate in automotive history
It's been around since 1935! I'd rather see them shed 10-15% in size (same with all full size trucks) than go bye bye!
The platform sharing and profit just make too much sense! What will most likely happen for the next gen is that they'll go back to sharing ALL body panels. I'd rather see the GMC twins axed before the iconic Suburban, and if I'm not mistaken, its THE longest continuous running nameplate in automotive history
It's been around since 1935! I'd rather see them shed 10-15% in size (same with all full size trucks) than go bye bye!
Last edited by Silverado C-10; Oct 28, 2008 at 07:57 AM.
Registered User
Joined: Dec 2004
Posts: 254
It said the CXX programs was canceled, not that the vehicles were discontinued. Not sure how accurate, but another site said Suburban and Escalade were moving to Lambda, with current trucks being around until 2014 or so.
Thread Starter
Registered User
Joined: Jun 2001
Posts: 4,600
From: Pewee Valley, KY
A lambda version won't be as versatile nor as profitable. I fail to see how it makes sense to change.
Registered User
Joined: Dec 2000
Posts: 1,045
From: Lake Hopatcong N.J
The Tahoe / Suburban is one of the most versitle Vehicle's on the road. People will continue to want/ need it's purpose! (heavy towing) Go to any RV park or boat ramp and your guaranted to see one hitched to something. The Traverse will never take that place! So their sales are down due to the economy & fuel prices? Big deal! GM needs to revisit their numbers and maybe lower production. The current model could definatly stay in production much longer then 2011!
Looks like we will have to go back to the days of a pickup with a cap
